02 February 2010 13:20 [Source: ICIS news]
SINGAPORE (ICIS news)--Indian producers have raised their domestic prices of polyethylene (PE) and polypropylene (PP) to keep pace with the surge in import offers that have resulted from moderately good demand and restricted supply, industry sources said on Tuesday.
Producers raised their PE and homopolymer PP prices by Indian rupees (Rs) 1/kg ($0.02) to Rs79-88/kg EXW (ex-works) and Rs77-80/kg EXW respectively, according to sources.
The price increases for February cargoes followed three price hikes in January.
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Prices of imported PP were $20-60/tonne higher at $1,340-1,380/tonne CFR India.
The company was in the process of restarting the plants, which were shut down for maintenance work at the end of October last year, a source close to the company said.
The better-than-expected demand and snug supply due to production issues belied earlier expectations that the rally of PE and PP prices would reverse in February.
Most market players said they were surprised by the level of demand and tight supply.
“We didn't expect demand for raffia to be so good,” said an India-based PP converter.
($1 = Rs48.18/$1 = €0.72)
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