MOSCOW (MRC) -- March brought the improvement of the situation in the Russian plasticizers market after the February deficit caused by the conflict between the supplier of material and producers of dioctyl phthalate (DOP). At the same time, DOP prices remained quite high, according to MRC Price Report.
In February, the conflict between the supplier of 2-ethylhexanol (2-EG, which is one of the two basic feedstocks for the DOP production) and plasticizer producers led to a significant reduction in the plasticizer production and, consequently, resulted in a shortage in the Russian market. Th involved parties had managed to come to an agreement by March. DOP production increased significantly, the market has been gradually saturated with the material, however, this factor did not affect prices.
Back in early March, the price dispersion in the Russian DOP plasticizer market was wide enough, and prices were in the range of Rb102,000-125,000/tonne FCA, including VAT. This significant price spread was caused by insufficient supply of plasticizer in the market. But the market situation began to improve gradually by the middle of the month, and the price range began to contract gradually.
Some market participants said needs of large and medium-sized DOP consumers have been met so far, but by the end of the month the turn will come to small companies. At the same time, despite the saturation of the market demand, prices of Russian plasticizer will remain at Rb102,000-110,000/tonne FCA, including VAT until the end of the month.
MRC