HDPE prices in India tend to stay stable despite Crude Oil prices declining in international markets as shortage of the polymer caused by the ongoing maintenance shut-down of the Nagothane plant of Reliance Industries Limited (RIL) has been offsetting the impact of the oil price fall, in an active demand environment for the polymer arising due to vigorous off-takes from the active packaging industry. According to the latest information received, the idled plant is expected to resume operations by the 20th of this month.
Crude Oil prices have been traversing downwards since the last week of July 2014. On September 15, 2014, price of Brent Crude Oil was reported at $96.65 a barrel, which declined significantly from the price at $101.95 a barrel, reported on August 15, 2014. Likewise, price of the OPEC basket has fallen to $94.68 per barrel to $99.94 a barrel during the same timeframe.
In the country, active demand for packaging materials has strengthened demand for the polymer. A Delhi-based HDPE packaging manufacturer said that full-fledged manufacturing activities were going on in his factory as active demand for the product was prevailing. He also revealed that purchases of the raw material were in accordance to schedule.
A Chennai based trader told Indianpetrochem that stocks of the Injection Moulding and Film grades of the HDPE material were short in the market due to the plant shut-down, and supplies of the grades from Indian Oil Corporation were inadequate to cater to the prevailing strong demand. The trader further told that price of the polymer is expected to stay stable until resumption of the idled plant.
Demand for the polymer is also expected to rise in the coming days as the festive season is approaching. On the supply side, another plant shut-down is, however, on the anvil. RIL will shut-down its Hazira plant towards the last week of this month, and that will apparently result in constraining the supply.
(This article was published on the website on September 16, 2014)
Crude Oil prices have been traversing downwards since the last week of July 2014. On September 15, 2014, price of Brent Crude Oil was reported at $96.65 a barrel, which declined significantly from the price at $101.95 a barrel, reported on August 15, 2014. Likewise, price of the OPEC basket has fallen to $94.68 per barrel to $99.94 a barrel during the same timeframe.
In the country, active demand for packaging materials has strengthened demand for the polymer. A Delhi-based HDPE packaging manufacturer said that full-fledged manufacturing activities were going on in his factory as active demand for the product was prevailing. He also revealed that purchases of the raw material were in accordance to schedule.
A Chennai based trader told Indianpetrochem that stocks of the Injection Moulding and Film grades of the HDPE material were short in the market due to the plant shut-down, and supplies of the grades from Indian Oil Corporation were inadequate to cater to the prevailing strong demand. The trader further told that price of the polymer is expected to stay stable until resumption of the idled plant.
Demand for the polymer is also expected to rise in the coming days as the festive season is approaching. On the supply side, another plant shut-down is, however, on the anvil. RIL will shut-down its Hazira plant towards the last week of this month, and that will apparently result in constraining the supply.
(This article was published on the website on September 16, 2014)
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