India’s RIL cuts domestic PE/PP list prices by Rs1.50-3.00/kg

23 December 2011 03:50  [Source: ICIS news]

SINGAPORE (ICIS)--India’s Reliance Industries Ltd (RIL) has cut its domestic list prices for low density polyethylene (LDPE) and polypropylene (PP) by Indian rupees (Rs) 1.50-3.00/kg (Rs1,500-3,000/tonne, $28-57/tonne), because of lower import prices and a persistently weak buying interest across Asia, market sources said on Friday.

RIL announced to their customers late on 21 December a decrease of Rs1.50/kg for LDPE film, Rs3.00/kg for LDPE lamination and Rs2.50/kg for homopolymer PP grades effective 22 December, the sources said.

For LDPE film, RIL’s revised prices are Rs90.50-91.50/kg DEL (delivered), inclusive of a 10.3% excise duty.

The company’s domestic list prices for all LLDPE, HDPE and PP copolymer grades were left unchanged, while price protection was given on HDPE grades.

Indian Oil Corp (IOC), on the other hand, introduced an Rs1.50/kg cut on all homopolymer PP grades, but implemented an Rs1.00/kg price increase on PP copolymer grades, effective 22 December.

The company has given price protection on all HDPE grades until 1 January 2012.

Its new PP prices are now at Rs86.00-88.00/kg DEL for raffia, Rs85.50-88.50/kg DEL for injection, Rs87.00-89.50/kg DEL for isotatic PP (IPP) film, Rs87.00-89.00/kg DEL for bi-axially orientated PP (BOPP) film and Rs92.00-94.00/kg DEL for block copolymer PP.  

“The market is fundamentally weak in PP and LDPE. There are so much of Saudi and Iranian LDPE imports that have arrived over the past few months. PP prices in [the key] China market are still slipping. Producers [here] have to reduce their list prices, despite currency volatility,” a Mumbai-based trader said.

The Indian rupee has been weakening against the US dollar on concerns over the the slowing down of the Asian emerging economy.

“PP downstream demand in particular is weak [in India], high prices of PP will just force the converters to retreat,” an Indian trader/converter said.

On 23 December, Middle East and southeast Asian LDPE film were offered at $1,340/tonne CFR (cost and freight) Mumbai, while Middle East PP raffia were offered at $1,290-1,325/tonne CFR Mumbai, market players said.

Average LDPE film and PP raffia prices reported on 16 December were at $1,380/tonne CFR Mumbai and $1,340/tonne CFR Mumbai respectively, ICIS reported.

($1 = 0.77 / $1 = Rs52.73)

Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections

By: Ong Sheau Ling
+65 6780 4359

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