Mumbai, Feb. 28
THE Budget announcements on customs duty cuts for petrochemical products, including ethylene and propylene polymers, are not expected to affect prices.
According to analysts, the benefits from the 5-per-cent duty cuts on products such as HDPE, LDPE, styrene and benzene will be offset by the rising prices of raw materials and petrochemicals in the international markets.
Prices of crude oil, which influence the prices of products along the hydrocarbon chain, including petrochemicals, crossed $51 a barrel last week, compared with $33 levels in the same time last year.
Share prices of one of the largest petrochemical makers IPCL did not show substantial change on the back of these announcements as the market had discounted the fact that consumer prices will not change, said a senior analyst. Industry observers, however, believe that companies such as IPCL may see profits rise because of lower corporate tax.