India's Reliance restarts Vadodara LDPE unit on 9 March

09 March 2012 07:36  [Source: ICIS news]

SINGAPORE (ICIS)--India’s Reliance Industries Limited (RIL) will restart its low density polyethylene (LDPE) unit at Vadodara in west India later in the day, following an unexpected shutdown last month, a company source said on Friday.

The 50,000 tonne/year LDPE plant was initially scheduled to restart on 29 February, but repairs took longer than planned, resulting in the delay in restarting, the source said. The unit was taken off line in the middle of February.

This affected LDPE plant produces general purpose grade, he said.

“The production line for heavy duty grades is running. Because of this longer than unexpected outage, the supply of general purpose grade has tightened,” he added.

RIL raised its list prices for LDPE film late on 7 March to Indian rupee (Rs) 93.50-95.00/kg ($1.86-1.89/tonne) DEL (delivered), inclusive of a 10.3% excise duty, with effect from 8 March.

This is equivalent to an import parity of $1,515/tonne (€1,136/tonne) CFR (cost and freight) Mumbai, the source said.

Offers for LDPE imports were also higher this week at $1,520/tonne CFR Mumbai for Iranian origins, local traders said.

LDPE film prices were at an average of $1,490/tonne CFR Mumbai on 2 March, according to ICIS.

($1 = €0.75 / $1 = Rs50.24)

By: Ong Sheau Ling
+65 6780 4359

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