04 September 2012 07:23 [Source: ICIS news]
By Ong Sheau Ling
SINGAPORE (ICIS)--Trading activity in India's domestic polyethylene (PE) and polypropylene (PP) open market gained momentum this week, as local producers hike list prices by an average of rupee (Rs) 1.00-2.00/kg ($18.00-36.00/tonne), industry sources said on Tuesday.
Indian polymer majors Reliance Industries Ltd (RIL), Indian Oil, Gail India and Haldia Petrochemical have separately announced increases in PE, PP list prices late last week.
Effective 1 September, low density PE (LDPE) film is being sold to the domestic market at Rs96.00-96.50/kg ?xml:namespace>
High density PE (HDPE) film is offered at Rs96.00-97.00/kg DEL India, while PP injection’s new prices are at Rs98.50-101.00/kg DEL India. For PP raffia, a list price of Rs98.50-101.00/kg DEL India now applies. The prices are inclusive of a 12.3% excise duty.
More converters have come forth to restock, especially for grades like HDPE film, the supply of which is currently slightly tight, local traders said.
“Our sales volume is better than last week,” a trader based in
Traders said that prices in the west Indian open domestic market were discussed at Rs97.00/kg
“There are still quite a lot of [cheaper imported] cargoes ... flowing in the open market, but traders are hiking offers, with demand showing signs of strengthening,” another trader based in Mumbai said.
“Processors have to build up stocks [of resins] to ramp up operations to produce finished goods, so as to be in time to sell to wholesalers in October,” a converter based in west
Local traders said they were confident that trading activity in the local open market will remain active in September, on improved buying sentiment.
“We are not worried that prices will drop till mid-October,” another trader based in
Some converters, however, are concerned that upside in prices maybe limited because of the uncertainties in the Indian and global economic outlook.
“It is hard to say whether the festive demand will come strong. We can now only hope for the best,” another converter based in west
Indian polyolefins producers pointed to higher quotes in the import market, as well as rising feedstock costs in implementing price hikes in their domestic list prices.
Upstream naphtha, ethylene and propylene prices were assessed on 31 August at $986/tonne (€779/tonne) CFR (cost and freight)
“Margins are squeezed. We have no choice but to hike list prices,” a local polymer maker said.
“The [price] increase was within expectation,” a Mumbai-based trader said.
($1 = €0.79 / $1 = Rs55.53)
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