MOSCOW (MRC)--Russia low density polyethylene (LDPE) grad prices rose in August on the back of some shortage of product, expected to continue through to next month, according to ICIS-MRC Price report.
There was a major surplus of LDPE, which put pressure on prices, in the Russian market in the first half of the year, but the market situation changed in July due to scheduled shutdowns for maintenance at three plants simultaneously, leading prices to tick up in July on the back of tight supply, the upward price trend continued in August.
In early July, Gazprom neftekhim Salavat and Angarsk Polymers Plant shut down their LDPE production capacities for scheduled turnarounds. Tomskneftekhim took production offstream for maintenance in the middle of the month, while Kazanorgsintez reduced its LDPE capacity utilisation because of a shortage of ethylene.
In mid-August, Angarsk Polymers Plant’s LDPE offer prices appeared in the market. On average, prices started from Rb82,000/tonne ($1,214/tonne) FCA (free carrier), including VAT. Because of technical issues, the resumption of PE production in Angarsk after maintenance had begun only by the beginning of the current week, and many sellers said they had already sold out all their August quotas.
Ufaorgsintez will shut its production capacities for a one-month turnaround in early September. Kazanorgsintez will also still have restrictions on LDPE production, and the Kazan producer will take off-stream some of its production capacities for a 24-day maintenance on 26 September.
Thus, supply of 108 grade LDPE will remain tight in the Russian market in September, which may put pressure on prices.
($1 = Rb67.57)
MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.