India’s RIL raises PE, PP list prices on weaker rupee

01 November 2012 04:26  [Source: ICIS news]

SINGAPORE (ICIS)--India's Reliance Industries Ltd (RIL) has raised its list prices for all polyethylene (PE) and polypropylene (PP) grades late on Wednesday to reflect the recent steep depreciation in the rupee and boost domestic buying sentiment, market sources said.

The PE and PP list prices, including 12.3% excise duty, are higher by Indian rupees (Rs) 1.00-2.50/kg (2-5 US cents/kg) with effect from 1 November.

The list prices of low density PE (LDPE) film are up by Rs1.00/kg at Rs93.50-94.00/kg DEL (delivered) India while LDPE lamination list prices are up by Rs2.00/kg, industry sources said.

The list prices of linear low density PE (LLDPE) film and high density PE (HDPE) film are up by Rs2.50/kg at Rs91.00-93.00/kg DEL India and 93.00-95.00/kg DEL India respectively, they added.

The price increases follow two to four times of price reduction since end-September, depending on grades.

Meanwhile, PP list prices have been increased by Rs2.00/kg for the second straight week, with the new list prices of PP raffia, injection and block copolymer at Rs93.50-96.00/kg DEL India, Rs94.50-96.00/kg DEL India and Rs99.50-100.50/kg DEL India respectively.

“The rupee has been depreciating since a week ago, and [the depreciation] is rather steep. So, we have to adjust our list prices accordingly to match the current discussion levels for imports,” a source close to RIL said.

The increment has boosted domestic trade and lifted prices in the open domestic market, local traders said.

On average, locally-produced PE and PP material and imports were discussed and transacted Rs1.00-3.00kg higher during the week, as compared to the previous week, they added.

“The sentiment just suddenly changed this week with the increased list prices. Buying [activity] has returned,” a trader based in Mumbai said.

The Indian domestic market had been subdued since end-September on the back of high stockpiles of finished goods and abundant lower-priced imported polyolefins resins.

($1 = Rs53.85)


Author: Ong Sheau Ling



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