Russian LDPE Values Likely to Stabilize in Effect of Angarsk Plant Turnaround

A major Low Density Polyethylene producer of Russia, Angarsk Polymer announced a maintenance turnaround on 21^st June, which is expected to last till the end of first week of August 2021. The company is a major petrochemical enterprise located in Eastern Siberia having capacity of 100,000 MTPA of Ethylene and 75,000 MTPA of LDPE. Angarsk plant is one the largest Low Density Polyethylene plant of Russia and inculcates a significant portion of the overall Polyethylene (PE) production of the country.

In a recent scenario, where Russia registered an overall decline in demand for polymers in the country, several major players were compelled to reduce their prices to promote offtakes. As the demand for other polymers like Polypropylene (PP) decreased effectively, a major PP producer of Russia under low demand fundamentals reduced its prices by USD 275/MT – USD 345/MT (varied with grades).

Earlier, LDPE prices were heard soaring in February which finally reached a record high level due to bullish demand trend. However, prices later attained stability by beginning of March when supplies were heard stabilizing.

According to ChemAnalyst analysis, this plant shutdown is likely to affect the prices of LDPE in European market, as the company plays a significant role in satisfying the regional requirements for LDPE. However, the current price trend is unlikely to be reversed as there are several other top LDPE plants like Kazanorgsintez and Ufaorgsintez operating at optimum rates in the country. Despite of the fact that LDPE prices nosedived recently in effect of oversupply and low demand. It is expected that this plant turnaround may bring some stability to the prices of LDPE in domestic Russian market.