01 August 2012 13:39 [Source: ICIS news]
SINGAPORE (ICIS)--Polyethylene (PE) and polypropylene (PP) producers in India raised their list prices by Indian rupees (Rs) 0.50–2.00/kg for most grades late on Tuesday, due to higher import offers for August shipments, a decrease in domestic supplies and a weaker rupee, company sources said on Wednesday.
The new list prices, which were quoted by the four Indian producers – Reliance Industries Ltd (RIL), Indian Oil Corp, Haldia Petrochemicals and GAIL India – would take effect from 1 August, they said.
The increase in PE came after three downward adjustments since early May, when the spot markets for both domestic and imports were softening, while Indian producers had already raised their PP list prices in early July, following a tighter market.
The new PE and PP list prices now stand at Rs94.00–94.50/kg DEL (delivered) India for low density polyethylene (LDPE) film, Rs93.00–94.00/kg DEL India for linear low density polyethylene (LLDPE) film, Rs94.00–95.00/kg for high density polyethylene (HDPE) film, Rs97.50–99.00/kg DEL India for PP raffia, and Rs102.00–103.00/kg for PP block copolymer, inclusive of a 12.3% excise duty.
Based on the new list prices and an exchange rate of Rs55.70 against $1, RIL quoted its equivalent import parity at $1,370/tonne CFR (cost and freight) Mumbai for both LDPE film and LLDPE film, $1,375/tonne CFR Mumbai for HDPE film, $1,400/tonne CFR Mumbai for PP raffia and $1,438/tonne CFR Mumbai for PP block copolymer, company sources said.
“[The] rupee has been weakening in July, and all producers here are holding on to low inventories, so, in response to these reasons, we have [increased] our list prices,” said a source at Haldia Petrochemical.
Low stock levels among local producers were a result of robust sales volume in July because of a pick-up in downstream demand ahead of the festive period, said company sources.
“Import prices for August are higher. Hence, we have to reflect the price gain accordingly on the list prices,” said a source at RIL.
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