The first days of August led to another increase in prices for high-density polyethylene (LDPE) in Russia, while the dynamics of the rise in prices for polyethylene increased significantly, including due to preventive downtime of individual manufacturers, according to the ICIS-MRC Price Review.

In late June – early July, two Russian producers in Angarsk and Salavat stopped for long-term scheduled repairs, which immediately affected the market balance and led to an increase in prices for high-density polyethylene. By the beginning of August, only the Angarsk Polymer Plant resumed production after the shutdown, while three more manufacturers are expected to stop for repairs in September. Good demand and limited supply of polyethylene from most producers led to another surge in prices. At the same time, for some items the rise in prices turned out to be more significant in comparison with July.

Since June 22, for a 30-day repair, the Angarsk Polymer Plant stopped its capacities, however, the enterprise managed to resume production of polyethylene after the repair only by August 3. The situation is similar with Gazprom neftekhim Salavat, the shutdown started on July 1 and was planned for 30 days. But as noted by the company’s clients, LDPE production is likely to begin in the second decade of August.

In July, the demand for LDPE was at a good level, and some sellers sold all their monthly quotas by the middle of the month. A similar situation with demand is expected in August. And in September, another series of planned prophylaxis is expected.

In the first days of the first month of autumn, shutdowns are expected for maintenance at the facilities of Tomskneftekhim and Ufaorgsintez, although the downtime will not be so long. From September 17, Kazanorgsintez will shut down its capacities in several stages, the idle capacity will last until October 13.

For the first days of August, the supply of LDPE on the spot is limited, some sellers are in no hurry to sell their August volumes, expecting further price growth. Prices for shipments of 108 polyethylene start at 83,000 rubles. per ton, including VAT, FCA. Offers for shipments of the 158th LDPE start at an average of 88,000 rubles. per ton, including VAT, FCA.