Mumbai, India – Reliance Industries Limited (RIL) has reported significant falls in prices for its synthetic rubber materials in the quarter ended 30 June.
Prices for polybutadiene rubber (PBR) and styrene butadiene rubber (SBR) prices dropped by 36% and 30% respectively compared to the previous three months, RIL said in a 20 July interim statement.
The Indian group linked the declines in the first quarter of its fiscal 2018 to a drop in natural rubber price and butadiene feedstock prices
“On a Q-o-Q basis, butadiene prices decreased by 59% due to drop in natural rubber prices and rise in inventories in China,” said the Indian petrochemicals major.
RIL’s financial statement added that the PBR and SBR ‘delta’ – generally defined as the ratio between the change in the price of assets to that of their derivatives – increased by 108% and 110% respectively.
RIL’s synthetic rubber operations are part of the group’s Petrochemicals Business unit, which also produces a wide range of polyolefins, PVC, polyester and related feedstocks and chemicals.
The rubber pricing comments accompanied RIL’s unaudited results, showing sales up 26.7% to $14.0 billion (€12.0 billion), and net profit excluding exceptional items 12.8% higher at $1.2 billion, compared to the same three months of last year.
Commenting on the results for the refining and petrochemicals group as a whole, chairman and managing director Mukesh Ambani said the “portfolio of assets in the refining and petrochemicals business contributed to considerable improvement in our earnings for the quarter.”