India PE prices rise 2.9% on feedstock costs

09 April 2008 12:42  [Source: ICIS news]

SINGAPORE (ICIS news)--Indian producers have raised domestic prices of polyethylene (PE) for April cargoes by up to 2.9% on rising naphtha feedstock costs, the sellers said on Wednesday.

 

Indian producers' margins have been hit by the proposal to reintroduce the 5% import duty on naphtha for polymer production announced in the 2008-2009 budget.

 

PE prices on an ex-works basis were hiked by rupees (Rs) 1-2/kg to Rs70.50-79.80/kg ($1.8-2/kg).

 

PE prices were raised a couple of days after the hike in polypropylene (PP) and polyvinyl chloride (PVC) prices, as PE producers studied the impact of excess buying in March.

 

“We decided to raise PE prices, as the surplus March inventories have been more or less absorbed by the market,” a producer said.

 

Major PE producers in India are Reliance Industries, Haldia Petrochemicals and Gail India.

 

($1 = Rs39.90)

 

For more on polymers visit ICIS chemical intelligence

 

By: Prema Viswanathan
+65 6780 4359

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