Russia’s LDPE supply tightens on production issues

Source: ICIS News

2019/04/15

MOSCOW (MRC)--Russia’s low density polyethylene (LDPE) supply tightened last week, with several producers reducing output on the back of production issues, according to a MRC Price report.

Moreover, restrictions on road freight transportation on Russian regional roads also led to some delivery problems and higher logistics costs.

Sellers have been trying to raise prices, but buyers are resisting the increases.

Angarsk Polymers Plant has restricted its LDPE shipments to the domestic market, while Ufaorgsintez had problems at its ethylene unit last week, leading to lower capacity utilisation and reduction in shipments of 108 grade LDPE.

However, the main problem was the fact that trucks have to be loaded by no more than 10 tonnes per truck since 1 April.

This significantly reduced the rate of PE shipments to customers.

Gazprom neftekhim Salavat also had issues at its LDPE production, which caused a temporary decrease in supply of PE in the domestic market.

Activity has been low in the LDPE market since early April, but tight supply still propped up prices.

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