Demand for PP subsided in May on the back of the long holidays and converters" limited working capital. A high level of capacity utilisation at Russian producers led to growing stocks amid lower sales. However, Russian producers maintained their May PP prices for June. The market balance might seriously change because of a series of scheduled outages for maintenance. 

 

The price spread was wide enough in the raffia market. Deals for Turkmen raffia were done in the southen regions in the range of Rb63,800-64,000/tonne FCA, including VAT, FCA. Offer prices for Poliom"s raffia were in Sibiria around Rb64,000/tonne FCA Omsk, including VAT, while deals for raffia in the central part of Russia were done in the range of Rb65,000-66,500/tonne CPT, including VAT.

 

The price dispersion was more substantial in the injection moulding homopolymer of propylene (homopolymer PP) market. Deals were done in the range of Rb67,700-70,500/tonne CPT Moscow, including VAT.

 

Four producers plan to shut down their production for scheduled outages for maintenance in July and September. Tobolsk-Polymer and Tomskneftekhim will shut down their production for a one-month turnaround in July, while Ufaorgsintez and Poliom will stop their operations in late August.

 

A Russian PP producer said increased stocks was largely a planned event and would allow producers to fulfill their contractual obligations to customers during the scheduled shutdowns.