18 October 2012 09:22 [Source: ICIS news]
SINGAPORE (ICIS)--Indian producers reduced prices of natural grade HDPE for the third time in October in a bid to spur buying interest in a sluggish market, market players said on Thursday.
The third price reduction for this grade is effective from 18 October,they said.
Prices were revised down by Indian rupee (Rs) 0.50/kg (Rs500/tonne) ($9.50/tonne), following previous reductions of Rs3/kg on 1 October and Rs2.50/kg on 6 October, to Rs89.00-89.50/kg DEL (delivered) for HDPE 100 and to Rs83.00-85.50/kg DEL for HDPE 80 excluding a 12.3% excise duty.
The price declines in October reversed the Rs2/kg price hike announced by the producers on 1 September.
Buying sentiment continues to remain bearish as political instability and an uncertain economic outlook caused government-led projects in the water supply segment to be delayed, a supplier said.
The fluctuations in the value of the Indian rupee versus the US dollar also dampened buying interest, suppliers and buyers said.
The rupee gained 7% versus the dollar in a month to Rs51.75 on 5 October, but subsequently softened by 2% to Rs52.88 on 18 October.
Demand for all HDPE grades was expected to pick up following the price reduction and ahead of the month-long festival season, suppliers and buyers said.
Indian producers of natural pipe grade HDPE include Reliance Industries, Haldia Petrochemicals and Gail India.
($1 = Rs52.88)
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