India makers cut LDPE, LLDPE prices by up to Rs4/kg, HDPE unchanged

16 June 2011 09:44  [Source: ICIS news]

SINGAPORE (ICIS)--Producers in India have announced price reductions for low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) to boost buying activity amid a quiet market, sources close to the companies said on Thursday.

Reliance Industries Limited (RIL), GAIL (India), Indian Oil and Haldia Petrochemicals cut the list prices for their LLDPE film by rupee (Rs) 1/kg (Rs1,000/tonne, $22.3/tonne), while their prices for LDPE film were cut by Rs4/kg

This is the second price reduction for the two products this month.

The new PE prices are at Rs74/kg DEL (delivered) for LLDPE film and Rs89/kg DEL for LDPE film, while the price of HDPE film remains stable at Rs75/kg DEL, sources said.

The price protections for all local PE purchases resumed on Thursday, after it was terminated on 2 June.

“We have to boost our customers’ confidence, otherwise they will not want to book new material,” a source close to GAIL said.

“There is price competition with imported material as well and to ease our high stock level, we have to introduce further price reduction,” a source close to Indian Oil said.

Discussions for imported LDPE, LLDPE and HDPE film on Thursday were heard at $1,520-1,600/tonne (€1,079-1,136/tonne) CFR (cost & freight) Mumbai, $1,270-1,300/tonne CFR Mumbai, and $1,300-1,340/tonne CFR Mumbai respectively, according to market sources.

($1 = Rs44.8, $1 = €0.71)

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By: Ong Sheau Ling
+65 6780 4359

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