MOSCOW (MRC)--Russian prices for low density polyethylene (LDPE) reached a peak in September but in October prices began to gradually decrease, according to ICIS-MRC Price Report.
The largest price decrease in October was recorded for PE 108 grade.
Prices for LDPE have been decreasing dynamically since the second half of April under the pressure of low demand.
The price trend changed in August due to preventive shutdowns of several producers.
However, the growth in prices of LDPE was short-lived, and from the second half of October, the decline in demand was the main reason for the smooth rollback in prices.
The scheduled shutdown of Ufaorgsintez capacities for prevention and limited capacity utilisation of Kazanorgsintez in line with strong demand continued to put pressure on prices during September.
Kazanorgsintez kept restrictions on the production of LDPE in October, but the supply of polyethylene from other producers improved, while demand began to decline.
The decline in consumer activity was particularly seen in the second half of the month.
Most of the converters closed their deals for October supplies and waited, anticipating further price cuts in November.
Prices for PE 108 in the early November decreased to Russian roubles (Rb) 82,000-85,000/tonne ($1,407-1,459/tonne) FCA (free carrier) Russia, including VAT.
Prices for PE 158 in the early November were at Rb88,000-90,500/tonne FCA Russia, including VAT.
Prices for LPDE for shrinkable films in the early November decreased to Rb91,000-93,000/tonne FCA Russia, including VAT.
($1 = Rb58.25)
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.