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Time: 2017-02-17

July and August were difficult months for Russian PP buyers. A series of equipment shutdowns led to maintenance at major manufacturers

PP

The price

An unprecedented high and a severe shortage of supplies. In September, the equipment maintenance season ended and PP supply began to increase, but the delayed demand still created a sense of tight supply in the market. In October, market conditions improved significantly. Stavrolen resumed its PP production, and in the second half of October, an oversupply of PP began to weigh heavily on prices.

In the last week of October, the Russian market

procurement

Activity is low, many market participants are not eager to buy November PP cargo. There is a lot of competition among manufacturers

The company

We hope the supplier can reduce the quotation. Working capital and refinancing problems for processors are also affecting demand.

November is the weakest month for demand, a factor that could also push prices lower. But the ruble has fallen sharply against the dollar in the past two weeks, making Russian PP exports highly competitive in international markets. Some manufacturers said they wanted to balance PP supply in the domestic market by increasing export sales. At the same time, it is not so easy to export materials, because with the fall in oil prices, PP prices in foreign markets are also falling.

This week, the spot market price of brushed grade acrylic monomer (PP monomer) in southern Russia was 71,500-73,000 rubles per ton, including VAT. The average trading price in Povolozhsky is 72,000 rubles per ton, and the FCA ufa, including VAT. In central Russia, wire-drawing prices remain at 73,000-74,000 rubles per ton, CPT Moscow, VAT included.

The market demand for injection grade PP homopolymers also declined significantly. The central Russia offer has been reduced to 74,000-75,500 rubles per ton, including VAT.

PP copolymer market is no exception. Many in the market say prices fell at the end of October. This week's quotation is maintained at 80,000 to 82,000 rubles per ton, FCA, including VAT.

According to the icis-mrc price report, the supply of PP in the Russian market rose sharply in October, while the price fell. According to a number of market participants forecast that the trend will continue to November.