Rising prices of polyethylene high pressure (LDPE) in foreign markets and limited supply in the domestic market led to a rise in prices in Ukraine. In the near future the situation on the LDPE market may deteriorate, according to a price review ICIS-MRC.
In March, many Ukrainian companies are faced with a limited supply of high-pressure polyethylene from the major suppliers – manufacturers of Russia and Belarus. The lack of a seasonal surge in demand and large carryover stocks from February LDPE purchases allowed to avoid shortage in the market this month, but the prices at the end of March, all the same rose. In April, it is expected to even more cuts in export quotas by the major suppliers, which will trigger a further rise in prices.
In early March, the transaction for the supply of Russian and Belarusian LDPE in the Ukrainian market were concluded in the range of 38 500-40 000 UAH per ton, including VAT, CPT Kiev. By the end of the month, prices of some suppliers have grown to the level of 44 000 UAH per ton, including VAT, CPT Kiev. It led to higher prices as a lack of supply and significant price growth in Belarus.
Some market participants have expressed concerns about the April because Russian producers do not plan to deliver JHA in Ukraine due to the upcoming stops on prevention. Belarusian producer is also more focused on the Russian market and is unlikely to fully compensate for the lack of supplies from Russia.
Alternatively, you can consider the European LDPE. However, it is significantly more expensive and European manufacturers are unlikely to significantly increase supplies to Ukraine. At the same time in April, it is expected to rise in prices of LDPE in Europe EUR50-80 per tonne.