Contrary to the expectations of many market participants, in November, the growth of polypropylene (PP) prices on the Russian market continued, in particular, propylene homopolymer (PP-homo). Problems at two production sites for the production of PP significantly limited supply in the market, and, as a result, caused further price increases, according to the ICIS-MRC Price Report.

Restrictions on the supply of PP-homo to the domestic market by individual manufacturers began in August, and were due to a series of preventive measures of several manufacturers at once in September-October. Many consumers expected that with the end of production repairs, the supply of polypropylene in the market will grow, and as a result, amid falling demand, will lead to lower prices. But the downtime dragged on, and the lack of supply only intensified.

SIBUR Tobolsk and Ufaorgsintez, due to certain reasons, were rather difficult and late to come out of preventive repairs. And even after the launch, these enterprises are forced to work with a limited load due to raw materials problems. It is highly likely that download restrictions will continue until the end of November.

In connection with the upcoming preventive measures in September-October, Russian manufacturers went for an almost two-fold reduction in export volumes in order to balance the domestic market. In November, a further drop in exports is expected due to the deteriorating market situation.

Partly the shortage of Russian PP-homo compensated for imports from Central Asian countries, but these manufacturers also had planned and unplanned production stops in October-November.

The situation is most critical at the current moment in the segment of injection molding PP-homo. Many companies note a more serious shortage of supply than in the PP-homophys segment. This week, raffia prices jumped to 105 000-107 000 rubles. per ton, including VAT, FCA. Single deals on the delivery of injection molding PP-Homo start from the mark of 107,000 rubles. per ton, including VAT, FCA.