RIL alters pricing strategy; increases prices of PTA & MELT

26 May '23

2 min read

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Insights

RIL, India's largest player in the polyester value chain, has increased the prices of purified terephthalic acid (PTA) and MELT, while the price of monoethylene glycol (MEG) has remained unchanged.
RIL's pricing is influenced by market trends in China and crude oil fluctuations.
The revised prices will take effect from the upcoming Saturday.

Reliance Industries Limited (RIL), the largest contributor to India's polyester value chain, has altered its pricing strategy, hiking the prices of purified terephthalic acid (PTA) and MELT for the upcoming week. In contrast, the price of monoethylene glycol (MEG) remained unaltered. This shift is notable as RIL had been cutting the prices of polyester raw materials until last week when it lowered the cost of PTA and MELT while keeping the price of MEG steady.

RIL had also reduced the price of polyester staple fibre (PSF) from ₹6 to ₹104 per kg in the current fortnight. This decision to reduce the prices of PTA, MELT, and PSF was in line with the prevailing global trends.

According to the market sources, RIL has set the price of PTA at ₹82.00 per kg, reflecting an increase of ₹0.70. Meanwhile, MEG remains unchanged at ₹52.00 per kg, and MELT has seen a surge of ₹0.60, putting its new price at ₹88.20 per kg. These revised rates for polyester raw materials will be implemented starting from the coming Saturday.

Despite the recent increase, RIL is known for regularly reducing the prices of PTA and MELT to maintain alignment with international trends. Just a fortnight ago, the company dropped the price of PSF to ₹104 per kg, marking its second price cut in the last week.

The firm continually monitors price fluctuations in the Chinese market and crude oil sector to determine the pricing of its polyester raw materials. Given RIL's influential market presence in India, the country's market typically mirrors its price trends.

Fibre2Fashion News Desk (KUL)

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