The PVC resin prices have reported another big jump in October month, which was not being anticipated by PVC Boards and PVC edge band tapes producers. The second jump has created a pain full situation for producers, because they are not comfortable to pass this increase cost to market within a month.
PVC Boards and PVC edge band tapes producers reveal ‘the prices of PVC resins are up by 10-12 percent during September month. It is noted that prices of raw materials for WPC and tapes had been increasing from August 2020 only, but the manufacturers and industry could not anticipate the second wave of hike in raw materials prices. The continued momentum in price jump is a big unsettling point for producers as there is a significant jump in their RM input cost. Producers say that the second hike would completely disturb their calculation and margins, and if they will not increase the prices immediately, they may suffer severe loss.
It is noted that in September month, PVC Edge Band Tape prices were reported to increase by 10 percent due to escalating in price of its key raw material, known as PVC Resins. The Edge Band tape prices were increased in different slabs depending upon thickness and quality in tune to 10 to 12 % for different brands.
The same impact was being noted in PVC board segment which is also called as WPC board. The material price comparison chart prepared by The Ply Reporter on monthly basis was clearly indicating a gradual rise in PVC resin prices. The effect was immensely impacted the input cost of PVC Edge band Tape and WPC/PVC boards in tune to 30% till 31st August say industry people.
The upward trend in PVC resin prices after second half of May, has been gradual and continued till writing this news. The conclusive impact per kg has been estimated to be around Rs 25 a kg, due to which there was a price increase announcement happening in this product category.
Reliance is a major producer of PVC resin in India, besides the Industry also imports from Taiwan, Japan and Africa. As per report, the production of PVC resins has disturbed all over world due to Covid-19 pandemic, which has resulted in Reliance receiving very good orders from overseas market as well. The disruption of domestic as well as international supplies is said to be main reason for the price increase of PVC resins.
According to domestic PVC Edge Band Tape groups and WPC/PVC board producers groups, they are planning to increase their prices further by 5 % in end of October. Producers also fear that the price of PVC resin will increase further because of the disturbance in manufacturing.