06 February 2009 08:16 [Source: ICIS news]
NEW DELHI (ICIS news)--Indian polystyrene (PS) producers have hiked domestic prices by 9% due to difficulties in procuring imports, the producers said on Friday.
"Imports have dwindled to a trickle, due to problems faced by customers in opening LCs (letters of credits)," said a source close to an Indian producer on the sidelines of PlastIndia 2009, India’s largest plastics exhibition and conference.
Banks have been reluctant to extend credit to buyers due to liquidity problems arising from the global economic meltdown, he added.
Indian PS prices have been raised by Indian rupees (Rs)4/kg ($0.08/kg) to Rs51/kg EXW (ex-works) for general purpose PS (GPPS) and $57/kg EXW for high impact PS (HIPS).
Strengthening demand has been another factor pushing prices up, said a source close to a second producer. "Our customers, especially from the food packaging and home appliances segment, have at last returned to the market after a long lull, in anticipation of the peak summer buying season," he said.
The rise in styrene feedstock prices has also spurred the rise in prices. Styrene prices in Asia are currently at $670-680/tonne CFR (cost and freight) China, up $10-20/tonne from the levels seen before the Chinese lunar new year holidays which ended last week.
PlastIndia 2009, which is held every three years, began on Wednesday, 4 February, and ends next Monday, 9 February.
($1 = Rs48.70)
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