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MOSCOW (MRC) -- Weak seasonal demand
and oversupply became the main reason for the reduction of low density
polyethylene (LDPE) prices in the Russian market. The key suppliers announced a
price cut of Rb2,000-4,000/tonne for February shipments, according to ICIS-MRC Price
report.
January was short due to the long New Year holidays,
moreover, demand for LDPE is always very weak in the first months of the year
due to a number of factors. Despite these factors, supply of polyethylene (PE)
was excessive from some producers. And weak demand from the key export markets
did not allow to get rid of oversupply of LDPE in the Russian market. As a
result, many sellers announced price reductions for February
shipments.
PE for the production of thick films (108 grade LDPE)
accounted for the weakest demand in January, offer prices of this LDPE grade had
reached Rb85,500-87,000/tonne, CPT Moscow, including VAT, by February. At the
same time, the company"s customers said Angarsk Polymers Plant intends to reduce
its output of 108 grade LDPE by one third year on year this year.
Demand
for 158 grade PE was slightly stronger last month than that for 108 grade LDPE.
In addition, there were temporary disruptions in Kazanorgsintez"s PE shipments.
Offer prices for February deliveries of 158 grade LDPE were heard in a rather
wide range, as follows: Rb91,500-96,400 CPT Moscow, including VAT. |
