Contract PET prices in Russia to decrease in October

27 September 2016 10:42 Source:ICIS News

MOSCOW (MRC)--Contract prices of polyethylene terephthalate (PET) are expected to go down in October.

Formular contract offers for October, according to preliminary information, will drop by Rb500-800/tonne and will be at Rb75,300-77,400/tonne CPT (carriage paid to) Moscow, including VAT (value added tax), according to the ICIS-MRC Price report.

Contract PET prices are calculated according to the producers’ formula and recalculated once a month. Contract prices also imply a buyer’s obligation to purchase over 500 tonnes of PET chips every month at the agreed contract formula.

Spot prices were going down, following lower consumption. Last week, prices of Russian PET chips ranged between Rb81,000-85,000/tonne FCA (free carrier) from a plant’s warehouse.

The plants’ spot prices, including delivery to the central region, were at Rb81,000-86,500/tonne CPT Moscow, including VAT.

Buying activity traditionally subsides in the spot market in September. At the same time, there was a significant increase in inventories in the market because of the shutdown at Polief, Russia, in the first half of the month.

Prices of Belarusian PET were heard in the range of Rb79,000-81,000/tonne CPT Moscow, including VAT, in the spot market.

MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.

By Igor Grishenko