03 December 2012 13:27 [Source: ICIS news]
SINGAPORE (ICIS)--Indian producers Reliance Industries Ltd (RIL) and Indian Oil increased their list prices for polyethylene (PE) pipe grade over the weekend to counter the depreciation in the value of the Indian rupee against the US dollar, sources close to the producers said on Monday.
The prices of high density PE (HDPE) natural pipe grade, excluding a 12.3% excise duty, were hiked by Indian rupee (Rs) 1/kg, effective from 1 December.
Following the increase, HDPE natural pipe grade prices in the Indian domestic market are at Rs91.50-92.50/kg DEL (delivered) for HDPE 100 and Rs85.50-89/kg DEL for HDPE 80.
The price increases follow a Rs2.50/kg increase in November, which, in turn came after three price reductions in the previous month.
“Buying activity is slowly picking up now in the irrigation segment, as end users realise that prices have bottomed,” said a source close to RIL. However, demand in the water supply and other infrastructure segments was still below expectations, the source added.
Typically, the peak demand season for HDPE pipe grade begins by September, but this was delayed until November because of the extension of the monsoon season until October, as well as the uncertain economic situation which caused infrastructure projects to be delayed, a trader said.
($1 = Rs54.27)
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