IPCL and Reliance Industries have increased prices of their polymer products across the board. While Reliance has effected the price hike in the first week of March, IPCL has increased in prices on Monday.
According to IPCL sources, it has only followed the international trend and other players in the domestic market with a hike in prices.
Senior officials at IPCL's Baroda office confirmed the price hike. "The hike in prices of petroleum products was decided on Saturday by the company. It is in line with the worldwide trend wherein prices of such products have gone up. Competitors in the domestic market have also increased prices. The move will enhance margins of the company,'' a company official said.
IPCL has increased prices of polypropylene (injection moulding grade) by Rs 2,000 per tonne to 52,000 per tonne while that of linear low-density polyethylene (LLDPE) has been increased by Rs 3,000 to Rs 50,500 per tonne. The low-density polyethylene (LDPE) will be priced at Rs 58,000, an increase by Rs 3,000. It has increased prices of high-density polyethylene (HDPE) and poly vinyl chloride (PVC) by Rs 3,000 per tonne each to Rs 52,500 per tonne Rs 44,500 per tonne.
Reliance Industries had effected the price hike a week earlier, said sources. Reliance has increased price of injection moulding grade poly-propelene by Rs 1,000 per tonne to Rs 51,000 per tonne, while the price of TQ & Raffia grade has been increased by Rs 950 per tonne to Rs 51,520 per tonne, said a source at a leading institutional brokerage. Reliance officials were not available for comment. Prices of HDPE Raffia prices, too, have been increased by Rs 2,000 per tonne to Rs 52,500 per tonne, while the HDPE moulding grade prices have increased by Rs 1000 per tonne to Rs 51,500 per tonne.
A section of market analysts, however, expressed scepticism over the price hike. "The hike in prices was not expected at this stage. In the short-term, margins may go up. Input cost for the company have risen which have been passed on to the end-user," said an analyst at Dalal & Broacha, an institutional broderage.
IPCL officials declined to accept this contention. "The input costs have not risen for IPCL as the main inputs, naphtha and natural gas, are procured domestically. This may be true for other players in the market who import the raw material," said a company official. "There has been no change in the administered prices of naphtha and natural gas and the need for any increase in input cost does not arise. The price hike will add to the margins after 25 per cent towards excise duty," he said.
