How India BIS Certificate to Influence China PVC Powder Export?
Preface: The relevant departments of India issued the 2024 PVC quality restriction requirements on February 26, 2024, which will take effect after the expiration of 180 days from the date of publication. After the requirement comes into effect, all PVC resins exported into India must be BIS-certified. This means that suppliers need to obtain this certificate to sell PVC in India. The Indian market is China’s main PVC export place of PVC, so market players are concerned about the news.
In recent years, China’s PVC powder export volume increased significantly, and India has become China’s main export destination. Therefore, the relevant policies of PVC powder in the Indian market are closely related to China’s PVC powder export situation. Recently, the relevant departments of India issued the latest requirements: all PVC exported into India must obtain the BIS certificate.
BIS certificate is short for BIS certification mark and is awarded by the Bureau of Indian Standards. BIS certificate refers to the process of testing and auditing products in accordance with Indian BIS standards and obtaining a certificate of conformity. In India, BIS certification is mandatory and all products sold in the Indian market must be BIS certified in order to be legally sold.
The main process of BIS certificate includes: 1. Submission of application: applicants need to submit an application form to BIS and provide relevant documents; 2. Factory audit: BIS will send auditors to audit the factory to ensure that the production process meets the requirements of the Bureau of Indian Standards; 3. Product testing: After passing the audit, the product needs to be sent to the designated laboratory for testing, and the laboratory will conduct a comprehensive test on the product to confirm that it meets the requirements of the Bureau of Indian Standards; 4. Certification Approval: If the product passes the test, BIS will issue the certificate and allow the product to be sold in the Indian market. 5. Annual supervision and audit: After certification, it is necessary to accept the supervision and audit of BIS every year to ensure that the production process and product quality always meet the requirements of the Bureau of Indian Standards.
China’s PVC enterprises actively carry out certification work.
BIS certificate is not difficult to pass, but the process is relatively cumbersome and the waiting time is relatively long. In Q4, 2023, some PVC enterprises submitted materials that BIS certificate needed. Wanhua Chemical, Qingdao Haiwan Group and Tianjin Dagu Chemical have gotten the serial number and are waiting for factory inspection. However, according to the enterprises in China, according to the current progress, the probability of China’s PVC enterprises getting the certificate in September is small.
The progress of BIS certificate may have a greater impact on China’s PVC exports.
India is the most important importer of international PVC resources. In recent years, the Indian market has entered a new round of capital expenditure cycle, so the demand for basic chemical feedstock is significantly amplified, and this trend may remain for a long time. Chlor-alkali chemical industry is a high-energy consumption industry, which has high requirements for electricity, so the expansion of chlor-alkali capacity in India has been greatly affected. Therefore, India needs to rely heavily on imports. From India’s PVC import data, 2020-2023 imports continued to grow, India's PVC imports reached 3,204.7kt in 2023, an increase of 69.66% Y-O-Y.
China's PVC enterprises seize the opportunity, the volume of exports to India in recent years has also grown rapidly. From 2019 to 2023, China’s exports to India compound growth rate of as high as 103%. According to the GACC, in 2023, China’s PVC exports to India 1,092.9kt PVC powder, accounting for 48.08% of China’s total exports.
From the current India BIS certificate time requirements, from September 1, 2024 all PVC exported into India must have BIS (ISI mark) certificate. The progress of China’s BIS certificate is relatively slow, which will affect China’s PVC exports, but according to market conditions, India’s policy does not rule out the possibility of postponing the implementation, the specific situation is concerned about the follow-up information of SCI.
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