05 February 2009 13:09 [Source: ICIS news]
NEW DELHI (ICIS news)--Indian polyolefins producers have raised domestic prices of polyethylene (PE), polypropylene (PP) and polyvinyl chloride (PVC) by up to 6% on strong demand and limited supply, sources close to the companies said on Thursday.
"Demand is very robust and availability is restricted, so producers decided to hike prices while the going is good," said one of the sources, speaking on the sidelines of PlastIndia 2009, ?xml:namespace>
However, plastic processors were extremely distressed by the latest price hikes. "If prices of polymers rise so frequently, how are we to make pricing decisions on our plastic products?" said a processor.
A second converter said that there was no justification for the latest price hikes. "Feedstock prices have not risen sharply enough for polymer producers to jack up prices. They are using the current tightness of supply and low inventories among customers to their advantage," he said.
A second source close to a producer dismissed the processors' complaints. "We didn't hear any protests from processors when polymer prices crashed late last year, so why are they so aggrieved now?" the source said.
Indian PE and PP prices have been hiked by Indian rupees (Rs) 3-3.5/kg (6-7 cents/kg) and Rs2/kg respectively to Rs60-65/kg EXW (ex-works) and Rs64-65/kg EXW.
PlastIndia 2009, which is held every three years, started on Wednesday and ends on Monday.
($1 = Rs48.66)
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