India PE, PP producers raise prices up to 3.4%

04 March 2008 11:25 [Source: ICIS news]

SINGAPORE (ICIS news)--Indian producers have raised domestic prices of polyethylene (PE) and polypropylene (PP) for the third time this year for March cargoes, by up to 3.4%, on increased crude and naphtha costs and rising import prices, sources close to the producers said on Tuesday.

Prices of PE have been hiked by rupees (Rs) 2-2.30/kg ($0.05-0.06/kg) to Rs69.50-77.80/kg EXW (ex-works, excluding taxes). PP prices have been raised by Rs1.50-1.80/kg to Rs67.10-70.60/kg EXW.

Also driving the price hikes was strengthening demand, following the budget announcement last Friday, said one of the sources.

“Demand had been sluggish as customers delayed purchases in anticipation of a tax reduction in the 2008-09 budget,” said the source.

This week, enquiries have begun to escalate, as inventories were running low, a second source said.

Local producers had cut back on exports to cater to the strengthening domestic demand, a third source said.

Major PE and PP producers in India include Reliance Industries, Haldia Petrochemicals Ltd, and Gail India.

($1 = Rs40.33)

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By: Prema Viswanathan
+65 6780 4359

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