MOSCOW (MRC)--Polief is not expected to resume terephthalic acid (PTA) production by the end of November, as per ICIS-MRC Price Report.
This is adding upward pressure on spot prices, although supply of Russian-PET remains balanced.
Contract buyers continued to receive material on average at Rb75,000-78,000/tonne CPT Moscow, including VAT.
Spot prices from Russian producers were in the range of Rb82,000-88,000/tonne CPT Moscow, including VAT.
A force majeure was announced at the Polief plant and spot sales were suspended in favour of fulfilling contractual obligations.
This was linked to an accident on 9 October when an 8 tonne concrete tank containing untreated sewage spilled onto the territory of the plant and surrounding area.
A criminal case has been opened for violation of the rules for the treatment of environmentally hazardous substances and wastes, causing an estimated cost of roubles (Rb)44m environmental damage.
PTA production by Polief was at Blagoveshchensk launched in September following the modernisation of the plant the previous month.
The Russian market consumes 500,000 tonnes of PTA per year, so the increased capacity from 272,000 tonnes/year to 350,000 tonnes/year by Polief could reduce imports
SIBUR began the reconstruction of the production of PTA in Blagoveshchensk in December 2017.
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.