PVC import floor raises costs for pipe makers, strengthens domestic resin producers
A six-month minimum import price of $0.766/kg for S-PVC resin has reportedly lifted domestic prices from Rs 82/kg to Rs 93/kg, pressuring pipe-making MSMEs and potentially increasing housing and irrigation project costs. Reliance Industries, which holds 51% of domestic PVC capacity, stands to benefit ahead of new capacity from Reliance and Adani.
What happened
Reliance Industries · India's six-month S-PVC import floor is lifting resin costs for pipe-making MSMEs, potentially raising housing and irrigation project
Key facts
- Six-month minimum import price restriction on S-PVC resin
- MIP of $0.766/kg; imports below this threshold are restricted
- Domestic resin price reportedly rose from Rs 82/kg to Rs 93/kg after the notification
- India PVC capacity: 1.7 MMT versus demand of 4.7 MMT
- Reliance holds 51% of domestic PVC capacity
- PVC demand grew at 6.2% CAGR between FY20 and FY25 and rose 11% in FY25
- Reliance plans 1.5 MMT annual PVC capacity by FY2026-27
- Adani's Mundra complex is planned at 2 MMT, with an initial 1 MMT phase targeted for FY2027-28
Why this matters
Pipe and building-materials companies may pursue resin supply agreements, vertical integration, or consolidation to reduce exposure to concentrated domestic PVC pricing.
Also reported by
- Indian Express · Business — 1h after first sighting