Weak seasonal demand and oversupply continue to push prices down for Russian low density polyethylene (LDPE), by around 3-4% for certain March deliveries, according to the ICIS-MRC Price Report.
Prices have been in decline since the start of 2019, as would be expected at this time of the year.
Some sellers announced a further price reduction for March deliveries last week. The sharpest decrease was for 108 LDPE, down by Rb3,000/tonne ($40/tonne) from some suppliers.
In order to balance the domestic market, some producers have increased export volumes in the past few months.
Angarsk Polymer Plant planned to reduce its 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.
Restrictions of truck movement will be introduced in April, which can lead to an increase in the cost of delivery.
Kazanorgsintez plans to shut down some of its LDPE production capacities for almost a month of maintenance from 12 April.
March price offers for 108 LDPE in the late last week reached Rb81,800-83,000/tonne CPT (carriage paid to) Moscow, including VAT.
The price range was quite wide this week with prices heard at Rb88,800-94,500/tonne CPT Moscow, including VAT. - ICIS-