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Indo Rama Synthetics halts production

Indo Rama Synthetics halts production
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First Published: Wed, Aug 06 2008. 10 43 AM IST
Updated: Wed, Aug 06 2008. 10 43 AM IST
Reuters
New Delhi: Polyester maker Indo Rama Synthetics has halted production from 1 August till mid August due to high input costs and its inability to cut prices leading to a slump in customer demand, a top official said.
“Customers are waiting for a softening as prices of the crude-oil derived raw materials of polyester have fallen internationally with crude off its peak of $147.27 a barrel,” Vivek Kaul, Indo Rama’s, president, finance told Reuters.
However, the raw material prices remain firm in domestic market as they trail by a month.
“There has been a sharp correction in raw material prices with the result that the market for our product has started expecting lower prices whereas we are still getting raw material at much higher prices,” Kaul said in an interview.
Prices could not be cut immediately as costs remained high, Kaul said. The firm will sign new contracts for raw materials from September onwards.
Kaul said the pause in production would not affect its monthly sales target of 40,000 tonnes, as it had 32,000 tonnes of stocks with it. It expects another 10,000 tonnes to come from resumed production after August 15.
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First Published: Wed, Aug 06 2008. 10 43 AM IST