MOSCOW (MRC)--Russia low-density polyethylene (LDPE) prices continued their upward trend in early September following rising prices and tightening supply in August, according to ICIS-MRC Price report.
Market balance has been changing since July due to shutdowns at a number of plants. Despite weak demand, prices of some LDPE grades increased in August, with turnarounds for two large producers - Ufaorgsintez and Kazanorgsintez – in September expected to continue to pressure prices.
Ufaorgsintez took off-stream some of its LDPE production capacities for a 30-day maintenance on 1 September, the second part of the capacities will be shut down for a one-month turnaround on 19 September.
Kazanorgsintez will take off-stream some of its production capacities for long maintenance in the third week of September, and the plant has already reduced its capacity utilisation.
Demand for LDPE was weak in August, however, this factor did not curb the increase in prices of 108 grade LDPE.
The price growth of this polyethylene (PE) grade continued in early September, in some cases, deals reached Rb93,000/tonne FCA, including VAT, and higher. Prices of other LDPE grades also began to go up.
Buying activity was low in the LDPE market in early autumn, converters were slow to replenish inventories, despite lower supply of polymer in the market.
($1 = Rb70.36)
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.