19 March 2013 10:10 [Source: ICIS news]
SINGAPORE (ICIS)--India’s Reliance Industries Ltd (RIL), Haldia Petrochemicals and GAIL announced late on Monday a price protection on polypropylene (PP), high density polyethylene (HDPE) and linear low density polyethylene (LLDPE) in the domestic market, industry sources said.
A price protection is an agreement between a buyer and a seller to fix the price of the material during their contractual period.
The move is aimed at boosting buying sentiment amid falling import prices and weak downstream demand.
The price protection will start on 19 March and it will remain valid until 1 April.
“[They are] addressing apprehension of falling prices. [The move] is a confidence building measure for those taking a wait-and-see approach,” an industry source said.
According to an Indian trader, low density polyethylene (LDPE) prices are not covered by the price protection amid material shortage.
The same trader said the price protection will likely boost buying activity in the short term.
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