Global polymer prices continue downslide

Global polymer prices have continued to see a downturn over the last few weeks. This is despite prices of key inputs such as naphtha remaining more or less flat, analysts said.

Naphtha prices have been almost stagnant at $480-485 a tonne during the past one month.

However, global prices of polymer products such as polypropylene are currently hovering around $1,270 a tonne compared with $1,350 a tonne at the end of the last month. Polyethylene is currently being quoted at $1,275 a tonne against $1,340 a tonne a month ago.

It is understood that global polymer products are witnessing the current trend of weakness because operations of several facilities in east Asia returned to normalcy after they had maintenance shutdowns from end-September to mid-October.

Senior officials at Reliance Industries declined to comment on the company's pricing strategy for the domestic market, against the backdrop of the weakness in global polymer product prices.

Meanwhile, polymer products user industries seemed to have adopted a wait and watch approach, as they are waiting for polymer products to stabilise, analysts said.

With its enhanced capacities going onstream earlier this year, Reliance Industries' production of polymer products saw 18.3 per cent growth, y-o-y, to 5,63,000 tonne in the second quarter of this financial year (ended September 30, 2006).