Plastic processors upset with granule units

Tag : pvc granule

" of small, domestic plastic processors are facing closure becauseof erratic supply of raw materials by primary producers andabnormal price increase - either we will have to pass on theincrease to customers or face closure," he added.
He alleged big players raised prices for raw materials and heldback supplies on their own terms in unison.
He said in the last three and a half months, prices of variousgrades of plastic were from 32 to 40 per cent.
" caused great hardships to domestic small and medium plasticprocessing units as they are unable to pass on the increase inproduction cost to the customer," he added.
Poly Propylene used raw materials costing Rs 78 per kg on March 1,2008, but was paying Rs 107 per kg now.
Prices were hiked several times a month and this raised processingcost from Rs 15-Rs 25 per kg to Rs 35 per kg on an average.
He alleged primary producers of plastic raw material werewithholding supplies and blamed big players like RelianceIndustries, Gas Authority of India Ltd, and the West Bengalgovernment controlled Haldia Petrochemicals Ltd (HPL).
They were exporting materials too, he added.
Seksaria claimed that in the last five years, exports rose by 372per cent from Rs 419 crore to Rs 1976 crore from the easternregion.
He urged the formation of a regulatory authority to curb cartelizedpricing and distorted distribution of raw materials to processors.
Other demands included smooth supply of raw materials to smallprocessors, stability in price norms, customs duty exemption onnaphtha, abolition of customs duty on all polymer products andanti-dumping duty on polyvinylchloride (PVC).
In response, HPL said it supplied average 15.6KT per month ofpolymer in eastern region against average supply in April and May2008 of 15.1KT a month due to production constraint in April 2008.
Due to low inventory of HPL, certain grades were not available tillJune 11 but production would resume and the shortfall would be madeup.
HPL said two consecutive days of Bangla Bandh affected dispatchesin June 2008.
HPL blamed the price rise on use of naphtha as feedstock.
Due to unprecedented rise in crude oil price to $139 a barrel,naphtha price rose to a record $1087 a ton after May 2008.
In the last budget, Government of India imposed 5 per cent customsduty on naphtha, further raising costs.
HPL procured naphtha from Indian Oil and other sources and wasforced to increase polymer prices in line with international pricetrend.