Plastic processors in India today have seen increasing raw material costs as polymer producers in the country increased their ex-work prices for PE and PP, with effect from today. The two state-run polymer producers: Indian Oil Corporation (IOC) and GAIL have hiked their respective product prices, that could be interpreted as due to the prices in the South East Asian region rising recently apart from inadequacy of stocks in the major markets in India, with active demand conditions prevailing. GAIL has raised its HDPE and LLDPE prices by Rs 1.5 a kg respectively, and IOC has hiked its HDPE and LLDPE prices by Rs 1.5 a kg respectively, and its PP price has been raised by Re 1 a kg.
Taking into account the prevailing market conditions in the country, three factors seem to contribute towards the producers raising their prices. Rising international prices, shortage of stocks and weakening of the INR seem to prompt the producers to increase their polymer prices, with active demand conditions prevailing in polymer markets.
The recent HDPE, LLDPE and PP prices in the South East Asian region were reported to go up. The latest HDPE price in the key Asian region was reported to go up by around $15 per metric tonne to around $1,530 per metric tonne; LLDPE price in the region was reported to go up by approximately $20 per metric tonne to around $1,560 per metric tonne, while, PP price in the region was reported to move up by around $10 per metric tonne to $1,565 per metric tonne.
Interactions with traders in the major markets in the country revealed that stocks of the polymers were dwindled, leaving the markets with inadequate stocks. Besides, the frequently weakening INR against the USD had been rendering landed costs of imports higher, resulting in buyers preferring to procure their raw materials from within the country.
By Indu Bhusan Nath
ibnath@indianpetrochem.com
Taking into account the prevailing market conditions in the country, three factors seem to contribute towards the producers raising their prices. Rising international prices, shortage of stocks and weakening of the INR seem to prompt the producers to increase their polymer prices, with active demand conditions prevailing in polymer markets.
The recent HDPE, LLDPE and PP prices in the South East Asian region were reported to go up. The latest HDPE price in the key Asian region was reported to go up by around $15 per metric tonne to around $1,530 per metric tonne; LLDPE price in the region was reported to go up by approximately $20 per metric tonne to around $1,560 per metric tonne, while, PP price in the region was reported to move up by around $10 per metric tonne to $1,565 per metric tonne.
Interactions with traders in the major markets in the country revealed that stocks of the polymers were dwindled, leaving the markets with inadequate stocks. Besides, the frequently weakening INR against the USD had been rendering landed costs of imports higher, resulting in buyers preferring to procure their raw materials from within the country.
By Indu Bhusan Nath
ibnath@indianpetrochem.com
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