India’s Reliance Industries cuts PE, PP prices by up to Rs2/kg

01 June 2011 15:22  [Source: ICIS news]

SINGAPORE (ICIS)--Reliance Industries will reduce its domestic list prices of polyethylene (PE) and polypropylene (PP), with effect from 2 June, because of lower import prices for June shipments and continued weak demand, a source close to the company said on Wednesday.

The lower PE and PP prices, which would fall by as much as Indian rupee (Rs) 2/kg ($0.04/kg), mark the company’s second consecutive weekly price reductions.

The Indian petrochemical major will lower its linear low density polyethylene (LLDPE) film and low density polyethylene (LDPE) film prices by Rs2/kg to Rs73/kg DEL (delivered) and Rs93/kg DEL, respectively, including excise duty, the source said.

However, Reliance Industries will not change its price of high density polyethylene (HDPE) film, which is currently at Rs74/kg DEL.

“HDPE [film] prices were unchanged, because southeast Asian [prices] have only marginally decreased,” an industry source said.

Reliance’s new PP prices for raffia will be at Rs86.25–86.50/kg DEL, down by Rs2/kg, and there will be similar reductions for injection and impact PP film prices to Rs86/kg and Rs87–87.50/kg, respectively.

The price of biaxially oriented polypropylene (BOPP) film will be reduced by Rs1.5/kg to Rs88.50–89/kg, the source added.

Reliance’s protections on PE and PP prices for its customers will be stopped from 2 June, the source added.

“Local makers are under pressure, as the polymer imports are priced much lower than expectation. We can see that producers everywhere are facing problems in selling, so they have to lower offers to attract buyers,” a trader said.

Import prices of HDPE and LLDPE film were discussed on Wednesday at $1,330–1,360/tonne CFR (cost and freight) Mumbai, while PP raffia was discussed at $1,640–1,670/tonne CFR Mumbai, according to market sources.

($1 = Rs44.82)

For more on polyethylene and polypropylene, please visit ICIS chemical intelligence
For more on Reliance Industries, visit ICIS company intelligence

By: Ong Sheau Ling
+65 6780 4359

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