Chennai : Polymer prices firmed up across-the-board during the first six months of the current fiscal following the cyclical upswing in demand from user industries. Industry insiders see nothing abnormal in the sharp upturn in the fortunes of the industry and said the trend is on the expected course.According to the latest figures published by the Mumbai-based independent data-base compiler, the Centre for Monitoring Indian Economy (CMIE), prices of all major polymers increased substantially during the first half ended September 2000. Polystyrene prices was the most buoyant with average prices rising by 43.5 per cent over the same period last year.LDPE prices grew by 12.4 per cent, PVC prices by 17 per cent, HDPE prices by 8.7 per cent and polypropelene prices by 8 per cent during the period, according to CMIE's latest Monthly Review of Indian Economy.
The production of HDPE hovered around the 27,000 to 28,000 tonne mark during the April-August period for which the data is available. However, on a year-on-year basis it registered a decline of 18.9 per cent. This is in contrast to a growth to the tune of 10.2 per cent during the same period previous year.
PVC resins production went up to 71,965 tonne-mark in August this year, up from 65,785 tonne in April. The production of LDPE also fluctuated in a band of 55,000 to 58,000 tonne-mark during the period. In relative terms, while the PVC production went up by 18.9 per cent during April-August, the LDPE production also recorded a growth of 15 per cent during the period. The growth in PVC production stands impressive as it recorded over 37.6 per cent growth clocked during April-August 1999.
According to the industry sources, the current spurt in prices is a fallout of the cyclical movements in the industry. The increase in prices is partially attributed to the more than 300 per cent jump in the feedstock prices.
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