02 November 2011 11:48 [Source: ICIS news]
SINGAPORE (ICIS)--Indian major Reliance Industries Limited (RIL) reduced its list prices for all of its polyethylene (PE) and polypropylene (PP) grades with effect from 1 November to compete with import prices, a source close to the company and industry players said on Wednesday.
RIL announced late on 31 October a decrease of Indian rupees (Rs) 2.00/kg (Rs2,000/tonne, $41/tonne) for all PP, linear low density polyethylene (LLDPE) film and high density polyethylene (HDPE) injection/pipe grades, Rs2.50/kg for HDPE film/yarn, Rs3.50/kg for low density polyethylene (LDPE) film and Rs1.50/kg for LLDPE rotamoulding, the source close to the company said.
The decreases followed an increase in PE prices in early October and a rise in PP prices in early August.
The revised price is now Rs86.50–87.50/kg DEL (delivered) for LDPE film, while the price of LLDPE film is at Rs76.00–77.00/kg DEL and HDPE film is at Rs77.50–79.00/kg DEL, inclusive of 10.3% excise duty.
PP raffia prices are now at Rs85.50–86.50/kg DEL, while the price for injection grade is Rs85.00–87.00/kg DEL, isotactic PP (IPP) film is at Rs86.50-88.00/kg DEL, biaxially oriented polypropylene (BOPP) film is at Rs86.50-87.50/kg DEL, and block copolymer grade is at Rs88.00-89.50/kg DEL.
“The [Indian] rupee has continued to stay at a depreciated level, which placed the local materials’ prices to be much higher than the import prices. So, we have to reduce our list prices to keep our competitiveness,” the source said.
Other PE and PP producers such as Indian Oil, Haldia Petrochemicals and GAIL followed suit and reduced their respective grades by similar values.
The new import parity of PP raffia and block copolymer now stands at $1,414/tonne CFR (cost and freight) CFR Mumbai and $1,440–1,450/tonne CFR Mumbai respectively, he said.
On 2 November, Saudi PP raffia cargoes are offered at $1,370–1,380/tonne CFR Mumbai, while other material from the Gulf Cooperation Council (GCC) region were sold at $1,360/tonne CFR Mumbai for November shipments, industry players said.
GCC-originated LLDPE film was transacted at $1,240/tonne CFR Mumbai for November parcels. Saudi HDPE film was offered at $1,320–1,340/tonne CFR Mumbai for November lots. Saudi and Iranian LDPE film was booked at $1,375–1,380/tonne CFR Mumbai for November cargoes, they added.
($1 = Rs49.26)
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