Effective 1st April 2006, price of gas supplied to IPCL under the Administered Pricing Mechanism of Government of India, was increased from US$ 3.86 / MMBTU to US$ 4.75 / MMBTU.
The domestic demand of polymer grew marginally by 1% primarily on account of higher prices. Declining polymer prices towards the end of the second quarter resulted in downstream processors adopting a wait and watch approach leading to a lower off-take by the end of the quarter.
Domestic demand for polyester registered a growth of 7% during the first half of the year. MEG produced by IPCL was also captively consumed in the manufacture of polyester, thereby ensuring integration.During the first half of FY 2006-07 IPCL continued to operate its plants at full capacity.
Production volume in the first half FY 2006-07 decreased from 2.87 million tonnes to 2.76 million tonnes primarily due to limited availability of gas feedstock on account of floods in Gujarat in August 2006. The floods in Gujarat have affected ethylene production by over 6,000 tonnes. It also resulted in an additional cost due to usage of imported propane to sustain regular production at Gandhar complex.
Indian Petrochemicals Corporation Limited
marketing@alchempro.com
