Indian PE, PP hiked by up to 6% on strong demand, tight supply
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,
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.
Major Indian PE and PP producers include Reliance Industries, Haldia Petrochemicals and Gail India.
PlastIndia 2009, which is held every three years, started on Wednesday and ends on Monday.
($1 = Rs48.66)
To discuss issues facing the chemical industry go to ICIS connect
By: Prema Viswanathan
+65 6780 4359
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 |
Related Articles
- 09 Apr 09 11:04 Haldia Petrochemicals runs cracker complex at reduced rates
- 17 Mar 09 09:47 China’s CSPC to complete cracker expansion in H1 ’10
- 25 Feb 09 13:53 Three Indian states get go-ahead to set up petchem hubs
- 18 Feb 09 11:08 South Korea’s Jan PE exports up on weak demand, low China ops
- 17 Feb 09 09:54 India's 2009-2010 interim budget disappoints polymer players
- 10 Feb 09 12:39 Packaging demand for PE, PP still healthy - LyondellBasell
- 12 Feb 09 13:15 India’s Reliance attempts second restart of Nagothane PP plant
- 12 Feb 09 12:41 India’s Cals to produce benzene at proposed Haldia site
- 11 Feb 09 07:13 India’s Haldia mulls delaying cracker expansion works
- 09 Feb 09 08:39 India’s Reliance to start up new PP plant in H2 March
- 06 Feb 09 15:18 India’s Reliance restarts PP plants after 3-week shutdown
- 06 Feb 09 16:02 India's plastics growth slowed by poor productivity - GAIL
- 06 Feb 09 10:16 India PVC rises by 5% on increased demand
- 06 Feb 09 08:16 Indian PS prices hiked by 9% on low imports, better demand
- 06 Feb 09 02:51 SK Energy to raise PP, HDPE production to 100%
- 06 Feb 09 02:27 Japan’s Sun Allomer to run PP plant at 70% in Q1
- 04 Feb 09 18:50 US PE price hike announcements pile up
- 04 Feb 09 08:21 Japan’s Prime Polymer runs PP, PE plants below 60%
- 27 Jan 09 12:32 Europe PE buyers react cautiously to February price targets
- 26 Jan 09 12:04 Europe PP arb opportunities help regional market balance
- 22 Jan 09 21:41 US PE producer postpones hikes to February
- 22 Jan 09 02:54 China’s Huajin to trial run new PE, PP lines in May/June
- 16 Jan 09 17:39 Weak demand limiting US PE price hikes - buyers
- 15 Jan 09 09:52 Reliance hikes PP by 3% for second time in Jan
- 12 Jan 09 13:27 Europe Jan PP talks slow but trend will emerge soon
Latest News
- 19 Jun 13 06:26 Saudi Arabia's SABIC lowers July MEG ACP nomination by $50/tonne
- 19 Jun 13 06:10 Weak rupee, higher duties hurt India demand for PE, PP imports
- 19 Jun 13 06:00 VIDEO - ICIS Asia Lunchtime Bulletin 19 June 2013
- 19 Jun 13 05:28 China’s Qixiang Tengda to use UOP technology for olefin project
- 19 Jun 13 05:00 NOON SNAPSHOT - Asia Markets Summary