While Reliance Industries has reportedly sliced its low-density ethylene (LDP) prices by Re 1 per kilogram (Rs 1,000 per tonne), IPCL is said mulling over slashing the prices by anything between Rs 800 and Rs 1,600 per tonne next month.

The downward revision in prices is said to be also in line with the global trend. Internationally, prices are said to be currently ruling at $520 to $540 per tonne, down by $10 to $20 in comparison to the September prices.

Sources said that while there always was a pressure on exports and domestic sales from the very beginning of the current fiscal on back of a global slowdown, the 11 September attack has taken the wind out of the polymer industry, as there has been a cascading impact on all the downstream user industries.

The situation is said to be so bad that inventories have piled up and sales are said to be down by about 30 per cent, in comparison to the corresponding period last year. To cap it all, large users of polymer-based products deliberately purchased large quantities last month to stack up inventories, anticipating steep rise in prices on fears of a prolonged war in Afghanistan. With sales just not picking up, notwithstanding a major ongoing festival season, the prices are expected to drop further.

Citing examples, the sources said sales of laminated products has been severely affected following the slowdown in the automobile industry. Likewise, the demand for woven sacks has dropped following recessionary conditions in the cement industry, which uses plastic woven sacks for packaging cement.

The sources said that environmental concerns have already adversely affected the sales and now it seems that the recent events are going to simply break the backbone of the industry. Nevertheless, strong players like Reliance Industries would be able to weather the storm and probably emerge stronger, say analysts.