India PE, PP makers raise list prices on volatile rupee, short supply

09 March 2012 08:30  [Source: ICIS news]

SINGAPORE (ICIS)--India’s polyethylene (PE) and polypropylene (PP) producers have increased their list prices by Indian rupees (Rs) 2.00-2.50/kg ($40-50/tonne) for all grades of polyolefins because of the depreciation of the rupee as well as short domestic and import availability, sources close to the companies said on Friday.

The producers last raised prices about a week ago.

Local major Reliance Industries Ltd (RIL) announced late on 7 March that it had raised the list prices of high-molecular high density polyethylene (HDPE) blow-moulding grade by Rs2.50/kg, and by Rs2.00/kg for all other grades of PE and PP, said a source close to the company.

Other local producers, GAIL India and Indian Oil, followed suit, hiking their list prices accordingly, company sources said.

The revised list prices for linear low density polyethylene (LLDPE) film were at Rs92.00-93.50/kg DEL (delivered) Mumbai, while HDPE film prices were at Rs91.00-92.50/kg DEL Mumbai including a 10.3% excise duty, with effect from 8 March, the sources said.

Revised PP list prices were at Rs93.00-95.00/kg DEL India for raffia and Rs98.00-100.00/kg DEL for block copolymer, the sources added.

“The forthcoming shutdowns at GAIL and Indian Oil and the reduced import volumes since February amid healthy demand, continue to boost prices day by day,” a trader based in Mumbai.

The list prices of low density polyethyelene (LDPE) film rose to Rs93.50-95.00/kg DEL India as a result of the extended outage at RIL’s LDPE facility, coupled with tight supply from the Middle East, local traders said.

“One more increase in the list prices is expected as the shutdowns of local plants draw closer,” a source with GAIL India said.

Following the hikes, spot prices in the domestic market edged higher by Rs2.00-3.00/kg on 9 March from the previous week. Prices rose to an average of Rs92.00/kg DEL west India for general purpose LDPE film and HDPE film, Rs93.00/kg DEL west India for LLDPE film and Rs94.00/kg DEL west India for PP raffia, local traders said.

($1 = Rs50.24)

By: Ong Sheau Ling
+65 6780 4359

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