LDPE prices continue to go down in the Russian market
Weak seasonal demand and oversupply continued to affect significantly low density polyethylene (LDPE) prices in the Russian market. Price reduction for March deliveries for some items reached Rb3,000/tonne, reported in the ICIS-MRC Price Report.
The same situation repeated in the Russian LDPE market again from year to year, the excess supply amid low demand made sellers cut prices. The current year was no exception, since the beginning of the year LDPE prices constantly become cheaper.
Some sellers announced a further price reduction for March deliveries last week. The most decrease will account for 108 LDPE, the price reduction for some suppliers was Rb3,000/tonne.
In order to balance the domestic market, some producers have increased export volumes in the past few months.
Angarsk Polymer Plant planned to reduce the capacity utilisation in 2019. However, all these factors did not help to balance the domestic market.
Some sellers still hope that in the second half of March, the situation with demand will improve and price rise will stop.
Restrictions of truck movement will be introduced in April, which can lead to a increase in the cost of delivery.
Kazanorgsintez plans to shut down some of its LDPE production capacities for almost a one-month maintenance from 12 April. In the meantime, sellers had to cut their prices.
March price offers for 108 LDPE in the late last week reached Rb81,800-83,000/tonne CPT Moscow, including VAT.
The price range was quite wide this week with prices heard at Rb88,800-94,500/tonne CPT Moscow, including VAT.