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Reduction in PP prices has lowered

December 09/2010

MOSCOW (MRC) -- Weakening of import polypropylene (PP) pressure suspended the reduction in polymers prices in the Russian market, according to MRC analysts.

Succession of summer shutdowns for scheduled maintenance of some Russian PP producers   stipulated a considerable growth of imports volumes. Insufficient offer of the Russian raffia was compensated by the supplies from external markets. At the end of September the volumes of homo-polymer propylene imports  grew up to record 15.9 KT, at that about 11.6 KT are PP supplies from Turkmenistan and Ukraine.

In October because of technological problems the volumes of PP production at Ufaorgsintez and Stavrolen (Lukoil Group) reduced. Also the imports supplies dropped. As a result, despite seasonal fall in demand, there was no surplus offer in the Russian market. 

Reduction in PP prices has lowered

In November demand for PP kept on falling, many market players limited the purchases of polymers up to current needs. The Russian producers faced serious pressure of cheaper  import PP, in particular, from Turkmenistan. By mid-month the prices for the Russian raffia were lowered on average by 1.500 RUB./t and were fixed within the range 57.500 Ц 59.000 RUB./t, including VAT, FCA.

By early December the pressure of import supplies from Turkmenistan weakened. Imports supplies from Turkmenistan were considerably reduced. Because of almost 2-week suspension of Linik, the terms of PP delivery from Ukraine were shifted. All these factors had an impact on   the prices: November level of prices remained in December as well. 

At the same time raffia consumers go on limiting the purchases volumes trying to reach a further decline in prices. On the contrary, there is a non-considerable deficit in the market of molded PP, connected with long absence of material supplies from  some producers. The price offer for molded PP-homo is within a wide range: 59.500 Ц 62.000 RUB./t., including VAT, FCA.


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