Nizhnekamskneftkehim reduces significantly April PS prices for Russian market

MOSCOW (MRC) -- Nizhnekamskneftekhim (part of TAIF group) has reduced its April selling polystyrene (PS) prices by Rb10,000/tonne, according to the ICIS-MRC Price report.

Thus, general purpose polystyrene (GPPS) for injection moulding and extrusion was offered at Rb76,000-80,000/tonne, whereas high impact polystyrene (HIPS) - at Rb80,000-84,000/tonne CPT Moscow, including VAT.

Traders reduced their prices of material by Rb12,000/tonne for some customers, and prices came close to the lower price range. A major trader offered GPPS at Rb76,500-77,500/tonne CPT Moscow, including VAT, and HIPS - at Rb80,500-81,500/tonne CPT Moscow, including VAT.

Demand has been subsiding rapidly in the construction segment of the Russian PS market. Buyers reduced their orders for April purchasing of material from some traders by half. A number of small- and medium-sized converters were forced to temporarily suspend production because of the tightening of the quarantine conditions. Demand for finished products remained strong in the food packaging segment.

PJSC "Nizhnekamskneftekhim" (NKNKh) is 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 pipelines, etc..). NKNKh produces more than 120 types of chemical products, including synthetic rubber, polyethylene, polypropylene, polystyrene, surfactants. Nizhnekamskneftekhim is a member of TAIF Group.
MRC

MOSCOW (Market Report) -- Penoplex, Russia's largest producer of foaming polystyrene (PS), has reduced its April selling prices of general purpose polystyrene (GPPS) for the Russian market by Rb10,000/tonne from the previous month, according to ICIS-MRC Price report.

Demand for the Kirishi plant's material remained quite good.

Demand has been subsiding rapidly in the construction segment of the Russian PS market. Buyers reduced their orders for April purchasing of material from some traders by half. A number of small- and medium-sized converters were forced to temporarily suspend production because of the tightening of the quarantine conditions.

Penoplex is a large Russian producer of polymer-based building and decorative materials. The company began its activity in 1998 with the launch of Russia's first line for the production of heat-insulating materials from extruded polystyrene foam under the PENOPLEX trademark. The company has eight production sites, seven of which are located in Russia and one - in the Republic of Kazakhstan (Almaty region), with a total production capacity of 4 million cubic metres.
MRC

MOSCOW (MRC) -- Amid more than a double fall in oil prices, Middle Eastern producers were forced to make an equally great reduction in export polypropylene (PP) prices for April shipments to the CIS markets, according to ICIS-MRC Price report.

Negotiations over April prices of Middle Eastern PP began in the middle of last week. All market participants said Middle Eastern PP suppliers significantly reduced their export prices of propylene polymers for this month's shipments, in most cases, the price reduction was USD90-100/tonne.

Deals for April shipments of propylene homopolymers (homopolymer PP) were discussed in the range of EUR870-920/tonne FCA, down by EUR90/tonne from March. Deals for block copolymers of propylene (PP block copolymers) were negotiated in the range of EUR940-980/tonne FCA, down by EUR100/tonne from the previous month.

Some market participants also reported higher offer prices for US PP. Thus, PP block copolymer for April shipments was offered at an average of USD940-960 per tonne, CIF.
MRC

MOSCOW (MRC) -- Imports of Nizhnekamskneftekhim's general purpose polystyrene (GPPS) and high impact polystyrene (HIPS) to Ukraine rose in the first two months of 2020 by 14% year on year to 1,800 tonnes, according to MRC's DataScope report.

This figure was at 1,580 tonnes in January-February 2019.

The share of Nizhnekamskneftekhim's material grew to 57% in the overall structure of imports to the Ukrainian market for the first two months of 2020 from 40% in January-February 2019.

February imports of Russian material increased by 57% to 1,100 tonnes from 700 tonnes in January 2020, imports were at 920 tonnes in February 2019. The share of Nizhnekamskneftekhim's GPPS and HIPS was 65% in February versus 39% a year ealrier.

Overall imports of these polystyrene grades into the country fell in the first two months of 2020 by 21% year on year to 3,140 tonnes from 3,950 tonnes in January-February 2019. The share of Iranian material in the total imports rose to 20% (620 tonnes) from 6% (250 tonnes) a year earlier, whereas the share of deliveries from Hungary grew to 19% (590 tonnes) from 10% (390 tonnes). Germany, one of the last year's largest importers, have not shipped material to the region since the beginning of this year.

MRC

MOSCOW (MRC) -- Negotiations over prices of European polyvinyl chloride (PVC) for April shipments to the CIS countries began last week. Ethylene prices fell significantly in Europe this month, however, European producers intend to limit the reduction in export PVC prices for April, according to ICIS-MRC Price report.

The April contract price of ethylene was agreed down by EUR200/tonne from the previous month, which theoretically allows to talk about a reduction of EUR100/tonne in net cost of PVC. However, European producers do not intend to make a proportional reduction in PVC export prices, aiming to maintain the necessary margin of polymer production. A decrease of EUR65-80/tonne in export PVC prices for April shipments to the CIS markets has been discussed.

Demand for PVC subsided from consumers in the CIS countries in April due to the quarantine measures taken by local authorities. However, many consumers do not intend to refuse from April purchases. There are no restrictions on export quantities of European producers, with the exception of the Polish manufacturer, which will shut its production capacities for maintenance.

Several buyers said some producers wanted to limit the reduction in export PVC prices by the amount of EUR65/tonne from March, but consumers resisted and hoped to achieve a greater reduction in prices of resin.
MRC