India extends BIS deadline for PVC imports to December

India has extended the implementation of Bureau of Indian Standards (BIS) quality controls on polyvinyl chloride (PVC) homopolymer imports into India from 26 August to 24 December 2024.

The notice was published in the Gazette of India on 23 August. The initial proposal from India's Department of Chemicals and Petrochemicals (DCP) was submitted on 11 August 2023, with an implementation date of 26 August communicated to the wider market in February 2024. As of this month, only 12 PVC production units outside of India are currently listed as being BIS-certified, meaning they would be able to supply PVC into India after the BIS deadline, but many other key exporters to India are still waiting for their certification to come through. Some are expected to receive their certification in September, but the majority of production units that typically export to India have yet to be audited by BIS agents as of the time of writing.

Indian PVC producers are also required to receive BIS certification before the deadline, with most having already received approval from BIS agents. But the Indian PVC market remains net-short and in need of imports, brewing expectations among most market participants in recent months that an extension to the BIS was likely since most major suppliers had yet to receive approval or audits.

Further upstream, market participants are currently waiting for BIS quality controls to be applied on imports of ethylene dichloride (EDC) and vinyl chlorine monomer (VCM) — two major feedstocks used to produce PVC in India — on 12 September.

Changes in import shares

The Indian PVC market recorded historically high import demand in 2023, with imports totalling over 3.2mn t/yr, according to GTT data. Latest trade data for 2024, which only indicates imports between January and June, shows that India has imported over 1.5mn t/yr of PVC as of June, just under the halfway mark for 2023.

Most origins recorded growth in India's PVC import share in 2023, with the most notable being China, North America and the remainder of northeast Asia. The share of imports from northeast Asia — excluding China — into India grew by 47pc in 2023, while China almost doubled its import share, and North America almost tripled this during the same time period.

PVC import growth from China in 2023 and 2022 was mainly denoted by higher carbide-based PVC imports into India, which tends to be cheaper than conventionally and globally produced ethylene-based PVC. BIS quality controls on PVC imports will effectively remove supply of PVC containing a residual VCM content above two parts per million, which is common in carbide-based PVC specifications.

An extension of BIS quality controls on PVC could potentially bode well for total import growth into India in 2024, with the potential for similar results as 2023, as the country estimates PVC consumption in the construction and agricultural sectors to remain strong in the coming years. But the possibility of further PVC import restrictions remains likely in the medium-term, as new Indian PVC production capacities are set to come on line between 2026-30. In a separate investigation, Indian authorities are looking to implement potential anti-dumping duties on suspension PVC (s-PVC) imports into India, but the result of this investigation has yet to be finalised. This could potentially restrict import growth from North America, northeast Asia and other major export origins, creating more competitiveness for imports into India as the country looks to become self-sustained on PVC supply.

By Michael Vitiello

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