05 October 2012 05:45 [Source: ICIS news]
SINGAPORE (ICIS)--Buying interest for locally produced natural high density polyethylene (HDPE) pipe grade in ?xml:namespace>
Indian producers reduced prices of natural grade HDPE by Indian rupees (Rs) 3.00/kg ($58.97/tonne) on 1 October, to Rs92.00-92.50/kg
The reduction this week reverses the Rs2/kg price hike announced by the producers on 1 September.
“Buyers strongly resisted the price hikes last month as demand in the PE pipe segment has been very weak,” said a Mumbai-based trader.
Bearish market sentiment stems from political instability and an uncertain economic outlook in
The steady appreciation in the value of the Indian rupee versus the US dollar also pushed buyers to seek a price reduction, said a second trader.
The rupee has gained 7% versus the dollar in a month to Rs51.75 on 5 October.
Demand for HDPE is expected to pick up by the end of October on the back of a month-long pre-festival season buying spree, suppliers and buyers said.
Indian producers of natural pipe grade HDPE include Reliance Industries, Haldia Petrochemicals and Gail India.
($1 = Rs51.75)
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