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(ICIS-MRC) -- After cheapening in the external markets, LDPE prices have been
falling in the Russian market as well, according to ICIS-MRC Price Report.
2010 was quite successful for polymers market after crisis 2008. Overall
consumption of polyethylene in Russia grew more than by 30% compared to 2009 and
exceeded 1.7 mln tons. Demand for LDPE increased by 29% and made 565 KT.
Although hopes of many market players for 2011 didn’t come
true.
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This year demand for LDPE in Russia keeps on growing but not that quickly
as in 2010. Russian producers reduced LDPE output by 4%, at the same time export
supplies got down by 12%. Excessive offer resulted in competitiveness
among producers in the domestic market.
Nearly 1-month shutdown for maintenance of LDPE production at
Kazanorgsyntez didn’t allow to reduce excessive offer.
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In the beginning of the last week the price for LDPE from Tomskneftehim
was reduced by
1.500 RUB/t. At the end of the week contract prices for
polyethylene from Kazan were reduced, on average, by 500 – 1.000 RUB/t,
depending on the grade. The price for 158 LDPE was within the range 63.000 –
64.500 RUB/t, including VAT, FCA Moscow. In June, some Russian producers plan to
increase LDPE exports to balance the market offer and demand.
Under the pressure of low demand from the late March till now, quotations
for LDPE in Asia fell more than by USD 150/mt. In the European market spot
prices fell on average by EUR 50-70/mt.
mrcplast.com
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