India's Reliance faces uphill task amid nose-diving petrochem prices

07-Nov-08

As per the industry sources, the prices of petrochemical products including PE, PP and PVC in India have nosedived more than 60% in the recent months, the biggest fall in about three decades. Reliance Industries (RIL), which is the leading petrochem company in India is feeling the heat which is evident by the shut down of its Jamnagar-based PP plant, the repeated price reduction in previous months and trader reports of the company offering around 10% markdown on petrochem prices for orders acknowledging supplies for two months in advance. Besides, a grim economic situation spreading in US, Europe coupled with a drastic slowdown in petrochem demand will spell concerns for the company which apparently exports 70% of the products.