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LDPE production resumed in Russia

October 07/2009
MOSCOW (MRC) -- Russian companies are gradually resuming production of low-density polyethylene (LDPE) after the scheduled maintenances carried out in September. Kazanorgsyntez was the last one to start its second LDPE line. Salavatnefteorgsyntez and Ufaorgsyntez had resumed production a week before.

Consecutive suspensions for scheduled maintenance of several Russian polyethylene producers in September  resulted in a serious increase in prices for the 158th and the 153rd LDPE grades. Prices for Kazan feedstock used to produce shrinkable films sometimes mounted to RUB52.000Ц52.500/mt, including VAT.

Last week, Salavatnefteorgsyntez resumed shipments of LDPE to the domestic market. As well, at the end of the last week, Ufaorgsyntez began to produce the 158th LDPE grade; however, shipments to the domestic are not regular yet, due to production problems. Kazanorgsyntez started production of the 153rd grade on Tuesday.
Resumed production of the 158th LDPE grade and the seasonal decrease in demand made prices go down slightly. Salavaynefteorgsyntez and Ufaorgsyntez offer that grade at RUB43.500Ц44.500/mt, including VAT. Prices for KazanorgsyntezТs 158th grade vary within the range of RUB45.000Ц46.000/mt, FCA Kazan.

Related news - "Russian pipe-grade PE market tightening"

For more detailed information on the Russian polyethylene market, see Price reports.
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