News and Events

Indian private-sector conglomerate Reliance Industries on 29 August announced the addition of 1.5mn t/yr of polyvinyl chloride (PVC) capacity in India, effectively doubling India's PVC production to 3.055mn t/yr and reducing its reliance on exports. India currently produces 1.555 mn t/yr of PVC. The country also imported an average of 1.86mn t/yr of PVC from 2018 to 2021, according to GTT data. But exports have remained almost non-existent as local supply is unable to keep up with demand. This implies that India's estimated average PVC consumption is around 3.415mn t/yr for these four years. Japan has been India's top PVC supplier, with India importing 378,000t last year. Indian buyers favour Japanese cargoes as these have 0pc import duties, making them more affordable. Taiwan ranks second at 342,000t, followed by China and South Korea at 296,000t and 264,000t respectively. The new 1.5mn t/yr plant in Jamnagar will shrink India's PVC supply deficit to a mere 365,000 t/yr in 2026, assuming that consumption levels remain the same. India is poised to become almost self-sufficient in 2026 with this new capacity addition. The small shortfall could be fulfilled by Reliance's petrochemical joint venture with Abu Dhabi's state-owned Adnoc in Ruwais. New site plans indicate that the facility would be able to produce up to 300,000 t/yr of PVC, according to Reliance. PVC produced in Ruwais will target the local Middle Eastern markets and India. The Comprehensive Economic Partnership Agreement signed earlier this year will cut Indian PVC import duties on cargoes from the UAE to 5pc from 2026. These duty benefits will be on par with cargoes from southeast Asia, which are also subjected to 5pc import duties, increasing the price competitiveness of cargoes from the UAE.