26 May 2011 11:54 [Source: ICIS news]
SINGAPORE (ICIS)--India’s Reliance Industries has adjusted its domestic polyethylene (PE) and polypropylene (PP) prices lower because of persistently soft buying sentiment and to remain competitive in the market, a source close to the company said on Thursday.
It reduced its domestic PE and PP prices by Indian rupee (Rs) 2/kg ($0.04/kg) and Rs3/kg respectively, with effect from 26 May.
Reliance’s new PE prices are at Rs74/kg DEL (delivered) for high density PE (HDPE), Rs75/kg DEL for linear low density PE (LLDPE) and Rs95/kg DEL for low density PE (LDPE) respectively, including excise duty, the source said.
For PP, the new DEL prices for raffia are at Rs88.25-88.50/kg, for injection at Rs88/kg, for impact PP (IPP) film at Rs89.00-89.50/kg and for biaxially oriented PP (BOPP) film at Rs90-90.50/kg, the source added.
Price protection for customers on PE purchases take effect from 26 May, while price protection on PP purchases began at the end of last month.
“We have to adjust our offers lower to remain competitive in the market. Stock levels are on the high side for both local and overseas suppliers, despite weak demand. So, we have to drop offers to draw converters forward,” the source said.
Buying ideas for PP raffia imports have consequently slipped to $1,640/tonne CFR (cost & freight) India Main Port and below, similar with the import parity of low-$1,600s/tonne CFR India Main Port.
Likewise, buying ideas for LLDPE imports were kept in the low-to-mid-$1,300/tonne CFR India Main Port, on par with the import parity.
“Players have been expecting this price correction already and since converters have price protection, players were in no surprise of the price drop,” one trader said.
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