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Russian producers raised the prices for LDPE

April 06/2011

MOSCOW (MRC) -- In early April some Russian producers expectedly raised the prices for LDPE by 830 1.770 RUB/t, according to ICIS-MRC Price report. The prices were increased only by Kazanorgsyntez and Tomskneftehim. The current price rate was forecasted and mainly caused by future maintenance shutdown of LDPE capacities of Kazanorgsyntez in late April. Also a further growth of prices for LDPE in Europe and Asia played its considerable role. 

From the beginning of  April because of spring floods the lorry traffic was limited in many federal roads. As market players note, this factor has already started affecting the market. There are inconsiderable problems with motor transport freight to separate regions, at that tariffs for cargo delivery have grown, on average, by 10%. But serious breakdowns arent reported yet .

Demand for LDPE has increased recently, there is enough material in the market. Though taking into account long-term maintenance shutdowns of enterprise in Kazan, many market players dont exclude a slight lack of 108 and 153 LDPE by the end of the month. Before May holidays many converters try to provide material stocks to the maximum

Price offer for LDPE is within a wide range. 158 PE is offered, on average, for 60.000 64.500 RUB/t, including VAT, FCA. Low border of prices is characterized for Salavat and Ufa materials. LDPE for production of shrinkable films is offered, on average,  for 63.700 66.000 RUB/t, including VAT, FCA.

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