MOSCOW (MRC)--Contrary to many consumers’ expectations, July low density polyethylene (LDPE) prices went up in the Russian market on tight supply according to ICIS-MRC Price report.
Supply was restricted in June-July by lower utilisation of one of the producers, and coupled with strong demand caused prices for some grades to exceed Rb2,000/tonne from June.
Angarsk Polymers Plant shut its LDPE production capacities for a scheduled turnaround on 21 June and is scheduled to come back online in early August.
Since February, Ufaorgsintez has been operating with the reduced capacity utilisation at its LDPE production due to a fire in the gas distribution shop but has not announced when it will return to full capacity.
The Belarusian producer - Polymir - has also reduced its footprint in the Russian market since May.
Buyers reported unstable LDPE shipments from Russian producers from the second half of June, and this factor intensified even more in July.
Tight supply began to drive prices up, although converters were trying to resist any price hikes.
Spot prices of 108 grade LDPE rose to Rb140,000/tonne CPT Moscow including VAT for mid-July, up from Rb132,500/tonne in the last week of June.
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.