MOSCOW (MRC) -- Japan's polyvinyl chloride (PVC) exports fell 5.9% month on month in May to hit a 13-month low of 42,212 mt, amid India's partial lockdown, reported S&P Global with reference to the latest data by Japanese Customs June 30.
From a year earlier, the exports fell 10.8%.
Around half of Japan's monthly exports go to India, where it enjoys zero import tax. Japan's PVC exports to India also hit a 13-month low of 22,310 mt in May as partial lockdown in India amid surging COVID-19 cases lowered PVC buying appetite.
India was hit by the second wave of the coronavirus pandemic in May, which resulted in partial lockdowns in major cities. India's buying appetite for PVC cargoes diminished quickly as economic activities slowed down amid partial lockdowns.
Market sources said India started recovering from the second wave in June. However, the sources expect a slower recovery.
We remind that as MRC informed earlier, Indian refiners, anticipating a lifting of US sanctions, plan to make space for the resumption of Iranian imports by reducing spot crude oil purchases in the second half of the year. The world"s third-largest oil consumer and importer halted imports from Tehran in 2019 after former US President Donald Trump withdrew from a 2015 accord and re-imposed sanctions on the OPEC producer over its disputed nuclear programme.
According to MRC's ScanPlast report, Russia's overall PVC production reached 346,100 tonnes in the first four months of 2021, down 1% year on year. All producers decreased production volumes over the reported period, with the exception of the Bashkir Soda Company.