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Reliance raises yarn prices by 4%

Reliance Industries, India's largest petrochemicals company, on Monday raised the price of partially oriented yarn for the second time in less than a month -- and after the government imposed anti-dumping duties on foreign suppliers.

Reliance, the core company of one India's largest and fastest growing conglomerates, raised the price by 4 per cent, to Rs 65 per kilogramme from Rs 62.50, with immediate effect, a company spokesman said.

Earlier this month, the price was raised by Re 1 per kg, he said.

Prices of imported yarn are expected to rise after the government imposed anti-dumping duties on imports from certain foreign manufacturers.

"The government has imposed anti-dumping duties on POY imports from some companies in Taiwan, Thailand, Indonesia and Malaysia," said the spokesman, adding the duties ranged from $0.181 per kg to $0.801 per kg.

Analysts said the anti-dumping duty gave companies like Reliance Industries an opportunity to announce further increases in the future.

"Domestic producers have some scope to announce further price hikes over the next three to four months because of the anti-dumping duty," said an analyst at a foreign brokerage.

At the Bombay Stock Exchange, shares of Reliance ended 4.4 per cent higher at Rs 308.85, while the 30-share Sensex closed 2.13 per cent higher. Reliance has a weighting of nearly 14 per cent in the index.

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