DCW Ltd. is Likely to Increase CPVC Production in India in the Second Half of FY24

A Chlorinated Polyvinyl Chloride (CPVC) manufacturer DCW Ltd. announced to increase in the domestic availability of CPVC Resin in the Indian market by commissioning a new unit in the country. The company is the domestic producer of CPVC in India, which owns applications in manufacturing hot and cold water pipes and other industrial applications. Indian primary manufacturer, DCW Ltd., is planning to increase CPVC resin capacity by around 10KT. The company estimates that the CPVC project will be commissioned in the second half of FY24.

However, commodity prices dropped in November 2022 owing to the downward price trajectory of feedstock Polyvinyl Chloride (PVC) in India and weak downstream demand fundamentals.

The monthly CPVC prices were low throughout November 2022 in the APAC region. The price for CPVC pipe grade, K-67 was assessed at INR 141000/tonne Ex-Tuticorin (India), backed by the weak downstream offtakes in the APAC region amidst rising inflationary pressure and subdued customer confidence in the Indian building sector. The APAC freight charges and overall raw material costs have been affected by the muted market activity as a result of the September Typhoons in various Asian countries coupled with COVID-19 lockdown measures. The product market continued to follow a negative trend since Q2 as consumers tended to buy on a need basis only amid rising recession and sluggish economic conditions in the global market. Moreover, a decline in the feedstock PVC costs also impacted the pricing dynamics of the product.

As per the ChemAnalyst prediction, the CPVC prices are anticipated to increase in January 2023 with an increase in the downstream demand in the construction sector, a rise in the production activity, and limited stock availability with the sellers. Moreover, the primary CPVC manufacturer DCW Ltd. anticipated that the commodity downstream segment would stabilize in the first Quarter of 2023.