MOSCOW (MRC) -- Market players said they expect prices of Russian general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) to increase in September, following higher prices of styrene monomer (SM) in the domestic market and the devaluation of the rouble, according to ICIS-MRC Price report.
According to unconfirmed information, Gazprom neftekhim Salavat and Penoplex informed their buyers about a September price increase. Sources have not received the final offer prices of Nizhnekamskneftekhim's polystyrene (PS) yet. Prices of Russian GPPS grades will exceed Rb100,000/tonne, including VAT. Some market players said they expect spot prices of Russian GPPS to rise to Rb110,000/tonne CPT Moscow, including VAT.
The reason for the increase was higher SM prices in the Russian spot market. The August devaluation of the rouble was aslo a significant factor. Despite the fall in PS prices in the foreign currencies in foreign markets, the cost of imported material rose in the national currency.
PS supply was tight in the Russian domestic market in August. Only Nizhnekamskneftekhim's grades were available among the grades of Russian HIPS and GPPS producers in the spot market. Prices of Nizhnekamskneftekhim's PS remained unchanged in August. Buying activity was good.
Gazprom neftekhim Salavat continued to be idle, conducting maintenance works at the plant. There were no sales of Gazprom neftekhim Salavat's HIPS and GPPS in the spot market in August. The needs of major contract customers were met by the accumulated stocks.
The Kirishi plant of Penoplex continued to produce GPPS. Nevertheless, the company limited its GPPS sales in the Russian domestic market. The bulk of the output is used for the plant's processing needs to produce XPS.
MRC