MOSCOW (MRC)--Prices for low density polyethylene (LDPE) steadily decreased in May in the Russian market as price decreases accelerated in the last two weeks of the month resulting in average monthly price cuts of Rb4,000/tonne ($63/tonne), according to the ICIS-MRC Price Report.
The depreciation of LDPE began in the second half of April, low demand for polyethylene and excess supply became the main reason for the price decrease.
The downtrend of prices continued in May, with the most significant price fall in the last two weeks, when prices were adjusted almost daily. Thus, by the end of the month, LDPE prices fell by Rb3,000-5,000/tonne, depending on the grade.
The constant cheapening of polyethylene negatively affected demand, converters deliberately limited and postponed their purchases in anticipation of further price decrease.
PE supply in the market has been excessive from the beginning of the year, while LDPE supply to the market declined by 4% in the first four months.
In the early May deals for 108 grade LDPE were done in the range of Rb95,000-98,000/tonne CPT Moscow, including VAT, in the late May prices decreased to Rb91,500 - 95,000/tonne, CPT Moscow, including VAT.
The same situation is in the market of 158 LDPE. In the early May deals for 158 grade LDPE were done in the range of Rb98,000-102,000/tonne CPT Moscow, including VAT, in the late May prices decreased to Rb92,500-98,500/tonne, CPT Moscow, including VAT.
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.