01 November 2012 11:57 [Source: ICIS news]
SINGAPORE (ICIS)--Indian producers hiked their list prices for polyethylene (PE) pipe grade on 1 November to offset the steep depreciation in the value of the Indian rupee against the US dollar and revive buying interest, sources close to the producers said on Thursday.
The prices of high density PE (HDPE) natural pipe grade, excluding a 12.3% excise duty, are higher by Indian rupees (Rs) 2.50/kg (5 US cents/kg) by Reliance Industries Ltd (RIL) and by Rs1.50/kg by Indian Oil, with effect from 1 November.
Following the increases, HDPE natural pipe grade prices in the Indian domestic market are at Rs90.50-91.50/kg DEL (delivered) for HDPE 100 and Rs84.50-88/kg DEL for HDPE 80.
The price increases follow three price reductions since end-September.
“The increase was necessary to compensate for the depreciation in the rupee’s value which caused most buyers to stay away from the market,” said a source close to RIL.
The price increases are expected to boost buying sentiment, market players said. “End users now think prices have bottomed, so are showing some interest in returning to the market,” said a Mumbai-based trader.
Typically, the peak demand season for HDPE pipe grade begins by end-September, by when the monsoon season would have ended. But this year, an extended monsoon as well as the depreciation of the rupee had caused the market to remain sluggish through October.
($1 = Rs53.85)
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