Reliance increases India PVC prices by 2.5%
20 November 2006 06:24 [Source: ICIS news]
SINGAPORE (ICIS news)--Reliance Industries increased the price of polyvinyl chloride (PVC) in India by 2.5%, or Rs1/kg, to Rs 41.5/kg ex-factory on the back of resurgent domestic demand after a long lull, a company source said on Monday.
The price increase was effective from Friday, 17 November, he added.
Buying activity has picked up over the past week in both the irrigation and construction segments, producers, traders and buyers said.
Demand improved in November with the end of the extended monsoon, supporting the price increase.
Prices of imported cargoes in India have also risen in the last two weeks by $10-30/tonne, to $820-840/tonne CFR (cost and freight) India on the back of improved demand and rising Asian prices, after falling sharply by $70-90/tonne in late October to $800-830/tonne.
The November rebound follows weak demand in October.
In October, Reliance pushed through two price reductions of Rs1/kg and Rs3/kg, in an effort to revive buying activity. It also offered price protection in early that month as an additional incentive to buyers who were adopting a wait-and-see attitude.
Reliance's price protection move, which enabled customers to benefit from future price cuts retro-actively, was withdrawn in mid-October, after the second price reduction came into force.
However, demand in India failed to pick up in October despite the price reductions and price protection, producers. The continuing lacklustre demand was mainly due to the extension of the monsoon season in the country, which normally tapers off by end-September, the Reliance source said.
By: Prema Viswanathan
+65 6780 4359
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