HDPE prices were almost stable in the major polymer markets in India during the week ended on November 16, 2013. Demand strengthened considerably from the dull conditions prevailed during the pre-Diwali days, as manufacturing of end-products gained momentum. Manufacturers of HDPE end-products said that they began carrying out their manufacturing activities in full capacities as demand for their end-products became stronger. They thus purchased the raw material actively to cater to their production needs.
Several end-users also considered stocking raw material inventory in view of brewing uncertainties in regard to stability in HDPE prices in the near future. The occasional depreciation of the INR against the USD triggered apprehensions of possible upward movements in PE prices in the coming days.
During the week, there was no significant price movement in key international regions, to cause any impact on prices in India. In the South East Asian region, prices of the Blow Moulding and Film grades of HDPE remained unmoved on a week-on-week basis, at $1,522 per metric tonne CFR and $1,537 per metric tonne CFR respectively. But, price of the Injection Moulding grade of HDPE went down by $5 per metric tonne to $1,517 per metric tonne during the week from that in a week-ago period.
Despite no significant movement in international HDPE prices, domestic producers: Reliance Industries Limited (RIL), Indian Oil Corporation Limited (IOCL) and GAIL hiked their HDPE prices during the week.
RIL raised its HDPE price by Rs 1 a kg; GAIL hiked its HDPE price by Re 1 a kg; and IOCL lifted its HDPE price by Re 1 a kg.
The producer price hikes could be regarded as done due to the occasional weakening of the INR against the USD that pushed landed costs of imports higher. The producers seem to have hiked their HDPE prices to maintain a parity between domestic prices and landed costs of imports.
In the succeeding week, HDPE prices in open markets of the country are expected to go up, due to the producer price hikes this week. Demand is not likely to weaken as a result, as full-fledged manufacturing of end-products are going on in various manufacturing clusters in the country.
LDPE prices were almost flat in the major polymer markets in the country during the week under consideration. Manufacturing of end-products gaining momentum caused demand for the polymer strengthening considerably during the week.
During the week, LDPE price in the South East Asian region moved down by $5 per metric tonne to $1,672 per metric tonne CFR. But, the price decline did not have a moderating effect on LDPE price in India. Instead, RIL had hiked its LDPE price by Rs 1.5 a kg. The price increment seem to done in view of the instability of the INR against the USD, and the rising demand in the country.
In the succeeding week, LDPE prices in open markets of the country are likely to go up as the producer had raised its price for the polymer in this week. The possible rise in market prices in respect to the polymer will, however, not weaken demand as manufacturing of LDPE end-products are going on in full swing.
LLDPE prices in the major polymer markets exhibited almost linear movements during the week under review. Demand conditions were strong as end-users purchased the raw material actively to cater to their production needs. Rising demand for LLDPE end-products led to manufacturers operating their manufacturing units at full capacities.
There was no influence arising out of any significant movement in international prices. In the South East Asian region, LLDPE price remained unmoved at $1,542 per metric tonne CFR.
RIL raised its LLDPE price by Rs 1.5 a kg during the week, seemingly done in view of the fluctuating INR against the USD, and the strengthening demand for the polymer.
In the coming week, demand will continue to remain strong, although price of the polymer in open markets of the country are likely to rise as the producer had hiked the price this week.
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Several end-users also considered stocking raw material inventory in view of brewing uncertainties in regard to stability in HDPE prices in the near future. The occasional depreciation of the INR against the USD triggered apprehensions of possible upward movements in PE prices in the coming days.
During the week, there was no significant price movement in key international regions, to cause any impact on prices in India. In the South East Asian region, prices of the Blow Moulding and Film grades of HDPE remained unmoved on a week-on-week basis, at $1,522 per metric tonne CFR and $1,537 per metric tonne CFR respectively. But, price of the Injection Moulding grade of HDPE went down by $5 per metric tonne to $1,517 per metric tonne during the week from that in a week-ago period.
Despite no significant movement in international HDPE prices, domestic producers: Reliance Industries Limited (RIL), Indian Oil Corporation Limited (IOCL) and GAIL hiked their HDPE prices during the week.
RIL raised its HDPE price by Rs 1 a kg; GAIL hiked its HDPE price by Re 1 a kg; and IOCL lifted its HDPE price by Re 1 a kg.
The producer price hikes could be regarded as done due to the occasional weakening of the INR against the USD that pushed landed costs of imports higher. The producers seem to have hiked their HDPE prices to maintain a parity between domestic prices and landed costs of imports.
In the succeeding week, HDPE prices in open markets of the country are expected to go up, due to the producer price hikes this week. Demand is not likely to weaken as a result, as full-fledged manufacturing of end-products are going on in various manufacturing clusters in the country.
LDPE prices were almost flat in the major polymer markets in the country during the week under consideration. Manufacturing of end-products gaining momentum caused demand for the polymer strengthening considerably during the week.
During the week, LDPE price in the South East Asian region moved down by $5 per metric tonne to $1,672 per metric tonne CFR. But, the price decline did not have a moderating effect on LDPE price in India. Instead, RIL had hiked its LDPE price by Rs 1.5 a kg. The price increment seem to done in view of the instability of the INR against the USD, and the rising demand in the country.
In the succeeding week, LDPE prices in open markets of the country are likely to go up as the producer had raised its price for the polymer in this week. The possible rise in market prices in respect to the polymer will, however, not weaken demand as manufacturing of LDPE end-products are going on in full swing.
LLDPE prices in the major polymer markets exhibited almost linear movements during the week under review. Demand conditions were strong as end-users purchased the raw material actively to cater to their production needs. Rising demand for LLDPE end-products led to manufacturers operating their manufacturing units at full capacities.
There was no influence arising out of any significant movement in international prices. In the South East Asian region, LLDPE price remained unmoved at $1,542 per metric tonne CFR.
RIL raised its LLDPE price by Rs 1.5 a kg during the week, seemingly done in view of the fluctuating INR against the USD, and the strengthening demand for the polymer.
In the coming week, demand will continue to remain strong, although price of the polymer in open markets of the country are likely to rise as the producer had hiked the price this week.
Continue reading the main story>>
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