PVC Prices Soar in India After Government Tightens Import Rules

The price of PVC Suspension Semi Rigid Grade K67 Ex-Mumbai, increased by 5.8% during the week ending July 24, 2026. The biggest driver behind the weekly price increase was the Government of India's decision to restrict imports of low-priced suspension-grade PVC resin for six months by introducing a minimum import price (MIP). Under the new Directorate General of Foreign Trade (DGFT) notification, imports of suspension-grade PVC resin with a CIF value of USD 0.766/kg or below have been classified as "Restricted," while higher-value imports remain freely permitted for six months. The policy excludes 100% Export Oriented Units (EOUs), Special Economic Zones (SEZs), and imports under the Advance Authorisation Scheme, provided the material is not sold in the domestic market. The announcement immediately reduced expectations of cheaper imported cargoes entering the Indian market and improved pricing confidence among domestic suppliers.

Demand fundamentals also remained supportive during the week. Consumption of PVC suspension-grade resin continued to be driven by steady activity in pipe extrusion, conduit manufacturing, window profiles, and other construction-related applications. Although the peak pre-monsoon construction season has ended, ongoing government investments in housing, sanitation, and urban water infrastructure projects maintained healthy procurement across major industrial centers including Mumbai, Pune, Ahmedabad, Surat, and other western regions. Most converters continued purchasing material to meet ongoing production requirements, while several buyers accelerated procurement following the policy announcement to avoid further PVC price increases.

Supply conditions further tightened the PVC market. Import-dependent buyers faced delays of five to ten days for cargoes arriving from the Middle East and Southeast Asia at major West Coast ports due to monsoon-related logistics disruptions. At the same time, domestic producers did not significantly increase spot allocations, leaving the supply-demand balance in favor of sellers. Traders reported rising secondary market transactions, particularly in Gujarat, as processors with low inventories accepted higher offers to ensure uninterrupted production. Buyers with comfortable inventories remained cautious, but those requiring immediate material had limited alternatives.

The new import policy also follows the ongoing anti-dumping investigation into suspension-grade PVC resin imports from several exporting countries, reinforcing expectations of tighter import availability in the coming months. Since imports account for nearly 63% of India's PVC consumption, the market remains highly sensitive to any disruption in overseas supply.

As per ChemAnalyst, the Indian PVC market is expected to remain firm through the remainder of July. Continued import delays, restricted availability of lower-priced imports, and stable infrastructure demand are likely to keep prices supported.