Costlier raw material hikes up plastics prices

Plastic manufacturing and processing tends to be a low-margin business

Plastic manufacturers and processors have hiked prices of their products following an increase in the cost of a key raw material. Prices of high-density polyethylene (HDPE), used in plastics and polymer manufacturing and processing, firmed up in India, triggered by bullish upstream crude and naphtha prices.

According to industry sources, HDPE prices have risen five-six per cent to Rs 84-85 a kg, which in turn led plastic manufacturers to hike prices of their products.

“We have raised prices for our products to a similar extent to compensate for the raw material’s price hike,” said Vishnu Patel of the Gujarat State Plastic Manufacturers’