MOSCOW (MRC) -- The last week of June was marked by a serious decrease in demand in the Russian polypropylene market. Many market players expect PP prices to go down in the domestic market being pressed by continuously falling prices in Asia - according to MRC Price reports
Russian converters had seriously cut down polypropylene purchases by the end of June. Launch of PP plants after the scheduled maintenance in Ufa and Kapotnya with the total capacity of 200.000 tpa at the end of June should lead to market saturation and, as a result, price decrease. Continuously falling prices in Asia is also a serious argument for the converters.
Russian producers have not chnaged July PP prices seriously. Raffia prices vary within the range of RUB 58.500 - 60.000/mt, including VAT, FCA. In the second half of July, PP production in Tomsk is going to be shut down for planned repairs. Operations are expectedly to be resumed in mid-August.
PP prices in Asia had been falling since the beginning of May and lost more than USD 150/mt by the end of June. The European market, contrariwise, is demonstrating a stable growth of prices being pushed up by scarce supply. Despite the EUR 20/mt decrease of contract prices for propylene in Europe, some European producers have raised July PP prices by EUR 15 - 30/mt. Some companies have nevertheless not chnaged their prices. Generally, PP-homo prices for Russian companies were fixed within the range of EUR 1.220 - 1.280/mt, FCA.
For more information about the Russian PP market, please, refer to MRC Price reports.