MOSCOW (MRC) - In spite of the decline of high season, prices in June in the Russian market of extrusion of polycarbonate (PC) did not reduce, moreover, the prices for imported PC increased significantly compared to the May level, according to ICIS-MRC Price Report.
First of all, it is worth noting the rise in prices for imported PC granules. European producers have begun to raise export prices since mid-May because of the PC shortage, resulted from several force majeures on phenol plants in Europe. This, in turn, led to the price rise for PC production chain.
The low end for extrusion PC in the European market now is at EUR2,350/tonne FD NWE. June import price for extrusion PC granules from Sabic Innovative Plastics has reached the level of EUR2,300/tonne, CFR St Peterburg. Many Russian converters plan to reduce the consumption of imported PC because of the high domestic prices, fuelled by the next drop of the rouble. Russian PC in this case is more preferable.
However, at the moment, market players reported a shortage of the material and the lack of available volumes.
Kazanorgsintez's PC prices for June were at Rb154,000/tonne CPT Moscow, including VAT. The price remained steady from the May level.
Some participants fear the increase in the price for Russian PC to Rb160,000/tonne, CPT Moscow, including VAT at the end of June, but the factory denies these rumours. As it was previously reported, Kazanorgsintez,the only PC producer in Russia, plans to shut its PC volumes on the maintenance works from 2, July to 29, July.
At this time in the market, despite the traditionally weak demand in mid-summer, is likely to be a shortage of PC.
Some converters are also planned turnarounds in this period, but for a shorter period.
MRC
MOSCOW (MRC) - Consumption of polycarbonate (PC) granules in Ukraine decreased to 956 tonnes in January-May 2015, down 41% compared to the same period last year, according to a MRC DataScope report.
Reduction in Ukraine's PC consumption in the market that is completely dependent on imports, largely resulted from price rise for PC granules in Europe and limited export quotas from the producers. At the moment the situation in the European PC granules market is critical. On the back of force majeures in May there was formed a deficit of phenol, which led to PC granules shortage. This caused another jump in prices for the polymer.
Producers explained the price increase by the need to obtain a minimum margin and to cover costs, incurred previously. Besides, given the current exchange rate and strengthening of the dollar, European producers prefer to sell in dollars and limit the supplies to other regions.
Thus, the Ukrainian market has a deficit of PC granules, especially in the extrusion and bottled segments. It is expected that the situation will improve in late July - early August. However, during this time prices can be increased again.
Traders are considering the delivery of Iranian PC granules from Khuzestan Petrochemical (Sirjangostar Global Group) in the case of the further growth of European prices. However, there were no purchases of Iranian material so far.
Some market players said they suspended their projects because of the limited solvency and working funds problems. For this reason, further purchases are also suspended.
Most of all, the buying interest falls for specialized and high-tech brands PC. At the same time, domestic competition between the major players in the Ukrainian market has increased. Most Ukrainian companies have kept business contacts with Russia, however, practically all agreements with Crimea were terminated.
At the beginning of June contract prices for injection moulding PC granules in Europe were in the range of EUR2,400-2,550/tonne FD NWE, and for extrusion PC at EUR2,350-2,500/tonne FD NWE. European PC granules prices are expected to rise again in the beginning of the third quarter by EUR150-200/tonne, which, after affects the other regions.
MRC