02 December 2008 09:58 [Source: ICIS news]
"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)
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|