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July LDPE prices rise in Russia

July 16/2021

MOSCOW (MRC) -- Contrary to many consumers" expectations, July low density polyethylene (LDPE) prices went up in the Russian market. Tight supply from virtually all producers was the main driver of the price rise, according to ICIS-MRC Price report.

Scheduled shutdowns for maintenance in June-July and lower utilisation of one of the producers in the first half of July led to a major reduction in supply of LDPE in the Russian market. At the same time, demand remained strong.  Under these conditions, LDPE prices began to go up, and the price increase of some grades exceeded Rb2,000/tonne from June.

Angarsk Polymers Plant shut its LDPE production capacities for a scheduled turnaround on 21 June. The outage will be quite long, the resumption of LDPE production is planned only in early August. Gazprom neftekhim Salavat will be the next one to shut its production for repairs, the shutdown is scheduled for 20 July and will last for about 30 days.

Since February, Ufaorgsintez has been operating with the reduced capacity utilisation at its LDPE production due to a fire in the gas distribution shop. And the timing of reaching full capacity has not been announced yet. The Belarusian producer - Polymir - has also reduced its footprint in the Russian market since May.

Back in the second half of June, many buyers reported unstable LDPE shipments from Russian producers, and this factor intensified even more in July. And tight supply began to drive prices up, although converters were trying to resist any price hikes.

Spot offer prices of 108 grade LDPE started from Rb132,500/tonne CPT Moscow, including VAT, in the last week of June, but some sellers" prices of this PE grade have grown to Rb140,000/tonne CPT Moscow, including VAT, by mid-July.
Author:Margaret Volkova
Tags:PE, LDPE, Angarsk Polymers Plant, Gazprom neftekhim Salavat, Polymir, Ufaorgsyntez, Russia.
Category:General News
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