(plastemart) -- Reliance Industries has announced a rollover in prices of PP, PE and PVC, with effect from May 24, 2012. Price protection has been announced for PP and PVC. Price protection in PE will continue until Jun 1, 2012 or next change. EVA prices have seen a down ward revision by Rs 3.
The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise, with businesses in the energy and materials value chain. The Group's activities span exploration and production of oil and gas, petroleum refining and marketing, petrochemicals (polyester, fibre intermediates, plastics and chemicals), textiles, retail, infotel and special economic zones.
MOSCOW (MRC) -- Russian companies continue to reduce the volumes of purchases of suspension PVC in external markets. Following two weeks of May, the imports of resin fell to 12,500 tonnes. The weakening of the rouble against the dollar makes the imported material is even more unprofitable, as per MRC analysts.
In April, Russian companies reduced their imports of suspension PVC to 33,000 tonnes. May also shows a negative trend. Over the two weeks of this month, the imports of resin to the Russian market amounted to 12,500 tonnes. This is a very low figure, as last year the imports to Russia in May made about 56,600 tonnes of PVC.
This month, the imports from the U.S. and China fell almost by three-fold. The deliveries of resin from Russia reduced also significantly. The decline in imports of PVC to Russia over the last two months resulted from several factors. Firstly, Russian producers, in particular, Caustic (Sterlitamak) increased their supplies. The company this year increased the production of PVC by one and a half.
The second important factor was an excess supply and a moderate rise in prices of PVC in external markets. Last year, on the back of dynamic growth in prices, the tsunami in Japan, Russian companies formed the additional supplies of PVC very actively in the beginning of the year, anticipating the shortages and significant growth in demand for finished goods in the domestic market.
Excess supply of PVC in external markets, particularly in the U.S., and low demand in all the world in May led to a decline in prices. As per market participants, North American PVC for June was below than USD1,000/tonne, CFR St. Petersburg.
However, the May weakening of the rouble against the dollar completely offset the current decline in prices of PVC in external markets, and as a consequence, Russian companies do not hurry to contract PVC. Some companies even refused to buy resin in the external markets.
MOSCOW (MRC) -- In April, Russian companies reduced the import of linear polyethylene to 11,900 tonnes. In January-April this year, the total import of LLDPE to Russia grew by 24% year on year, as per MRC analysts.
Last month, the total import of linear polyethylene by Russian companies decreased by 16% compared with the March figures and made about 11,900 tonnes. The main decline in foreign supplies fell on film polyethylene.
Recently, Russian companies, especially converters, found more difficult to deliver LLDPE to the domestic market. The customs authorities continue to increase pressure on importers: indicative prices at determining the customs value increased unreasonably, and volumes of LLDPE, cleared up with 10% import duties, increased significantly (HS code 3901 90 9000). Many companies-importers freezed their assets seriously enough (cash security for imports of goods).
In January-April this year, the total import of linear polyethylene to Russia amounted to about 46,600 tonnes, up by 24% compared to the same period a year ago.