16 December 2011 07:26 [Source: ICIS news]
SINGAPORE (ICIS)--India’s Reliance Industries Limited (RIL) has increased its domestic list prices for polyethylene (PE) and polypropylene (PP) by up to Indian rupees (Rs) 2.00/kg (2,000/tonne, $37.28/tonne) to reflect local currency depreciation, market sources close to the company said on Thursday.
RIL announced to their customers late on 14 December an increase of Rs1.00/kg for linear low density PE (LLDPE) film, low density (PE) film, homo copolymer PP and block copolymer PP and Rs2.00/kg for LDPE lamination and random copolymer PP, while keeping list prices for HDPE grades unchanged, the sources said.
The increase in prices of these PE grades was after three weeks of rollover, they added.
The revised LDPE film prices are at Rs91.00-92.00/kg ?xml:namespace>
New PP prices are at Rs88.50-89.50/kg
The increase in list prices was within expectations of Indian players.
“It was a wrong move of the local producers to raise PP prices last week, given the temporary appreciated rupee,” a Mumbai-based trader said.
Last week, RIL raised PP prices by Rs1.00-2.00/kg.
“The rupee is fluctuating like a ‘yo-yo’. Producers [here] have to adjust their prices accordingly,” another Mumbai-based trader said.
“We have to raise the list prices because of the rupee flux, but domestic sales did improve this week after two weeks of slow business because of slower import activity,” a RIL source said.
RIL’s equivalent import parity of PP raffia grade is at $1,341/tonne CFR (cost and freight) Mumbai, while block copolymer PP grade is at the high $1,300s/tonne CFR Mumbai, he added.
($1 = Rs53.65)
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