MOSCOW (
MRC) - Despite the low demand in the spot market and the end of turnarounds, Russian producers continue to raise prices for low density polyethylene (LDPE) for supplies to the domestic market. Last week, prices rose again by roubles (Rb) 1,000-7,000/tonne, according to
ICIS-MRC Price Report.
Kazanorgsintez resumed LDPE production after a scheduled shutdown in mid-October, thereby completing the period of scheduled maintenance works of Russian producers this year. The supply of polyethylene increased in October in the spot market, but demand remained at a low level. At the same time, domestic producers increased LDPE prices further for supplies to the domestic market under the pressure of rising cost of raw materials and the situation on foreign markets.
Last week, polyethylene prices rose by Rb1,000-7,000/tonne, breaking another record. Demand for LDPE has remained low in the spot market since September, and is largely due to the another jump in prices.
Quite a lot of companies carry out their purchases of polymer within the framework of annual contracts, and almost completely refused from buying in the spot market due to a significant difference in price. The volume of LDPE imports to Russia decreased in October, in particular, the Belarusian producer Polymir almost halved its supplies to the Russian market.
Nevertheless, this factor did not affect the market balance, low demand offset everything. Nevertheless, despite low demand, spot prices from Russian producers continue to grow. Last week one of the producers raised prices by Rb7,000/tonne. That is why price offers for 158 PE reached Rb164,000/tonne CPT Moscow, including VAT.
Spot prices for the 108 LDPE have grown less significantly and so far do not exceed the level of Rb150,000/tonne CPT Moscow, including VAT.
MRC