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LDPE prices continue to rise dynamically in Russia

August 05/2020

MOSCOW (MRC) - The first days of August led to another price rise of low density polyethylene (LDPE) in Russia, while the dynamics of the rise in prices for polyethylene increased significantly, including due to scheduled maintenance works of some producers, according to the ICIS-MRC Price Report.

Two Russian producers in Angarsk and Salavat shut their production capacities for long-term scheduled maintenances in late June - early July, which immediately affected the market balance and led to an increase in LDPE prices.

Only the Angarsk Polymer Plant had resumed production after the shutdown by the beginning of August, while in September three more producers are expected to stop for turnaround. Good demand and limited supply of polyethylene from most producers led to another surge in prices.

At the same time, for some items the rise in prices turned out to be more significant in comparison with July. Angarsk Polymer Plant shut its capacities for 30 days turnaround from 22 June, however, the plant managed to resume production of polyethylene after the repair only by 3 August.

The situation is similar with Gazprom neftekhim Salavat, the shutdown started on 1July and was planned to last for 30 days. But the company"s clients said LDPE production was likely to begin in the second decade of August.

Demand for LDPE was at a good level in July, and some sellers sold all their monthly quotas by the middle of the month. A similar situation with demand is expected in August.

Another series of scheduled maintenances are expected in September. Shutdowns are expected at the facilities of Tomskneftekhim and Ufaorgsintez in the first days of the first month of autumn, although the turnarounds will not be so long.

Kazanorgsintez will shut down its capacities for scheduled maintenance works from 17 September to 13 October.
Supply of LDPE was limited in the spot market in the first days of August, some sellers were in no hurry to sell their August volumes, expecting further price growth.

Price offers for 108 PE started from Rb83,000/tonne FCA, including VAT. Price offers for 158 PE started from Rb88,000/tonne FCA, including VAT.
Author:Anna Larionova
Tags:PE, LDPE, Angarsk Polymers Plant, Gazprom neftekhim Salavat, Tomskneftehim, Ufaorgsyntez.
Category:General News
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