Dhabriya Polywood - a history waiting to be written?


(Capsule91) #21

coming on a commodity question to you @ragsingh0305

do u think the pricing of a commodity depends on the rm prices of it, or more on the demand and supply gap?

the C2H4 new production lines , imo, will fail to clear the inventories further, if they start passing on the rm prices of ethylene to the bearish market…

views plz


(ragsingh0305) #22

I think it depends on both. The selling price of a commodity products are usually determined by the cost of production of lowest cost producer. Raw material invariably is the largest cost component of a commodity product. Demand supply dynamics do play a critical role too.


(Capsule91) #23

Point…
A rebut question, can a.commodity producer pass on the rm prices when the demand is low?
I guess, thats the case when the demand is high rather…
But ultimately, i agree with u, as the pvc industry continue growth at 8pc cagr, ultimately these short term demand nosedive will be insignificant and if the crude dosent soften or stabilize below 70s, this is indeed a problem, unless dhabriya does something about it


([email protected]) #24

thanks @Capsule91 for your inputs.


(Capsule91) #25

Do u have any coverage on chlorine price trends and demand supply scene there and also calcium carbonate??
I am not finding enough data to do an analysis on these rms…


(Capsule91) #26

To all memebers,

What is the risk of mdf/hdf as a disruption to pvc industry, anyone did any analysis regarding this?


(ragsingh0305) #27

I will try to look for it. However I believe what matters the most in this case is the ability to pass on the cost to the consumer. These feedstocks (RM) are commodities, and are very difficult to form a view on them. If the company does reasonable degree of value add to its products, it can surely pass on the majority of the costs.