DUBAI (ICIS)--India’s Reliance Industries Limited (RIL) lowered list prices for polypropylene (PP) by rupees (Rs) 1/kg amid the recent appreciation of the currency, Mumbai-based traders said on Friday.
The traders said the price reduction for the PP homopolymer and block copolymer grades is “not unexpected”.
A strong rupee makes imports relatively cheaper and more attractive for Indian end-users.
“The [appreciation of the] rupee makes domestic products more expensive. Producers need to lower the list prices,” according to a Mumbai-based trader dealing in PP.
RIL could not be immediately contacted to confirm the price reduction.
The rupee appreciated in mid-May amid renewed optimism the Indian economy will pick up under the administration of Narendra Modi, the new prime minister of India.
Other than RIL, major polymer producers in India include Indian Oil, GAIL and Haldia Petrochemicals.