Since the second half of April, the Russian market recorded a dynamic decline in the prices of high-pressure polyethylene (LDPE). But already in August the situation on the market has radically changed, and price growth has resumed, according to the Price Review of ICIS-MRC.

In fact, throughout July, the facilities for the Angarsk polymer plant and Gazprom nefthim Salavat stood for preventive repairs. Nevertheless, the long downtime of the two manufacturers did not change the situation on the market. In August, the plant continued production in Salavat, stopped the production of Tomskneftekhim, also reduced the capacity utilization of Kazanorgsintez and Ufaorgsintez. Against this backdrop, the LDPE proposal was seriously reduced by the middle of the month, and polyethylene began to appreciate.

In early August, the supply of polyethylene on the market was more than sufficient. At the same time, buying activity has increased significantly. The prices of the 108th started from the mark of 74 000 rubles. Per ton, including VAT, FCA, and above, the 158th was sold for 79,000 rubles. Per ton, including VAT, FCA, and more.

By the middle of the month, many trading companies selling LDPE production Ufaorgsintez, said that they sold all their August volumes of polyethylene. Since the middle of the month, it began to limit the supply of LDPE to the domestic market of Kazanorgsintez. Also, there was still no supply of polyethylene from Gazprom neftekhim Salavat (the company planned to resume production by August 5, but due to problems with ethylene, the launch took place only by August 29).

The dynamic decline in prices in the domestic market forced individual Russian producers to increase the amount of LDP exports in recent months. In July, more than 21,400 tons of polyethylene were shipped to foreign markets, and about 16,000 tons were shipped for export in the twenty days of August. At the same time, in the beginning of August, for some items of the LDP, export prices equaled domestic prices.

Good demand and limited supply of LDPE on the market began to put pressure on prices in the Russian market in the second half of August. In the last week of the month, the supply of polyethylene on the market was insignificant for trading companies, the prices reached the level of 84,000 rubles per ton, including VAT, FCA, for 108th LDPE and 86,500 rubles. Per ton, including VAT, FCA, for the 158th. The market froze in anticipation of the September price level agreed on by local producers.