After a protracted surplus and subsidence of polypropylene (PP) prices in early March, the Russian market has seen an increase in demand and value. At the same time, in the near future, the largest software producer in Russia will come to a long-term repair, according to the ICIS-MRC Price Review.

The long period of surplus and falling prices of PP in the Russian market began in early January and lasted until the end of February. In the middle of last month, the demand for polypropylene began to grow, and some sellers in the last days of February began to raise prices. In early March, the demand for PP significantly increased under the pressure of the seasonal factor, while a number of small sellers had limited stocks. Next week, a stop is expected for a 45-day prevention of SIBUR Tobolsk.

In January-February, the volumes of imports of propylene homopolymer (PP-homo) raffia varieties from Turkmenistan increased significantly, with a total supply of about 7,000 tons. But in March, a serious drop in imports is expected. The weakening of the ruble against the dollar and the high export prices in Turkmenistan do not yet allow talking about new supplies of polypropylene.

Demand for polypropylene increased in March, processors begin to gradually increase capacity utilization. In addition, traditionally from mid-March it is expected to introduce restrictions on trucking in certain regions, which will last until May. And some processors in this regard were quick to make additional supplies of PP.

Talking about the deficit is not necessary. Large sellers still have sufficient supplies of polypropylene, but some small sellers reported that they had already sold all their March volumes of PP-homo.

By the beginning of March, the prices of PP-homography on the spot market rose to the level of 81 500-83 000 rubles. per ton, including VAT, CPT Moscow, although in mid-February in some cases there were 1,000 rubles. per ton cheaper. Injection PP-homo is sold on average at 82,000 – 85,000 rubles. per ton, including VAT, CPT Moscow.