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The Russian market expects fall of LDPE prices

October 07/2010
MOSCOW (MRC) A considerable quantity of market players expect fall of prices with a view to restart of LDPE production in Kazan and Salavat but it is entirely possible that export could hold the fall, as per MRC Price market reports.
The Russian market expects fall of LDPE prices

 

In mid September LDPE plants in Kazan and Salavat were closed for maintenance. In this connection some market players expected gap in the domestic market and as a result price rise. But the expectations were not realized. Despite the continuous reduction of Kazan and Salavat  polyethylene offer there is still a sufficient number of other producers of the material. The prices have remained unchanged for a considerably long time and they are within the range of RUB57.00060.000/mt, VAT included, FCA, for the 158th LDPE.

 

At the same time, September LDPE market steadiness was provided by the reduction of export shipment and considerable deliveries from Belarus. To compare in August the total PE export was 12 000 t, in three weeks of September shipments to the external market were reduced to 1.5 KT. Also early October planned shutdown of LDPE plant in Novopolotsk (Belarus) should be taken into account, this may impact the volume of deliveries to Russia.  

 

By October LDPE external markets situation became more favorable for the Russian fabricators. Reasonably high level of prices and deficit is now in the markets of Asia and South America. Some Russian fabricators have already announced their intention to increase the PE export in October. And the projected further quotations growth in the external markets may only increase the exports appetites of the Russian manufacturers. Similar situation happened in the beginning of the year when big export shipments resulted in deficit in the internal market and as a result price rise.

 

A more detailed information - in Price market reports Polyethylene in Russia.

 

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