01 August 2011 07:26 [Source: ICIS news]
SINGAPORE (ICIS)--Indian polyethylene (PE) and polypropylene (PP) producers have again raised the list prices of their products because of short domestic supply and firmer import prices, industry sources said on Monday.
Reliance Industries Ltd (RIL), GAIL (?xml:namespace>
The new PE prices are at Rs78.50-81.00/kg
The new PP raffia prices are at Rs88.00-89.50/kg
The producers increased their prices after frantic import activity in the last week of July.
Import material was wiped out soon after offers were announced earlier in the week. On 29 July, Middle East cargoes for shipment in August were booked at $1,450/tonne (€1,001/tonne) CFR (cost & freight) Mumbai for HDPE film, $1,440-1,450/tonne CFR Mumbai for linear low density PE (LLDPE) film, $1,620/tonne CFR Mumbai for LDPE film, ICIS reported.
The prices at the low-end of the range were for cargoes from the
Local makers adjusted their PE list prices higher in July by Rs4-7/kg or 4.7-10.0% and PP by Rs4.5/kg or 5.3-5.5% (please see graph below).
“Everyone seems [to be] very optimistic that the uptrend will continue. It was expected that the local producers will raise their offers,” a Mumbai-based trader said.
“There is a high chance that the list prices will increase again in the near future by looking at the tight supply condition. Once the monsoon is over in [the middle of] or late August, demand will revive more significantly to support prices,” a second Mumbai-based trader said.
($1 = Rs44.21, $1 = €0.69)
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