The profitable export of polymers leads to shortages on the Russian market

Small Russian polymer processors have been faced with shortages of raw materials and a sharp rise in prices - by 30% since the beginning of the year, which threatens them with stop of the production. The main reasons are devaluation of the ruble, which made export very attractive, and repairs at the supplier's enterprises. Large processors hedge the situation through long-term contracts, but they are unavailable for small plants. Experts expect stabilization of the prices only by summer.

On April 10, a number of small polymer processors in St. Petersburg - ORA, Evroplast, Avance and Baltenergosistemy – sent a letter to President Vladimir Putin, in which they asked him to instruct the Government to investigate the situation with the chemical raw materials on the domestic market, the companies told the Kommersant. We are talking about high and low pressure polyethylene (LDPE and HDPE), polypropylene and polystyrene. Thus, the companies indicate that the supply of LDPE to the spot market of the Russian Federation decreased by at least 80%, and the commodity prices grew by more than 30% since the beginning of the year (an increase over the year is almost 70%) to 100 thousand rubles per ton. The letter notes that there is "a huge shortage of raw materials on the market, which has already led to stoppages". Sources of the Kommersant on the market note that similar situation exists in all Russian regions.