China Imports All-Time High PVC From India In June Amid Border Tension In Eastern Ladakh

  • 30-Jul-2020
  • China Imports All-Time High PVC From India In June Amid Border Tension In Eastern Ladakh

Giving rise to an anomalous situation, China imported record high PVC from India in June at a time when the two countries are locked in a tussle at the border amid calls for reducing trade flows.

China imported a record high PVC 27,207 metre of PVC from India in June -- more than five times compared to 5,174m recorded in May as India accelerated PVC exports during the Covid-19 lockdown, Global Rubber Markets reported.

It is a rare move as the Indian PVC market is net short by close to 2 million m/year. During the lockdown, India's PVC demand plunged, prompting cancellation of PVC deliveries to India. Suppliers had to move their cargoes to China to clear excess supplies, it added.

Looking forward, market sources said China's PVC imports from India would likely slow as the lockdown ended early-June. For June delivery, market participants negotiated in May.

Polyvinyl Chloride (or PVC for short) is the third most widely produced plastic in the world following polyethylene and polypropylene, and it is used in a wide variety of applications in industry, construction, agriculture, consumables, packaging, power production and public utilities. PVC is highly durable, resistant and flexible, making it useful for use in clothing, pipes, insulation and many other areas.

To curb imports, Indian companies are submitting proposals to the government on ways to reduce import dependence on China.

The record exports of PVC from India come at a time when the government is looking at ways to curb imports from China and has banned several Chinese apps and companies.


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