Record high prices of LDPE in August – September was due to a scheduled stop on the prevention of the two largest producers – Kazanorgsintez and Tomskneftekhim. In October, the deficit in the market gradually began to disappear, and polyethylene became cheaper. In November, prices continued to decline, but it has been not as dynamic as the previous month. In the last month, the Russian producers intend to keep the price level of the November JHA, including due to the growth of export sales.

Peak deficit fell in September and LDPE prices exceeded the level of 110 thousand. Rub. per ton, including VAT, CPT Moscow, for 158 PE, and in some cases reached 115 thousand. rub. per ton, including VAT, CPT Moscow. And by the end of November, high-density polyethylene fell to 98,000-103,500 rubles. per ton, including VAT, CPT Moscow, at the same time within a month on the market there is a serious oversupply of the polymer.

In the last week of November Kazanorgsintez severely limited the supply of LDPE in the domestic market due to the growth of export sales. In the first week of December, this trend will continue: the emphasis in the implementation of the company makes to export destinations. According to the company’s customers, its plans to substantially increase exports this month said Ufaorgsintez. Also, temporarily restricted supply of LDPE from Belarus.

While these factors do not have a serious impact on the market. The demand for high-density polyethylene in the first week of December low, processors are in no hurry to replenish their inventories. At the same time it is possible that, given the upcoming long holidays and possible problems with the road in the last days of December, next week will increase the demand for LDPE. And the situation with the supply and demand be balanced.