Top Indian Oil Companies Revise Polymer Prices w.e.f 1 June 2023

Indian oil companies have made significant price revisions in the polymer market, with various adjustments taking effect from 1 June 2023. These revisions aim at addressing market dynamics and meeting the evolving demands of customers. Let’s delve into the details of these price revisions implemented by Indian Oil Corporation (IOC), Hindustan Petroleum Corporation Limited (HMEL), Reliance Industries Limited (RIL), and ONGC Petro Additions Limited (OPAL).

1. Indian Oil Corporation

PP – To align with market conditions, IOC has implemented a notable decrease in polypropylene (PP) prices. Domestic PP prices have been reduced by INR 3,000 per metric ton (MT). Additionally, IOC has withdrawn the price protection that was previously provided, indicating a more flexible pricing strategy for PP.

PE – IOC has also reduced polyethylene (PE) prices, targeting various polymer grades. Specifically, high-density polyethylene (HDPE) products, including:

• HD-Yarn/Raffia, Tarpaulin & IM – INR 2,000/MT
• All Other HDPE Grades – INR 1,500/MT
• Linear Low-Density Polyethylene (LLDPE) – INR 2,000/MT.

Moreover, IOC has withdrawn price protection for PE, indicating a shift in pricing strategies.

2. HPCL-Mittal Energy Limited

HMEL has announced a price decrease for both PE and PP products:

• HDPE (Basic)- INR 4,000/MT
• PP (Basic)- INR 3,000/MT

These price adjustments reflect HMEL’s response to the changing market dynamics and customer requirements. Furthermore, revisions have been made in ex-depot prices and locational adjustments, further optimizing the pricing structure. In the case of PP, there are price revisions in ex-depot prices and locational adjustments.

3. Reliance Industries Limited

RIL, a leading player in the polymer industry, has introduced significant price reductions across various polymer segments. This adjustment reflects RIL‘s commitment to competitiveness in the PET market. Moreover, RIL has withdrawn the previously provided price protection, suggesting a revised pricing strategy as prices are reduced by:

• PET (Basic) – INR 2,000/MT
• LLDPE (All Grades)- INR 2,000/MT
• LLDPE Octene- INR 1,000/MT
• LD EC- INR 1,000/MT
• LDPE- INR 2,000/MT
• HDPE (All Grades)- INR 1,500/MT
• HD inj. and Raffia- INR 2,000/MT
• PVC High K Grades- INR 2,500/MT
• PVC Low K Grades- INR 5,500/MT

RIL has withdrawn the Product Specific Duty (PSD) on PVC Low K, indicating an adjustment in the regulatory landscape.

4. ONGC Petro Additions Limited  

OPAL, a significant player in the Indian polymer market, has implemented price reductions across multiple polymer categories to enhance affordability for customers. The price reduction reflects the company’s commitment to competitive pricing strategies:

• PP- INR 3,000/MT
• LLDPE- INR 2,000/MT
• HDPE Raffia/Yarn- INR 2,000/MT
• GPBM/MBM/HM/Pipe– INR 1,500/MT
• HD IM- INR 4,000/MT

Deemed Export Prices

• PP- INR 3,000/MT
• HDPE- INR 2,000/MT
• LLDPE- INR 2,000/MT

OFB’s Insight

Indian oil companies including IOC, HMEL, RIL, and OPAL have introduced significant price revisions in the polymer market. These revisions reflect their commitment to adapting to market dynamics and meeting the evolving demands of customers. The adjustments in prices across various polymer categories, including PP, PE, PET, LLDPE, HDPE, and PVC, will have a profound impact on the polymer industry and related sectors in India. These price revisions will not only enhance affordability for customers but also shape the competitive landscape of the polymer market in the country.

Read More – Growing Demand And Challenges Of Global Polyethylene Terephthalate (PET) Market

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