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Informist, Thursday, Dec. 4, 2025

 

By Rajesh Gajra

 

NEW DELHI – Falling international polyvinyl chloride prices over the last couple of months are likely to result in an on-year decline in DCM Shriram Ltd.'s realisations from the PVC resins segment in the December quarter, its Chairman and Senior Managing Director Ajay Shriram told Informist. "The international (PVC) prices have fallen from around $800 (per tonne) 3-4 months ago to around $600 (currently), because China is dumping," Shriram said. Imported PVC resins accounted for 60% of domestic consumption for the 12 months ended September 2023, according to an Aug. 14 anti-dumping final finding notification on imports of PVC suspension resins by the Directorate General of Trade Remedies.

 

The commerce and finance ministries seemingly did not accept DGTR's recommendation to impose varying duties on PVC resin imports, ranging from $122 per tonne to $177 per tonne, since there was no government notification within the three months following the DGTR's final finding report. Since the expiry of the three-month timeline in mid-November, Chinese suppliers have increased their dumping of PVC at low prices.

 

The dumping of PVC is posing "a very big challenge" for domestic PVC manufacturers, putting pressure and threatening their viability, according to Shriram. While the company will get a proper figure on the impact on its PVC realisations at the end of the December quarter, the current PVC prices and realisations are "definitely low," he said.

 

The company had reported an on-year decline in PVC realisations over the trailing three quarters, according to data from the company's quarterly earnings investor presentations. An on-year decline in the December quarter will mark the fourth consecutive quarter of decline in PVC realisations. The company had reported year-on-year falls in PVC realisation of 12.5% in the September quarter, 16.7% in the June quarter, and 2.6% in the March quarter. The PVC realisation had increased 2.9% on year in the December quarter last year.

 

On the volume front, growth is happening for the PVC segment, Shriram said. "The advantage is that the economy is going ahead. We (India) had 8.2% GDP growth in the last quarter," he said. DCM Shriram had reported on-year PVC volume growth of 28.6% in the September quarter and 12.2% in the June quarter. The segment's volume, however, fell 10% on year in the March quarter.

 

"But (domestic PVC manufacturing) industry's viability is the main question," Shriram said, referring to the falling prices and realisations. "Unfortunately, anti-dumping duty (on PVC) did not happen," he said. "We are actually looking at closing some (PVC) factories because of the pressure which is there," he said.

 

Shriram said his company and other peers are discussing with the government on how they can apply for anti-dumping duties again and go through the cycle one more time. It was on a joint application by DCM Shriram, Chemplast Cuddalore Pvt. Ltd., and DCW Ltd. that DGTR had issued its Aug. 14 final finding report.

 

PVC resin is part of DCM Shriram's vinyl business, which also includes calcium carbide and polymer compounds. The company manufactures "PVC resin through the calcium carbide route as against the ethylene route, which is being followed by most of the countries worldwide with the exception of China," the company had said in its FY25 annual report.

 

DCM Shriram views its chemicals and vinyl business as highly integrated with chemicals operations at Bharuch in Gujarat and Kota in Rajasthan, and vinyl operations at Kota. The company's chemicals business manufactures caustic soda, chlorine, hydrogen peroxide, aluminium chloride, bleaching powder, and other products. For Apr-Sept, combined chemicals and vinyl revenue accounted for 34% of the company's total revenue, with sugar and ethanol, building solutions, and agri products as the other key segments.

 

In the September quarter, the company reported a 10% increase in its consolidated revenue from operations to INR 34.3 billion and a 2.5 times rise in consolidated net profit to INR 1.6 billion. On Thursday, the company's shares ended at INR 1,227 on the National Stock Exchange, up 0.5% from the previous close.  End

 

US$1 = INR 89.98

 

Edited by Saji George Titus

 

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