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LDPE prices decreased significantly in Russia in the beginning of June

June 03/2020
MOSCOW (MRC) - Quarantine restrictions have led to a reduction in demand for low density polyethylene (LDPE) due to the coronavirus pandemic. The scheduled maintenance works of one of the producer did not allow balancing the market, and, as a result LDPE prices had decreased by more than Rb8,500/tonne by the beginning of June, according to the ICIS-MRC Price Report.

LDPE prices reached their highest level in the late of March on the back of high demand and supply disruptions from some producers. The situation began to change dramatically in the second half of April due to the coronavirus pandemic. Demand for LDPE began to decline, and prices fell.

The prices of polyethylene continued to go down during May, and Russian producers announced a significant reduction in prices for June deliveries. Kazanorgsintez shut part of its facilities for scheduled maintenances in the end of April. But the shutdown of the second-largest producer of LDPE in Russia did not affect the market balance; a drop in demand due to quarantine restrictions levelled this factor.

The demand for LDPE began to gradually increase in the late May, although still quite far from last year"s figures.
Angarsk Polymers Plant plans to shut its capacities for 30 day"s turnaround from 22 April.

Gazprom neftekhim Salavat will shut down its HDPE production from 1 July. The 108th LDPE was the most scarce in March; prices reached Rb76,000/tonne CPT Moscow, including VAT by the end of March.

But in the second half of April, the situation changed significantly, and prices of this polyethylene began to go down more rapidly than others. Prices of 108 LDPE from some sellers decreased to the level of Rb59,000/tonne CPT Moscow, including VAT by 1 June.

The situation was similar in the market of the 158 LDPE, which by the end of March has risen in price to Rb84,000/tonne CPT Moscow, including VAT and above. Sellers announced prices for June delivery at the level of Rb74,000/tonne CPT Moscow, including VAT.
Author:Anna Larionova
Tags:PE, LDPE, Gazprom neftekhim Salavat, Kazanorgsintez.
Category:General News
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