Russian producers raise June PP prices

MOSCOW (MRC)–Russian producers further raised their prices of polypropylene (PP) for shipments to the domestic market, with the extent of increases ranging from Russian roubles (Rb) 500/tonne ($8/tonne) to Rb3,000/tonne, depending on the grade and producer, according to ICIS-MRC Price report.

PP prices have been going up in the Russian market since the beginning of the year, and June is no exception. Many Russian producers announced an increase in contract PP prices for June shipments to the domestic market, in some cases, the price rise was Rb3,000/tonne. Both the rouble devaluation and higher feedstocks prices also boosted prices.

Homopolymer of propylene (homopolymer PP) accounted for the least price increase. This segment is balanced with a slight surplus of material, despite the shutdowns for maintnenance of two producers – Stavrolen and SIBUR Tobolsk – in April-May.

The extrusion block copolymer of propylene (PP-block) market remained the most deficient one. Producers’ shipments often did not meet all the current demand, which let to record high prices. Prices have recently exceeded Rb110,000/tonne CPT Moscow, including VAT, in this segment.

($1 = Rb62.38)

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