Published on October 12, 2018
Reliance Industries Ltd (RIL) raised prices of at least seven key petrochemicals in the last quarter to offset higher crude oil prices and counter the effect of a weakening rupee. Analysts tracking the prices believe that prices has increased by 10-21% in the second quarter of this fiscal while year-on-year increase is 17-61%. These products include purified terephthalic acid (PTA), monoethylene glycol (MEG), polyester staple fibre (PSF), partially oriented yarn (POY), polypropylene or high density polyethylene (HDPE) and linear alkyl benzene (LAB). “Its more about the rupee decline and crude price which have increased petrochemicals prices in Asia. There is not much change in terms of demand-supply. Besides, RIL commands the highest premium in the Indian petrochemicals market. If you see pricing for RIL’s key products, it has been consistently going up in past three months,” an analyst tracking RIL said on condition of anonymity. RIL is among the top 10 producers for key petrochemicals. Last fiscal, the company saw revenue from the petrochemicals segment increase sharply by 35.5% ₹ 125,299 crore. Operating profit in the segment was up by 63% to its highest ever level of ₹ 21,179 crore.