PVC price uptrend continues with another hike of Rs6/kg, or 5.4%, w.e.f. 18th Dec’20. This is the sixth hike in PVC prices in Q3FY21 (+28.5%) after an increase of Rs14.5/kg, or 18.9%, in Q2FY21. The rally, which started with sharp spurt in May’20 and Jun’20, has now extended into Q3FY21 as well. PVC prices, which are now at Rs117.3/kg, have risen 78.9% since 1st May’20. The surge has been largely led by sustained supply-side issues globally. The record high prices of PVC resin are likely to provide a major fillip to organised PVC pipe manufacturers. This is of even greater significance given that consolidation is expected to gather pace as regional and unorganised players continue to face issues w.r.t. polymer sourcing and higher working capital requirements. We prefer Astral Poly Technik (ASTRA) over Prince Pipes and Fittings (PPF) and Supreme Industries (SI). – Global supply shortage pushes PVC prices to new highs with another hike of Rs6/kg. With uptic...