MOSCOW (MRC) -- July hasn't brought the expected polypropylene price decrease in the Russian market. Outlined price fall at the beginning of the month has changed to growth despite the expectations of market players - according to MRC Price reports
Gradual suspension of capacities in Kapotnia (Moscow oblast) and Ufa in May became one of the main reasons of further polypropylene price increase in the Russian market. To mid-June raffia prices in the market went up to the level RUB 58.000 - 62.000/mt, including VAT, FCA. To month-end raffia prices in the Russian market started slowly declining and reached the level RUB 58.000 - 59.500/mt due to the resume of production in Neftekhimia and Ufaorgsyntez capacities. As a result, many Russian converters have essentially decreased polypropylene purchases while expecting another price fall.
However, in spite of further decrease of prices, the Russian market saw another price elevation. Technical problems at Stavrolen have led to suspension of polypropylene capacities. Tomskneftekhim facilities were shut down for planned repairs last week. Other Russian producers also plan to reduce raffia production in July.
Lack of raffia in July is partly covered with supply from Ukraine. The first shippings from Lipol started last week already. Also some market players expect the resume of PP production at Stavrolen. Yet small raffia volumes are offered in the range of RUB 60.000 - 61.000/mt, including VAT, FCA.
More information about Russian polypropylene market is available in MRC Price reports.