![\"Supply](\"http:\/\/www.polymers.com.ua\/image\/data\/NEWS1\/1\/%D0%B2%D1%82%D0%BE%D1%80%D0%B8%D1%87%D0%BA%D0%B0.JPG\" "\\"Supply")
<\/a><\/h1>\nBeginning of the year was not eventful, processors buy raw materials for current contracts, not wanting to create a surplus stocks in a falling market potential. But when oil prices stopped falling and buyers returned to the market polyolefins restock, material supply have deteriorated significantly, and prices began to rise.
\nManufacturers have switched to exports, as demand in Europe fell, except the dollar against the euro has boosted exports from Europe, so that when demand rose once there was a shortage of supply.
\nAs European prices were among the lowest in the world, importing reluctant imported goods by switching to more profitable areas. In addition, the increase in import duties on products from countries of the Persian Gulf from 3% to 6.5%, introduced in January 2014, also contributed to the growth of external supplies.
\nApart from all other things, in the factories that were loaded below the optimal level, damage began to occur, resulting in an unprecedented number of force majeure. Certain production lines were closed, and the rest under threat of closure. There have been isolated cases where the raw material for processors supplied aircraft, to prevent the closing lines. The discontent of buyers has led to numerous requests to waive the increased import duty on raw materials.
\nManufacturers have noted that the main reason for decline in imports was the change in the euro against the dollar, rather than import duties. In addition, many buyers were not sure of the validity of many of force majeure on the supply of PE and PP in factories in Europe.
\nAccording to them, the cause of many force majeure was the desire of manufacturers to raise prices and increase demand for future proposals.
\nMany of the contracts for the supply of ethylene and propylene in 2015 were very favorable for buyers, but in the end, the sellers were able to impose more favorable terms for 2016, leaving little room for customers choice.
\nAccording to market sources, the contract prices of polyolefins based on propylene raw materials in 2015 increased by more than EUR100-150 per ton. Raised prices attract importers, as the increase in margins will lead to a return of sellers back to Europe.
\nManufacturers generally very confident about the prospects for 2016, in spite of the supply material from some of the new plants. Borouge 3 start, with a capacity of 1 million tons of PP and 1 million tons of polyethylene per year has not yet had much impact on supply in Europe. Supply LDPE and LDL from the new plant Sadara will be felt not before the second half of 2016.
\nMarket sources expect that the growth of the market will absorb the increase in the supply of material and at least one manufacturer of PE and PP one producer said its processors, that deliveries are irregular, at least in the first half of 2016.
\nIt should be noted that by the middle of December, oil prices started to fall, so buyers polyolefins expected to reduce their prices in the new year. Manufacturers were thus frustrated.
\n“Yes, in the volume of imports will increase,” – said one of the producers – “but it will not affect the market – it is needed.”<\/p>\n<\/div>\n
<\/p>","protected":false},"excerpt":{"rendered":"
Beginning of the year was not eventful, processors buy raw materials for current contracts, not wanting to create a surplus stocks in a falling market potential. But when oil prices stopped falling and buyers returned to the market polyolefins restock, material supply have deteriorated significantly, and prices began to rise. Manufacturers have switched to exports, […]<\/p>\n