13 December 2012 12:18 [Source: ICIS news]
MUMBAI (ICIS)--Indian Oil and GAIL India have introduced discounts on all high density polyethylene (HDPE) grades and linear low density polyethylene (LLDPE) rota moulding grade, industry sources said on Thursday.
The discounts were announced earlier this week, on the back of mounting inventories and to entice buying interest in the local domestic market
An Indian rupee (Rs) 1.00/kg discount was placed on HDPE grades, and a Rs0.50/kg discount on LLDPE rota moulding grade.
The discount was valid from 10 December for India-based chemical producer GAIL and from 12 December for state-owned Indian Oil, and will be valid up till 21 December for both companies, the sources said.
“Producers have cut operating rates previously, and given that demand is rather flat, in order to secure more volume sales they have no choice [but] to resort to introducing discounts,” a converter based in New Delhi said.
“The higher list prices quoted by the local producers with effect from 1 December were a surprise to many, and now buying interest is so dull that some makers have to start discount schemes,” a Mumbai-based trader said.
Another Indian producer, Reliance Industries, raised both low density polyethylene (LDPE) and LLDPE film prices by Rs1.00/kg, and HDPE film by Rs1.50/kg, effective 1 December.
The move was made following depreciation seen in the Indian rupee, market players said.
The PE list prices for all three companies – GAIL, Indian Oil and Reliance – were standing at Rs97.00-97.50/kg ($1.78-1.79/kg) DEL (delivered) India for LDPE film.
LLDPE film was at Rs92.50-95.00/kg DEL India, while HDPE film was at Rs96.00-97.00/kg DEL India, inclusive of a 12.3% excise duty.
($1 = Rs54.32)
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