RIL raises benzene price by Rs 6.80

Reliance Industries has raised prices of benzene and benzene-based petrochemicals from January 1. Kochi Refinery and BPCL may also raise the prices of the petrochemicals.

Reliance raised the price of benzene by Rs 6.80 a kg to Rs 53. The prices of other benzene-based petrochemicals which have been increased are toluene by Rs 5.60 to Rs 44.80, DEG by Rs 4.20 to 54.90, MEG by Re 1 to Rs 43.80, methanol by Re 0.50 to Rs 28 and cyclo examone by Rs 5 to Rs 85.

The increase in benzene prices by leading producers will put pressure on producers of petrochemicals such as pthelic anhydride, acetone and phenol to hike prices. Constant price rises of these petrochemicals have also left the lamination sheets producers worried.

Herdelia Chemicals and Hindustan Organic are also planning to raise the prices of petrochemicals produced from benzene. The basic price of Herdelia Chemical's phenol (Schectedy Herdilia), excluding excise duty and taxes, is currently Rs 79.

The company is facing resistance from its customers, who are not ready to accept price hike any more. It may not raise the price of acetone either on the same ground.

Benzene, from which many petrochemicals are produced, is steadily rising in the international markets. In the last few weeks, the price of a tonne of benzene has gone up by $100.

The benzene prices, which were around $940-950 earlier, are now in the range of $1,050-1,060 a tonne. The rise in prices of benzene is worrying lamination sheets producers.

"Increase in prices of acetone and phenol raises the cost of production for lamination sheets," said Janak Ladhani, director of Sonkamal enterprises.

Acetone and phenol are some of the important raw materials for lamination sheets producers. These sheets are used in furniture for covering plywood.

The other raw materials are methanol and formaldehyde. Methanol prices have also tripled in the last two years from $100 to $300. Ahmedabad and Delhi are some of the major centres for lamination sheets production.

The lamination sheets producers have been facing competition from Chinese imports. Local lamination sheets manufacturers are seeing a drain on their profits with consumers not accepting higher prices.

KOCHI REFINERY and BPCL may also raise the prices of the petrochemicals

HIKE in benzene prices will put pressure on producers of petrochemicals such as pthelic anhydride, acetone and phenol to raise prices

PRICE rise of petrochemicals have also left the lamination sheets producers worried