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Contrary to the expectations of many consumers, LDPE prices in the Russian market rose in July due to tight supplies
.
In June-July, supply was constrained due to a drop in the run rate of one producer, coupled with strong demand, prices for some grades rose by more than Rs 2,000/t from June onwards
.
The Angarsk Polymers plant started an overhaul of the LDPE line on June 21 and is scheduled to resume production in early August
.
Ufaorgsintez's LDPE production has seen reduced capacity utilisation since February due to a fire in the gas distribution plant, but there is no announcement on when full capacity will be restored
.
Belarusian producer Polymir has also reduced its share of the Russian market since May
.
LDPE shipments from Russian producers have been erratic since late June, a factor that was further exacerbated in July, buyers said
.
Tight supplies are starting to push prices higher, even as processors struggle to resist the trend
.
In mid-July, the spot price of grade 108 LDPE rose from 132,500 rubles/ton CPT Moscow (about 11,592 yuan/ton) in the last week of June to 140,000 rubles/ton CPT Moscow (about 12,248 yuan/ton) including tax
.
