MOSCOW (MRC) -- Under the pressure of stronger demand and tight supply, prices of low density polyethylene (LDPE) have risen on a weekly basis since early March. LDPE prices had gone up by more than Rb14,000/tonne by the end of the month, according to ICIS-MRC Price report.
Demand for LDPE in the Russian market has begun to recover actively since late February, after oversupplied December and January. In early March, the need in polyethylene (PE) grew even more due to early spring in a number of regions, whereas most sellers' supply was tight, and some of them had sold out all their March quotas by the middle of the month. As a result, LDPE prices rose on a weekly basis, and some sellers announced a further price increase for April shipments this week.
108 grade LDPE was the most scarce PE grade throughout the whole March. The key suppliers - Angarsk Polymers Plant, Ufaorgsintez, and Kazanorgsintez - virtually did not have large stocks of this PE. And increased demand led to a price rise from Rb62,500/tonne CPT Moscow, including VAT, in the last week of February to Rb76,000/tonne, CPT Moscow, including VAT, by the end of March.
The situation was also similar with 158 grade LDPE in the second half of March, many sellers had sold out all their March quantities by the middle of last month, whereas demand remained at good. The scheduled maintenance at Kazanorgsintez’s production capacities (from 11 April to 10 May) only aggrevated the situation. And if at the beginning of the month prices of this PE started from Rb70,000//tonne, CPT Moscow, including VAT, then by the end of March, they went up to Rb84,000/tonne CPT Moscow, including VAT, and higher.
In late March, some producers announced an increase of Rb3,000-5,000/tonne in April LDPE prices.
MRC