LDPE price pressure restricting purchases in Indian markets; market participants foresee further price rise – 7 Feb 2014

The recent LDPE prices in Indian markets have been imparting considering raw material price pressure on the end-product manufacturers in the country. Many such end-users, with whom Indianpetrochem interacted with, expressed their outlook of the price going up further. The country's only LDPE producer: Reliance Industries Limited, had increased its ex-work price for the polymer during its last two revisions, that resulted in the price escalating in the open markets in the country. As a consequence, traders in the country have been experiencing dull LDPE sales. 
 

The producer-price hikes were outcomes of Ethylene price going up in the international markets due to supply issues.
 

A Delhi-based LDPE sheet manufacturer said that various ways were being tried out in his factory to lower LDPE consumption, so that price inflation of the end-product could be restricted. He further said that he expected the price to go up in the coming days, and in that case, he will be compelled to raise price of the end-products.
 

Recently, price of the LDPE material remained unmoved in the Asian region, mainly due to Chinese markets remaining closed due to festival holidays. However, with the resumption of trading activities in Chinese markets, the price could rise in Asia, due to feedstock issues.