MOSCOW (MRC) - To late June prices for low density polyethylene went down by RUB 1.500 - 2.000/mt comparing with the beginning of the month and froze in the range of RUB 57.000 - 59.000/mt - according to MRC Price reports.
As early as in late May a slight deficit in LDPE supply was seen in the Russian market; the prices for 158 PE were in the range of RUB 59.000 - 60.500/mt, including VAT, FCA. In early June Belarusian producers started to increase LDPE exports into the Russian market. Lower price let Belarusian polyethylene compete with Russian producers in Central Federal District, to the end of the month Novopolotsk LDPE appeared in southern Russia. The resume of production at Kazanorgsyntez and Ufaorgsyntez also pushed the prices down.
The increase of LDPE supplies from Belarus and the resume pf PE production at Kazanorgsyntez and Ufaorgsyntez capacities led to stabilization of the situation in the market and the prices rolling back. Current price level for 158 LDPE is in the range of RUB 57.000 - 59.000/mt, including VAT, FCA. Some market players have taken a wait-and-see position hoping for further price fall. At the same time, single market experts tell that current price decrease is a temporary event because of upcoming suspensions for scheduled maintenance of two huge plants in Tomsk and Kazan. The first suspension is expected at Tomskneftechim capacities in mid-June already.
For more information about Russian LDPE market please refer to MRC Price reports.