The Hindu Business Line : Polymer prices surge on rising crude

NEW DELHI: Prices of petrochemical products like polymers and plastic vinyl have surged up to 20 per cent here in the last two weeks as crude oil continued to trade at record levels in the global market.

Polymers, a by-product of crude oil, recorded the biggest jump of 20 per cent in view of rising input cost, after crude oil climbed to a record high of $139.12 a barrel on geo-political tension in Iran and weak dollar against euro.

Prices of low density polymer shot up by Rs 19, or 20 per cent, to Rs 124 per kg from Rs 105 on May 26.

"Huge rise in polymer prices in just two weeks will lead to a increase in price of packaging plastic material and other plastic moulded items," said Bharat Bhushan, a wholesale trader here.

"Costlier imports due to weakening rupee against dollar too cast its shadow on the polymer prices," said Ashwani Sehgal of Champion Polymers. Polypropylene polymer prices flared up to Rs 120 per kg from Rs 92 per kg in last week, a rise of about 20 per cent.

High density polymer, mainly consumed by consumer electronics and moulded furniture makers, climbed by Rs 12.50, or 15 per cent, to Rs 100 per kg. Other polymers also registered significant appreciation.

Polymers are mostly used for producing packaging materials and in automobile sector. Polymers such as LLDPE, LDPE and HDPE are main plastic materials in the world for conversion as well as end users. - PTI

Prev: Eni Holding open offer for HOEC not to begin on June 11
Next: Crude takes breather

Business Line | NUS Index |