MOSCOW (MRC)--After several months of decreases, the price of low-density polyethylene (LDPE) in the Russian market, has begun to stabilise, according to the ICIS-MRC Price Report.
Some players even reported price increases this week.
The decrease in LDPE prices in the Russian market began in October last year due to excess supply and a seasonal decrease in demand.
By mid-February was it possible for producers to achieve relative stability by reducing supply, buoyed by stable demand. Prices rose slightly for some grades of LDPE.
Some producers said that some LDPE grades reached a point in January close to the cost of production.
Producers did not resort to shutdowns but they reduced loading. In particular, Gazprom neftekhim Salavat and Kazanorgsintez reduced their output.
LDPE imports from Belarus were also reduced due to the shutdowns of part of the capacities from January. At the same time, some companies still reported temporary restrictions in LDPE supplies.
According to the company's customers, Ufaorgsintez has temporary restrictions on shipments of some LDPE grades
Gazprom Neftekhim Salavat also reduced capacity utilisation in favour of a more profitable sale of ethylene.
Overall, spot prices of 108 grade LDPE have been stabilised in the range of Russian roubles (Rb) 61,000-65,500/tonne ($959-1,030/ tonne) CPT (carriage paid to) Moscow, including VAT, by mid-February.
A slight increase in the prices of Ufa polyethylene was recorded, prices start from the level of Rb68,500/tonne CPT Moscow, including VAT, while a week earlier they were Rb1,000-1,500/tonne cheaper.
($1 = Rb63.59)
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.