Russia LDPE prices up on strong demand, tight supply

MOSCOW (MRC)–Russian low density polyethylene (LDPE) prices increased throughout March by roubles (Rb) 14,000/tonne ($178/tonne) on strong demand and tight supply, according to the ICIS-MRC Price report.

Demand began to recover actively from late February after an oversupplied December and January.

In early March it increased further due to early spring in a number of regions, whereas most supply was tight with some sellers having sold out all their March quotas by the middle of the month.

As a result, LDPE prices rose on a weekly basis, and some sellers announced a further price increase for April shipments this week.

108 grade LDPE was the most scarce throughout March, with key suppliers Angarsk Polymers Plant, Ufaorgsintez, and Kazanorgsintez having low stocks.

This increased demand led to a price rise from Rb62,500/tonne CPT (carriage paid to) Moscow, including VAT, in the last week of February to Rb76,000/tonne by the end of March.

The situation was also similar with 158 grade LDPE in the second half of March, with many sellers having sold out by the middle of the month amid strong demand.

In late March, some producers announced an increase of Rb3,000-5,000/tonne for April LDPE prices.

($1 = Rb78.77)

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