India’s RIL shuts Vadodara LDPE plant on technical woes

03 October 2012 09:38  [Source: ICIS news]

SINGAPORE (ICIS)--India’s Reliance Industries Ltd (RIL) has shut its low density polyethylene (LDPE) plant in Vadodara, west India, on 1 October because of mechanical issues, a company source said on Wednesday.

The nameplate capacity of the LDPE facility is 40,000 tonnes/year, the source said.

“We are still accessing the situation, so we have no idea when it will be restarted,” he said.

The outage at this LDPE unit lifted buying sentiment slightly, although buying activity has slowed down this week as restocking activities have mostly been completed.

A producer based in the Gulf Cooperation Council (GCC) region has raised its offer by $20/tonne (€15/tonne) to $1,400/tonne CFR (cost & freight) Mumbai as a result, local players said, adding that Iranian cargoes were being offered at $1,360/tonne CFR Mumbai.

The equivalent import parity price, following RIL’s list price reduction on 1 October of Indian rupees (Rs) 2.00/kg (4 cents/kg) to Rs95.00-95.50/kg DEL (delivered) Mumbai, was at $1,440/tonne CFR Mumbai, based on an exchange rate of Rs53.50 against $1, the company source said.

“Offers for imports are higher now. We will have to see how long this outage will last because the fundamental demand is still weak,” a trader based in Mumbai said.

($1 = €0.77)
($1 = Rs52.40)

Author: Ong Sheau Ling

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