MOSCOW (MRC) -- This week three Russian producers announced the growth of LDPE prices. The quotations grew by ruble (Rb) 1,000-1,770/tonne, depending on a producer. The price hike is mostly stipulated by a seasonal factor, according to ICIS-MRC Price report. Tomskneftekhim was the first to announce the increase of LDPE contract prices for the domestic market. The prices for 158 and 153 PE grew by Rb1,000/tonne. The price for LDPE by Gazprom neftekhim Salavat grew nearly by Rb1,000/tonne. Yesterday Kazanorgsyntez announced Rb1,770/tonne growth of contract prices for 158 and 153 LDPE. The price hike was mainly caused by a seasonal factor as well as the growth of feedstock price.
In warm March a demand for LDPE grew in the Russian market. By mid-April, Kazanorgsyntez, the biggest Russian producer of LDPE, plans to suspend its capacities for one-month maintenance. In early May a scheduled suspension is expected at Ufaorgsyntez. Now because of ethylene deficit, LDPE capacities in Ufa have been loaded by half, also the operation at one of reactors was suspended. The market participants inform about limited supplies of 158 LDPE to the domestic market from Kazanorgsyntez.
A limited offer of LDPE from some Russian producers, coming scheduled maintenances and a seasonal growth of demand will affect spot prices. The market has just started reacting to the growth of contract prices and limited supplies of LDPE, as a result, the price range remains quite wide. The Russian 158 LDPE is offered on average for Rb56,000-59,000/tonne, VAT included, FCA. PE for production of shrinkable films is offered for Rb60,000-61,000/tonne VAT included, FCA.