18 November 2011 07:53 [Source: ICIS news]
SINGAPORE (ICIS)--India’s Reliance Industries Limited (RIL) has raised its domestic list prices of polyethylene (PE) and polypropylene (PP) for the second consecutive week by Indian rupees (Rs) 1.00-1.50/kg (Rs1,000-1,500/tonne, $20-29/tonne) to reflect the depreciating local currency, industry sources close to the company said on Friday.
RIL announced late on 16 November an increase of Rs1/kg for all PP grades and on 17 November, an increase of Rs1.00-1.50/kg for the prices of all PE grades, except for that of high density PE (HDPE) yarn grade.
The new PE prices are at Rs89.50–90.50/kg ?xml:namespace>
The prices of HDPE film are at Rs80.50–82.00/kg
The revised PP prices are at Rs87.50–88.50/kg
The prices of biaxially oriented polypropylene (BOPP) film are at Rs88.50-89.50/kg
“The recent [fluctuation] in the rupee is the key reason for adjusting the list prices,” a source close to RIL said.
“The higher list prices are supported by the healthy downstream film industry,” the source added.
The price increases are within the expectations of Indian market players, leading the market to open on a firm note earlier this week.
In addition, the buying ideas heard for imports were higher, but domestic goods remain more attractive because of the currency advantage, traders based in Mumbai said.
On 18 November, converters’ buying ideas for LDPE film imports were heard at $1,400-1,420/tonne (€1,036-1,051/tonne) CFR (cost & freight) Mumbai, while those for LLDPE film were heard at $1,280-1,300/tonne CFR Mumbai.
Their buying ideas for HDPE film were heard at $1,300-1,320/tonne CFR Mumbai and $1,390-1,420/tonne CFR Mumbai for PP raffia, in line with the higher domestic prices.
On 18 November, the new import parities quoted by RIL were at $1,460/tonne CFR Mumbai for LDPE film, $1,325/tonne CFR Mumbai for LLDPE film and $1,360/tonne CFR Mumbai for HDPE film, while that for PP raffia is at the low $1,400s/tonne CFR Mumbai.
RIL is not planning to lower the prices because of robust domestic demand, sources close to the company said.
However, the Indian major is uncertain about increasing the prices further because of the poor economic environment in the eurozone.
($1 = Rs50.96, $1 = €0.74)
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