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 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 ?xml:namespace>
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
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)
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