During August, there was a lack of supply of certain types of high-density polyethylene (LDPE) on the Russian market, which led to a price increase. In September, the lack of proposals of the LDP will continue, according to the Price Review of the ICIS-MRC.

In the first half of the year, there was a serious oversupply in the Russian market, which put pressure on prices. In July, the situation on the market changed due to planned stops for the prevention of three producers at once, from the surplus market in some segments became scarce. Against the backdrop of limited supply, LDPE began to appreciate in July, price growth continued in August.

In the first days of July, Gazprom Neftekhim Salavat and Angarsk Polar Division, whose capacity is 45,000 tons per year and 80,000 tons per year, respectively, stopped their scheduled LPG repairs. In the middle of the month, Tomskneftekhim stopped its prophylaxis for prophylaxis, its capacity reaches 240,000 tons per year. Because of the lack of ethylene, it reduced the capacity utilization by LDPE Kazanorgsintez.

At the same time, the simple three producers immediately affected the balance of only the segment of cheap LDPE (108th). By early August, the main offer of the 108th grade of polyethylene (PE) on the market was from Ufaorgsintez, and prices started on average from the level of 86 thousand rubles. per ton, including VAT, FCA Ufa.

In mid-August, there were proposals on the market for LNG supplies from the Angarsk PP, the average price started at 82,000 rubles. per ton, including VAT, FCA. But because of technical problems the renewal of the operating time of PE in Angarsk after the prevention began only at the beginning of this week. And many sellers reported that they had already sold their August quotas.

In the first days of September for a month’s prevention will stop its capacity Ufaorgsintez. Also, there will be restrictions on the production of LDPE from Kazanorgsintez, and from September 26 the Kazan producer will stop part of its capacity for 24 days of prevention.

Thus, in September, the limited supply of the 108th LDPE in the Russian market will remain, which may put pressure on prices.