This week, after sustaining a cut in prices for almost a month, all petrochemical companies have raised those of a popular variant of polymer, polyethylene, by Re 1 per kg or Rs 1,000 per tonne.
Industry sources said the price was raised in both types, high density polyethylene (HDPE) and linear low density polyethylene (LLDPE).
For some manufacturers, the low prices had even resulted in negative margin, since they were not able to raise prices due to heavy imports, while crude petroleum prices were going up globally. While some petrochemical refiners use crude as the raw material, some use naptha.
In December, the petrochemical manufacturers — Reliance Industries, Indian Oil, GAIL and Haldia Petrochemicals — cut the price of LLDPE by Rs 2.50 to Rs 3 a kg, following heavy imports and a decline in prices globally. Usually, after October, prices of polymer see a rise, due to increase in demand from both the retail and wholesale industrial sector. However, imports have been catering to demand rather than domestic supply.
This, month, the rise was triggered by simultaneous increase in prices of polymer, LLDPE and HDPE in South Asian markets. Prices witnessed a rise of $40-50 per tonne in China and other South Asian markets.
However, the price of polypropylene, another widely used polymer, hasn’t changed, since domestic supply has been catering to demand. The Director General of Foreign Trade has imposed an anti-dumping duty on it for a period of five years.
LLDPE is one of the most popular variants of polyethylene, produced under low temperatures and used for plastic bags and sheets, plastic wraps, stretch wraps, pouches, toys, covers, lids, pipes, buckets, containers and the covering of cables.
Polypropylene is used in a variety of day-to-day products, from high-tenacity cement and fertiliser bags to tough fibres such as films and containers. HDPE is a high-tenacity polymer, used primarily in preparation of bottles, chairs, mugs, wood plastic composites, telecom ducts, etc.
