India’s Reliance hikes domestic LLDPE, PP list prices by Rs1-3/kg

09 February 2012 08:07  [Source: ICIS news]

SINGAPORE (ICIS)--India’s Reliance Industries Ltd (RIL) has raised its list prices for linear low density polyethylene (LLDPE) film and polypropylene (PP) by rupees (Rs) 1.00-3.00/kg (Rs1,000-3,000/tonne, $20-61/tonne), citing short supply amid a lack of imports from the Middle East, sources close to the company said on Thursday.

RIL announced to customers late on Wednesday a price increment of Rs1.00/kg for LLDPE film, and a Rs3.00/kg increase in prices of all PP grades, they said.

No change was issued on the list prices of low density PE (LDPE) and high density PE (HDPE) grades, the sources said.

Effective 9 February, LLDPE film will be priced at Rs85.50-86.00/kg DEL (delivered) India, inclusive of a 10.3% excise duty, a source said.

PP prices will increase to Rs89.00-91.00/kg DEL for raffia; Rs88.50-91.50/kg DEL for injection; Rs90.00-92.50/kg DEL for isotatic PP (IPP) film; Rs90.00-92.00/kg DEL for biaxially oriented PP (BOPP) film, and; Rs95.00-97.00/kg DEL for block copolymer PP, another source said.

“Domestic supply of [LLDPE film] is still short and lack of import offers worsened the tight availability,” a source close to Reliance said.

Several major Indian importers said their LLDPE film allocations were reduced by more than half in February.

Offers for February PP imports were likewise limited, they added.

Surging upstream naphtha and propylene prices, coupled with some turnarounds at PP facilities in Asia, drove selling ideas higher, market players said.

“The market will stay short until April, with an upcoming turnaround at Indian Oil,” another source close to Reliance said.

Indian Oil has plans to shut its 650,000 tonne/year HDPE/LLDPE swing plant and its 600,000 tonne/year PP unit at Panipat, along with an upstream cracker, for a 45-day maintenance from early April.

Reliance, on the other hand, has a February turnaround schedule at three of its PP lines at in Hazira, Jamnagar and Vadodara, with production loss estimated at 30,000 tonnes.

Import parity prices quoted by the local major were at $1,430/tonne (€1,073/tonne) CFR (cost & freight) Mumbai for LLDPE film, $1,490/tonne CFR Mumbai for PP raffia and $1,570/tonne CFR Mumbai for PP copolymer grades.

LLDPE film, PP raffia and block copolymer average prices were assessed on 3 February at $1,335/tonne CFR Mumbai, $1,380/tonne CFR Mumbai and $1,425/tonne CFR Mumbai, respectively, according to ICIS.

($1 = Rs49.15 / $1 = €0.75)

By: Ong Sheau Ling
+65 6780 4359

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