Throughout November, high-pressure polyethylene (LDPE) in the Russian market became cheaper under the pressure of a seasonal decline in demand and oversupply. During the month, polyethylene fell by 6,000 – 9,000 rubles from some sellers. per ton, according to the ICIS-MRC Price Review.
In August-September, planned preventive downtime of individual production facilities helped to keep the Russian high-pressure polyethylene market relatively balanced in terms of supply and demand. And as a result, there were no significant changes in prices during this period. But with the advent of November and the growth of production in the face of declining demand, the market “fell”. Sellers reviewed their prices on a weekly basis, and by early December, prices for some items had fallen to 70,000 rubles. per ton, including VAT, CPT Moscow, and below.
The supply surplus of LDPE began to be felt from the first days of November, while the greatest excess of supply was noted in the segment of the so-called 108th PE for the production of thick films. The main reasons for the surplus were the increase in production volumes, and as a result, the volumes of supplies to the domestic market in September – October from the Angarsk Polymer Plant. As well as seasonal reduction in demand.
Some Russian manufacturers tried to balance the domestic market due to the growth of export volumes. In particular, in October, about 10.2 thousand tons of LDPE were shipped to foreign markets, and already in the 24 days of November this figure rose to 14.4 thousand tons. But this factor did not lead to a quick effect for the market.
Many processors complained during November about the low demand for finished products from LDPE. And some sellers, in order to stimulate their sales, reviewed their prices on a weekly basis. This held back demand even more as processors limited their supplies in the hope of lower prices.
In early November, the prices of the 108th LDPE were in the range of 75,500-78,500 rubles. per ton, including VAT, CPT Moscow, and by the beginning of December this polyethylene had fallen to 69,500-71,500 rubles. per ton, including VAT, CPT Moscow. A similar situation with the 158th, prices at the beginning of November and December are fixed in the range 79 500-83 500 rubles. per ton, including VAT, CPT Moscow, and 70,500-75,000 rubles. per ton, including VAT, CPT Moscow, respectively.