India's Reliance lowers LDPE, LLDPE list prices on China's cue

19 August 2011 08:39  [Source: ICIS news]

SINGAPORE (ICIS)--Indian major Reliance Industries Ltd (RIL) has lowered its list prices for linear low density polyethylene (LLDPE) and low density PE (LDPE) with effect from 18 August on prevailing soft prices in China, a source close to the company said on Friday.

RIL announced a decrease of Indian rupees (Rs) 2/kg ($43/tonne) for LLDPE film and Rs1/kg for LDPE film.

LLDPE film prices now stand at Rs77.00-79.00/kg DEL (delivered), while LDPE film prices are at Rs89.00-89.50/kg DEL, inclusive of a 10.3% excise duty.

The price adjustment was the first decrease after weeks of PE price hikes since the beginning of July.

Prices of LDPE lamination and all high density PE (HDPE) grades were rolled over from the last raise on 1 August amid unchanged market fundamentals.

The list prices of HDPE film were at Rs78.50-81.00/kg DEL.

“There will be an influx of a significant amount of LLDPE to arrive the factories once the Nhava Sheva port congestion is eased by next week. This will weigh on prices,” a Mumbai-based trader said.

“As the international LLDPE market has been softening, we have to make adjustments accordingly to keep our long-term competitiveness,” a source close to RIL said.

Import prices in China have slipped to close to $1,300/tonne (€910/tonne) CFR (cost & freight) from last week, on the back of ongoing price falls in the LLDPE futures market

On 19 August, offers of Saudi material by local traders were heard at $1,420-1,440/tonne CFR Mumbai, but there were no takers.

The equivalent import parity for RIL prices are at $1,620/tonne CFR Mumbai for LDPE film, $1,400/tonne CFR Mumbai for LLDPE film, $1,750/tonne CFR Mumbai for LDPE lamination, $1,450/tonne CFR Mumbai for HDPE film, $1,430/tonne CFR Mumbai for HDPE blow moulding, $1,420/tonne CFR Mumbai for injection and $1,500/tonne CFR Mumbai for HDPE yarn.

($1 = Rs45.72, $1 = €0.70)

By: Ong Sheau Ling
+65 6780 4359

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