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PP prices risen in Russia by 17% and higher since early 2021

March 02/2021

MOSCOW (MRC) -- A shortage of polypropylene (PP) intensified in the global markets in February, prices have reached record levels for the past few years. A similar situation was also registered in the Russian market, PP prices reached record highs, according to ICIS-MRC Price report.

In the previous years, PP became cheaper in the Russian market in January-February under the pressure on weak demand and oversupply. This year"s situation change dramatically. High prices in foreign markets put a major pressure on prices in Russia. The rise in prices of propylene homopolymer (homopolymer PP) began in January, but the dynamics of price growth intensified in February. Prices have increased by more than 17% since the beginning of the year.

The shortage of PP in the global markets was exacerbated in the second half of February by unplanned shutdowns of several producers in the United States due to frosts. The shortage of PP in Europe pushed prices up by 15% in February, whereas in Turkey prices of homopolymer PP raffia exceeded USD1,800/tonne CFR last week.

Such a rapid rise in PP prices in a number of the world"s regions since the beginning of the year also pushed the largest producers to constantly raise prices in the Russian market. Russian producers" export prices for a number of destinations have been higher than domestic ones for a long time.

Imports of cheap PP from Turkmenistan decreased, and prices grew to USD1,515/tonne FCA/FOB in the last export trades, whereas export prices averaged USD1,050/tonne FCA/FOB in early December.

Supply of PP was tight in the Russian market in February, some converters could not fully meet their needs in polymer even amid record high prices. The situation with the polymer availability is unlikely to improve in March.

Some sellers" spot offers for homopolymer PP raffia had exceeded Rb130,000/tonne CPT Moscow, including VAT, by late February, whereas prices of this PP grade did not exceed Rb104,500/tonne CPT Moscow, including VAT, back in early January.
Author:Margaret Volkova
Tags:PP, homopolymer PP, Russia, USA, Turkmenistan, Turkey.
Category:General News
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