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LDPE prices stabilised in Russia

February 14/2020

MOSCOW (MRC) - After several months of the decrease of the price of low density polyethylene (LDPE) in the Russian market, they began to stabilise. Prices ceased to decline, and for some positions even a rise in prices was recorded this week, according to the ICIS-MRC Price Report.

The decrease in LDPE prices in the Russian market began in October due to excess supply and a seasonal decrease in demand. The dynamics of the price cuts of polyethylene increased in November - December, and only by mid-February was it possible to achieve relative stability by reducing supply and stable demand. Prices rose slightly for some grades of LDPE.

Some producers said that some LDPE grades reached such a level in January that they border the cost of production.
Producers did not resort to shutdowns but they reduced loading. In particular, Gazprom neftekhim Salavat and Kazanorgsintez reduced their output.

LDPE imports from Belarus were also reduced due to the shutdowns of part of the capacities from January. Thus, LDPE market is not oversupplied in February, although there was no need to talk about the deficit. At the same time, some companies still reported  temporary restrictions in LDPE supplies.

According to the company"s customers, Ufaorgsintez has temporary restrictions on shipments of the 108 LDPE, there are practically no stocks of this polyethylene, and shipments are made exclusively from the production.

A similar situation with LDPE is with Gazprom Neftekhim Salavat. The Salavatian producer reduced capacity utilisation in favour of a more profitable sale of ethylene.

In the first half of February, the company ships exclusively on contractual obligations; LDPE supplies will only begin next week on the spot market. Overall, spot prices of 108 grade LDPE have been stabilised in the range of Rb61,000-65,500/tonne CPT Moscow, including VAT, by mid-February.

And some sellers were in no hurry to sell their stocks. Prices for 158 LDPE have slightly increased, a slight increase in the prices of Ufa polyethylene was recorded, prices start from the level of Rb68,500/tonne CPT Moscow, including VAT, while a week earlier they were Rb1,000-1,500/tonne cheaper.
Author:Anna Larionova
Tags:PE, LDPE, Gazprom neftekhim Salavat, Kazanorgsintez.
Category:General News
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