Indian producers hike local PE, PP prices on high import values

18 February 2011 08:37  [Source: ICIS news]

SINGAPORE (ICIS)-Indian producers have hiked domestic prices of polyethylene (PE) and polypropylene (PP) by up to rupees (Rs) 2000/tonne ($44/tonne), or 2.5%, to catch up with high import prices, market sources said on Friday.

“Local prices in India for PE and PP have been lagging behind import prices, prompting Indian producers to raise prices,” said a source.

Rising feedstock costs, strong demand and tight supply lent further support to the price hikes, the source added.

Prices of high density polyethylene (HDPE) and low density polyethylene (LDPE) were hiked by Rs2000/tonne to Rs75,500/tonne delivered (DEL) and Rs95,200/tonne DEL respectively, while linear low density polyethylene (LLDPE) prices increased by Rs1,500/tonne to Rs77,000/tonne DEL.

Prices were also hiked by Rs2,000/tonne to Rs 85,500/ronne DEL for raffia grade PP, Rs 85,300/tonne DEL for injection grade PP, Rs 86,500/kg DEL for film grade PP and Rs 92,500/tonne DEL for copolymer grade PP.

Prices of imports, however, continued to hover above domestic price levels despite the price hikes.

Prices of HDPE film, for instance, are around $1,350-1,360/tonne CFR (cost & freight) Mumbai in the domestic market on an import parity basis, while prices of imported material are at $1,390-1,400/tonne CFR Mumbai.

($1 = Rs45.20)

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By: Prema Viswanathan
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