Astral, Epigral Share Price Moves Amid China’s VAT Export Rebate Rollback

The Indian stock market is witnessing significant attention on Astral and Epigral as global policy changes start influencing domestic supply chains. The latest move by China to reduce or eliminate Value-Added Tax (VAT) export rebates across key products has started sending ripples across multiple sectors, especially for PVC resin and plastic pipe manufacturers in India.

Market Performance Snapshot

• PVC prices jump: $580–600/ton to $680/ton following China’s VAT rebate removal.
• Global supply tightening: Potential reduction in Chinese PVC exports by 10–20%.
• Domestic implications: Increased pricing visibility for organized Indian PVC and pipe manufacturers.

These developments have created an environment where stock market participants are closely tracking companies like Astral and Epigral for potential market movements.

China’s VAT Export Rebate Rollback

China’s government announced a phased rollback of VAT export rebates across 249 products:

• Solar modules: April 1, 2026
• Batteries: January 1, 2027
• Key chemicals including PVC, ABS, acetone, acetic acid, phthalic anhydride, glufosinate, acephate, BOPET, PTFE, PNCB

The policy is designed to curb aggressive price competition abroad, stabilize overseas market pricing, and address trade tensions.

Immediate Impacts

• Exporter margins are likely to compress due to absorption of rebate losses (~13%).
• Price pressure could occur in Q1CY26 as exporters may front-load shipments ahead of implementation.
• Domestic companies could see higher raw material costs initially, particularly those dependent on imports.

Domestic PVC Market Dynamics

India imports roughly 2.7 million metric tonnes (MT) of PVC resin annually, with China accounting for approximately 32% of these imports. The rollback of VAT rebates is expected to:

• Reduce the availability of low-priced Chinese PVC.
• Increase domestic PVC resin prices by ~5–10%.
• Ease anti-dumping pressures on Indian manufacturers.
• Provide more predictable pricing for organized players in the PVC and plastic pipe industry.

Product Prices Across Value Chains

The impact of China’s VAT policy has been visible across multiple product categories over the past few months:

• PVC: $580–600/ton to $680/ton
• LiPF6, ABS, acetone, BOPET: Prices up by 10–60%

This price surge reflects the structural shift in global supply and the rebalancing of markets as low-cost Chinese exports become less competitive.

Implications for Astral and Epigral

Both Astral and Epigral are positioned to benefit from these developments:

• Astral: Strong backward integration and established market presence provide resilience amid input price changes.
• Epigral: Expansion in CPVC resin/compound and ECH capacities is likely to support future production and market stability.

The move towards tighter supply and reduced volatility is expected to support pricing visibility for larger, organized manufacturers, while smaller, import-dependent firms may face higher input costs.

Summary

China’s decision to reduce VAT export rebates is more than a trade policy change—it is reshaping market dynamics in India. For domestic PVC and plastic pipe manufacturers:

• Global supply may tighten, lifting domestic prices.
• Organized companies like Astral and Epigral could see improved pricing visibility.
• Short-term volatility is likely but the medium-term outlook appears stable for larger players.

Investors are staying alert as these policy changes unfold, shaping stock movements and trends across India’s market sectors.

Source: Moneycontrol