India sellers hike PE, PP up to 7% on trade surge

02 December 2008 09:58  [Source: ICIS news]

SINGAPORE (ICIS news)- Indian producers have raised polyethylene (PE) and polypropylene (PP) prices by 5-7% due to improved demand, the producers said on Tuesday.

"Buying activity has picked up in the past two weeks, providing scope for raising prices and improving our squeezed margins," said a polymer producer.

Low inventories among Indian converters and a perception that prices had bottomed out resulted in a trading surge last week, a polymer trader said.

Prices of PE and PP are currently at rupees (Rs) 40-45/kg EXW (ex-works) following an increase of Rs1.50-3/kg and a hike of Rs2/kg last week.

"However, compared with the Rs17-18/kg price decline we saw in the earlier weeks, the price hikes announced last week and this week are minimal," said a second polymer producer.

A PP converter said that it had no option but to accept the price hikes as its inventories were low and it needed to make some purchases urgently.

($1 = Rs50.35)

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By: Prema Viswanathan
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