03 June 2008 04:46 [Source: ICIS news]
By Prema Viswanathan
SINGAPORE (ICIS news)--Indian polymer makers have hiked domestic prices of their products by up to 7.7% for the third time in a month as feedstock costs surged due to a sharp depreciation in the value of the rupee (Rs) against the dollar, producers said on Tuesday.
Polystyrene (PS) increased by Rs4/kg to Rs76/kg for general purpose PS (GPPS) and Rs79/kg for high impact PS (HIPS).
And polyethylene (PE) went up by Rs4/kg to Rs57.50/kg and Rs78.80-88.30/kg.
"The rupee's value against the US dollar has depreciated by 7% in the past month, and this has exerted severe pressure on Indian producers' margins," a PP producer said.
Indian producers' margins had already been hit by the 5% import duty on naphtha for polymer production announced in the 2008-2009 budget, a PE producer said.
“We have to make the most of the peak demand season, which will end with the advent of the monsoon next month,” a PVC producer said.
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“Rising prices in the international market and surging feedstock costs have made customers realise that they can no longer resist the price hikes,” a PS producer said.
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