MOSCOW (MRC)--The first days of August led to another price rise of low density polyethylene (LDPE) in Russia amid scheduled maintenance works of some producers, according to the ICIS-MRC Price Report.
Two Russian producers shut their production capacities for long-term scheduled maintenances in late June - early July, which immediately affected the market balance and led to an increase in LDPE prices.
Only the Angarsk Polymer Plant had resumed production after the shutdown by the beginning of August, while in September three more producers are expected to stop for turnaround. Good demand and limited supply of polyethylene from most producers led to another surge in prices.
The shutdown at the Gazprom neftekhim Salavat facility started on 1 July and was planned to last for 30 days. But the company’s clients said LDPE production was likely to begin before the second half of August.
Demand for LDPE was at a good level in July, and some sellers sold all their monthly quotas by the middle of the month. A similar situation with demand is expected in August.
Another series of scheduled maintenances are expected in September. Shutdowns are expected at the facilities of Tomskneftekhim and Ufaorgsintez in the first days of the first month of autumn, although the turnarounds will not be so long.
Kazanorgsintez will shut down its capacities for scheduled maintenance works from 17 September to 13 October.
Supply of LDPE was limited in the spot market in the first days of August, some sellers were in no hurry to sell their August volumes, expecting further price growth.
Price offers for 108 PE started from Russian roubles (Rb) 83,000/tonne ($1,130/tonne) FCA (free carrier), including VAT. Price offers for 158 PE started from Rb88,000/tonne FCA, including VAT.
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.