India’s RIL cuts PP prices on lower import offers, volatile rupee

08 December 2011 07:55  [Source: ICIS news]

SINGAPORE (ICIS)--India’s Reliance Industries Limited (RIL) has reduced its domestic list prices for polypropylene (PP) by Indian rupees (Rs) 1.00-2.00/kg (Rs1,000-2,000/tonne, $19-39/tonne), industry sources close to the company said on Thursday.

This is in line with lower import offers announced late last week and the slight appreciation in the local rupee, the sources added.

RIL announced to customers late on 7 December a decrease of Rs1.00/kg for block copolymer PP and Rs2.00/kg for homopolymer PP, the sources said.

The revised PP prices are at Rs91.50–92.50/kg DEL (delivered) for raffia grade material, while the prices of injection grade product are at Rs91.00–93.00/kg DEL.

The prices of isotactic PP (IPP) film are at Rs92.50-94.00/kg DEL.

The prices of bi-axially oriented polypropylene (BOPP) film are at Rs92.50-93.50/kg DEL and  Rs93.00-94.50/kg DEL for block copolymer grade, inclusive of a 10.3% excise duty with effect from 8 December.

On 8 December, the offers of Middle East-origin raffia cargoes were unchanged for a week at $1,360-1,400/tonne (€1,020-1,050/tonne) CFR (cost & freight) Mumbai for December shipments, but were down by $20-30/tonne from the previous week.

The offers of Asian and block copolymer parcels were heard at $1,450-1,480/tonne CFR Mumbai for December shipments.

“Local producers have to reduce their list prices domestically in line with the softer import offers,” a Mumbai-based trader said.

Although lower offers were heard for both imports and domestic goods, trade activity remained subdued because of the volatile rupee, which dampened buying interest, Mumbai-based traders and converters said.

The company’s polyethylene (PE) prices are unchanged at Rs91.00–92.00/kg ($1.76-1.77/kg) DEL for low density PE (LDPE) film, Rs81.50–82.50/kg DEL for linear LDPE film and Rs82.50–84.00/kg for high density PE film, inclusive of a 10.3% excise duty, with effect from 24 November.

($1 = Rs51.72)

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By: Ong Sheau Ling
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