Astral, Finolex, Supreme Industries, DCW shares jump over 6% on Monday; Here’s why

Shares of plastic pipe stocks Astral Ltd., Finolex Industries Ltd. and Supreme Industries Ltd. gained up to 6% on Monday, August 14, after the Directorate General of Trade Remedies (DGTR) recommended imposing anti-dumping duty on imports of PVC resin for five years.The same is positive for plastic pipe players as the imposition would lead to the stabilisation of the key raw material PVC resin’s prices, which will then lead to normalisation of channel inventory.

Plastic pipe distributors and channel partners are expected to begin restocking, which should benefit P&F players.

The recent price volatility in PVC resin prices has impacted plastic pipe companies, channel destocking and impacted sales volumes as well.
Brokerage firm Prabhudas Lilladher is of the view that companies such as Astral, Finolex Industries and Supreme Industries would be the key beneficiaries of the likely imposition of the anti-dumping duty, curbing volatility and bringing stability in prices.It should drive inventory gains in the near term and support sustained market share expansion over the long-term, it said.

Here’s how the duty ranges for producers in the following countries:

• China: $122 –$232/MT
• USA: $ 72 – $ 284/MT
• Indonesia: $ 55– $ 204/ mt
• Japan: $49 – $148/ MT
• Korea: $46 – $169/ MT
• Taiwan: $22 – $205/ MT
• Thailand: $60 – $193/ MT

Shares of Astral, Supreme Industries and Finolex Industries were trading up to 4.7% up around 12.50 pm on Monday.

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