PVC Pipe prices were hiked by Rs 6 per kilogram or around 5 percent. This is the third price hike in Q4FY21 and this is the longest rally in price hike that the industry has seen. Prices since May 1, 2020, have doubled. This is led by the supply shortage and now the US cold wave has led to the further shutdown of plants causing a supply squeeze.

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Nihar Chheda, Associate Vice President-Corporate Strategy at Prince Pipes and Fittings said, “There has been a significant rally in PVC prices, which used to trade around Rs 70-75 per kg is now at around Rs 120-125 per kg. So it is a major increase in terms of pricing of PVC.”

He added, “This sharp rally has come due to a global shortage in PVC which means that a lot of the small manufacturers at the organised and unorganised level have major issues in terms of supply security and since we have a very strong supply security relative to the industry it is a good time to be making market share gains.”

On agricultural demand, Chheda said, “65 percent of our portfolio is building material and 35 percent approximately would be agriculture. On the agricultural side, we do see a slight postponement in demand at the industrial level but this trend of this tightness is going to continue for a few months.”

On Telangana Plant, Chheda said, “We have commenced commercial production at Telangana ahead of schedule. It is going to be a phase-wise increase in capacity. Eventually, after 2-3 years, this is will be around 50,000 tonnes of installed capacity which takes the overall number by around 20 percent.”

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(Edited by : Ajay Vaishnav)

First Published:Mar 4, 2021 10:39 AM IST