Low demand in the Russian market still limits LDPE price hikes

Beginning of the year was marked with considerable growth of prices for LDPE, but even a month later the Russian market still can’t entirely accept this swing in prices, according to MRC analysts.

In the first January week the Russian producers raised the prices for LDPE by 2.000 – 2.400 RUB/t. The warehouse stocks of the trading companies made yet in December-first half of January allowed to limit the price hike in the spot market. Traditionally, in the beginning of the year demand for polyethylene is very low in the market that also had an impact on prices.

A month later the situation in the Russian market of LDPE actually didn’t change. The purchasing activity is still not high. Demand for many types of films is still low and the current level of prices for polyethylene doesn’t allow many converters to increase the volumes of purchases for future. Also a part of converters formed additional material stocks yet in December and with new purchases they plan to enter the market not earlier than in the second half of February.

By the beginning of February the range of prices for LDPE from the Russian producers in the spot market had considerably decreased. The price offer for 158 PE by the beginning of the current week is fixed within the range 62.000 – 63.500 RUB/t, including VAT, FCA. LDPE for production of shrinkable film is offered on average for 62.800 – 64.000 RUB/t, including VAT, FCA.