Low seasonal demand and oversupply have become the main reason for the decline in prices of high-density polyethylene (LDPE) in the Russian market. For February deliveries, key suppliers announced price reductions of 2,000–4,000 rubles. per tonne, according to the ICIS-MRC Price Report.

January was short due to the long New Year holidays, moreover, the demand for LDPE in the first months of the year is always very low due to a number of factors. Despite these factors, the supply of polyethylene (PE) on the part of some manufacturers was excessive. And weak demand from key export markets did not allow to get rid of excess supply of LDPE in the Russian market. As a result, many sellers for February deliveries announced price cuts.

During January, PE used the least demand for the production of thick films (108th LDPE), by February the supply of this type of LDPE reached 85,500-87,000 rubles. per ton, including VAT, CPT Moscow. At the same time, as the company’s customers reported, the Angarsk RFP intends to reduce the production volumes of the 108th LDPE by one third this year compared to last year’s level.

Demand for the 158th PE during the past month was slightly better than for the 108th. In addition, temporary interruptions in the supply of polyethylene by Kazanorgsintez were noted. For February deliveries of the 158th LDPE, the proposals are voiced in a rather large range: 91 500-96 400 rubles. per ton, including VAT, CPT Moscow.