HDPE (High Density Polyethylene) prices in Mumbai gained upward momentum this week in Mumbai market based on short supply of imports and domestic products. Despite this price hike, the demand for the polymer has been steady this week due to the wide scale application of HDPE. Indianpetrochem took a quick review of the current market situation for the polymer after consulting few traders in Mumbai.
In the last two weeks, Reliance Industries Limited has increased the list prices of HDPE by Rs.1.5 - Rs. 2 a kg. Other domestic manufacturers like GAIL and IOCL followed the same price revision pattern. This price hike was backed on low imports in the Mumbai market. However, despite the current price trend, the price for the polymer is satisfactory. To this effect, a Mumbai based trader told the website ", The current demand is moderate based on need based procurement strategy adopted by end user industries".
Indianpetrochem evaluated the offered port price for HDPE for over past 3 months and realized that the offer price from Saudi Arabia for delivery in January, 2014 has increased by 1.3%, as compared to similar delivery in the previous months.
It is difficult to comment on the market outlook for the polymer in the future, but the current price trend of a rise in import and domestic prices gives the impression that the price situations isn't likely to improve in the near future. As such, there is an indication that if the price of the polymer rises beyond these levels then the demand should most likely take the hit.
However, a end user buyer for HDPE in Mumbai had contrary views on the matter, where the buyer expected the prices to drop down in the future.
The per kg costs for the High Molecular HDPE is 124-126 Rs. While that for HDPE produced by blow moulding is Rs. 123-124, injection moulding is Rs. 121-123. Also the cost of HDPE film is Rs. 125-127 per kg. HDPE (Raffia) costs Rs. 120-123 per kg.
In the last two weeks, Reliance Industries Limited has increased the list prices of HDPE by Rs.1.5 - Rs. 2 a kg. Other domestic manufacturers like GAIL and IOCL followed the same price revision pattern. This price hike was backed on low imports in the Mumbai market. However, despite the current price trend, the price for the polymer is satisfactory. To this effect, a Mumbai based trader told the website ", The current demand is moderate based on need based procurement strategy adopted by end user industries".
Indianpetrochem evaluated the offered port price for HDPE for over past 3 months and realized that the offer price from Saudi Arabia for delivery in January, 2014 has increased by 1.3%, as compared to similar delivery in the previous months.
It is difficult to comment on the market outlook for the polymer in the future, but the current price trend of a rise in import and domestic prices gives the impression that the price situations isn't likely to improve in the near future. As such, there is an indication that if the price of the polymer rises beyond these levels then the demand should most likely take the hit.
However, a end user buyer for HDPE in Mumbai had contrary views on the matter, where the buyer expected the prices to drop down in the future.
The per kg costs for the High Molecular HDPE is 124-126 Rs. While that for HDPE produced by blow moulding is Rs. 123-124, injection moulding is Rs. 121-123. Also the cost of HDPE film is Rs. 125-127 per kg. HDPE (Raffia) costs Rs. 120-123 per kg.
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