23 June 2011 11:15 [Source: ICIS news]
SINGAPORE (ICIS)--Indian producers have reduced their prices of all grades of polyethylene (PE) because of the persistently poor demand and price competition on imports in the domestic market, sources close to the companies said on Thursday.
Reliance Industries, GAIL (India), Indian Oil and Haldia Petrochemicals have reduced their list prices for high density PE (HDPE) film and linear low density PE (LLDPE) film by Indian rupees (Rs) 2/kg (Rs2,000/tonne, $45/tonne). Prices of low density PE (LDPE) film were down by Rs1/kg.
The new prices, which take effect from 23 June, are at Rs72-73/kg ?xml:namespace>
“This is the third price adjustment in June for LLDPE and LDPE film. The demand for these grades is so poor that there is negligible buying interest, despite low stock levels with converters. So these local producers have to drop prices,” a local film converter said.
The lower HDPE prices were implemented for the first time in June.
The price protection, which refers to the new prices that buyers will receive if producers lower their prices, will continue until next Wednesday with effect from 16 June.“Import prices are undercutting the local offers [for HDPE film], so we have no choice but to reduce the offers for HDPE film,” a source close to Haldia said.
Discussions for imported LDPE, LLDPE and HDPE film were heard at $1,525-1,535/tonne CFR (cost & freight) Mumbai for Iranian cargoes, $1,250-1,280/tonne CFR Mumbai for Saudi Arabian parcels and $1,270-1,320/tonne CFR Mumbai for July parcels respectively on Thursday, according to market sources.
($1 = Rs44.79)
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