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LDPE prices in Russia are steady, maintenance works at Angarsk and Salavat plants are over

August 16/2019

MOSCOW (MRC) -- Prices were steady in the Russian low density polyethylene (LDPE) market in the first half of August, supply of polymer has been gradually increasing due to the end of the outages at two production facilities, according to ICIS-MRC Price report.

Simultaneously, two Russian LDPE producers - Angarsk Polymers Plant and Gazprom neftekhim Salavat - shut down their production capacities for maintenance in late June-early July. Outages of two plants reduced the excessive supply of polyethylene (PE) in the market, but did not lead to a shortage. Prices have remained relatively steady in the Russian LDPE market since the second half of July. Tomskneftekhim and Kazanorgsintez will shut their production capacities for turnarounds in September.

The plants" customers said Angarsk Polymers Plant and Gazprom neftekhim Salavat finished their maintenance works much later than planned, at the same time, certain restrictions in operations remained. Ufaorgsintez also reported disruptions in its operations, some of the plant"s LDPE production capacities were taken off-stream last weekend because of technical issues.

Nevertheless, production problems at some production sites neither affected the balance of the Russian LDPE market, nor did they put pressure on prices. In addition, some market participants reported an increase in  supply of PE from the Belarusian producer.

Overall, prices of 108 grade LDPE have been in the range of Rb80,500-83,000/tonne CPT Moscow, including VAT, since early August. The price spread of 158 grade PE was wider, deals were done in the range of Rb81,000-85,500/tonne CPT Moscow, including VAT.

Shutdowns for maintenance at three plants simultaneously are also scheduled from late August to September. In the last week of August, Ufaorgsintez will shut its production of 158 grade LDPE for a one-week turnaround, and in late September-early October, the output of 108 grade PE will be also reduced by 50%.

Tomskneftekhim plans to take off-stream its production capacities for a two-week turnaround in September, but the exact dates have not been announced yet.

In September, Kazanorgsintez also plans to carry out consecutive maintenance works, which will begin on 26 September and will last about 30 days, at some of its production capacities.


mrcplast.com
Author:Margaret Volkova
Tags:PE, LDPE, Gazprom neftekhim Salavat, Tomskneftekhim, Angarsk Polymers Plant, Kazanorgsintez, Ufaorgsyntez, Russia.
Category:General News
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