MOSCOW (MRC) -- Nizhnekamskneftekhim (part of the TAIF group) has reduced its December selling prices of high impact polystyrene (HIPS) and general purpose polystyrene (GPPS) by Rb2,000/tonne for Russian buyers, according to ICIS-MRC Price report.
At the same time, Nizhnekamskneftekhim adopted an unconventional approach to pricing on the back of lower prices of material in foreign markets. Thus, December polystyrene (PS) prices decreased by Rb3,000/tonne and they will roll over for January for those buyers that will contract PS quantities for two months in advance. For those buyers that will contract only December quantities, this month's prices will be reduced by only Rb1,000/tonne.
Almost all the interviewed market participants said that under such conditions, buyers' choice was obvious and most of them would choose an option with the reduction of HIPS and GPPS prices by Rb3,000/tonne in December and their roll-over for January 2020.
Supply of PS from Nizhnekamskneftekhim will increase this month, several buyers for whom quantities were limited last month said the producer had fully met their orders for December-January. On the back of this, the Russian PS market is expected to become balanced and the upper range of Nizhnekamskneftekhim's material is expected to decrease by about Rb5,000/tonne and to come closer to the lower one.
As reported earlier, Nizhnekamskneftekhim reduced its PS prices for the Russian market by Rb2,000/tonne in November, despite a shortage of PS in the Russian market.
PJSC "Nizhnekamskneftekhim" (NKNK) - one of the largest Russian manufacturers of petrochemical products. The industrial complex of the company includes ten major production plants and ten departments (Railway Transport, Ethylene trunk, etc..). NKNKh produces more than 120 types of chemical products, including synthetic rubber, polyethylene, polypropylene, polystyrene, surfactants. Nizhnekamskneftekhim is a member of TAIF Group of Companies.
MRC