Olefin chain margins during the year were weaker compared to the corresponding previous year as increase in raw material prices was higher compared to the increase in product prices.
On the product side, international prices of Polyethylene (PE), Polypropylene (PP), Linear Alkyl Benzene (LAB), Poly Butyl Rubber (PBR) and Caustic were higher by 6 percent, 7 percent, 27 percent, 23 percent and 23 percent respectively, while prices of Poly Vinyl Chloride (PVC) and Mono Ethylene Glycol (MEG) were lower by 12 percent and 20 percent respectively.
On the raw-material side, price of naphtha and propane was higher by 27 percent and 14 percent respectively. Moreover, there was over 50 percent increase in price of natural gas, the major feedstock for IPCL's Gandhar complex, with effect from July 2005.
Increase in raw material prices was partially offset by higher availability of natural gas from the Panna-Mukta-Tapti (PMT) gas fields from April 2005, which led to reduction in consumption of costlier propane.
The domestic demand for both polymer and polyester products remained robust, with polymer demand registering a growth of 17 percent and polyester 10 percent, compared to corresponding previous year. Domestic demand for MEG increased by 17 percent while that of LAB also increased by 17 percent.
IPCL continued to operate its major plants at full capacity and production volume touched 5.4 million tonnes, representing an increase of 4 percent compared to corresponding previous year. Production of Acrylonitrile (ACN) and MEG increased 8 percent to 303,600 tonnes, while production volume of LAB, PBR, Acrylates, Caustic, Acrylic fibre, chemicals, byproducts and other intermediates and products increased 7 percent to 2,634,400 tonnes.
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IPCl's business comprises of polymers, synthetic fiber, fiber intermediates, solvents, surfactants, industrial chemicals, catalysts and adsorbents.
Indian Petrochemicals Corporation Limited
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