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The ICIS-MRC price report shows that due to the shortage of raw materials, the price of PP in Russia has hit a record high.
In previous years, due to weak demand and oversupply, PP prices in the Russian market tended to become cheaper in January and February. However, this year's situation has changed dramatically because high prices in foreign markets have exerted upward pressure.
The price of propylene homopolymer (PP homopolymer) began to rise in January, and the price increase intensified in February. Since the beginning of the year, prices have increased by more than 17%.
In late February, due to the extreme cold weather, many US manufacturers halted production unplanned, and the shortage of PP in the global market intensified.
The shortage of PP in Europe caused prices to rise by 15% in February.
Since the beginning of the year, the rapid rise of PP prices in many parts of the world has also prompted the largest producers to continuously increase prices in the Russian market.
Export prices of Russian producers to some destinations have long been higher than domestic prices.
Cheap PP imported from Turkmenistan has decreased. In the past export trade, the price increased to US$1515/ton FCA/FOB, while the export price in early December averaged US$1050/ton FCA/FOB.
In February, the supply of PP in the Russian market was tight, and some processors were unable to fully meet their polymer demand, even at record high prices. The polymer supply situation is unlikely to improve in March.
Some sellers’ spot quotations for PP homopolymers exceeded 130,000 rubles/ton CPT Moscow (tax included) in late February, while at the beginning of January, the price of this grade did not exceed 104,500 rubles/ton CPT Moscow (tax included) .
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