With effect from January 9, 2011, Reliance has announced price hikes of Rs 3/kg for polypropylene (PP) and Re 1/kg for polyethylene (PE). This follows a decision by Reliance Industries Ltd (RIL) to shut three of its units for annual maintenance, coupled with firm global prices. Prior to this, Haldia Petroche-micals had shut its units for annual maintenance.
The price hike has been driven by reduced domestic capacities and do not indicate a rise in demand. Import prices have also increased on surging demand from China, Taiwan and Japan, on reopening after the Chinese new year.