R&P POLYPLASTIC is ready to participate in the working group on drafting a motion to the Russian Government on price regulation of base polymers

The Working group is formed following the results of the 4^th Forum of the Association of Plastics Processors. Its final resolution contains a relevant decision.  Purpose for the request is to take measures on stabilizing the unprecedented rise of prices for polymer raw materials. By the end of February the price of several positions have already risen by 30%.

According to Market Report article at months-end January-February the average price for polypropylene in Russia has risen by 17%. Selective types of commodities have shown 25-30% price increase.

“Prices for March offers comparing to February have risen by 10-20 thousand Rubes per ton depending on the type of raw materials. When it comes to dynamics since the beginning of the year in the end of Q1 prices for PP-homo may rise by 20% with simultaneous limitation on quantity of shipments to Russian customers. This is due to rising exports. In March we will be purchasing block-copolymers at prices 36% higher than in January. In physical terms the difference is over 40 thousand Rubles per ton. The price of random copolymer by March rose by 26% or 32 thousand Rubles per ton comparing to the start of the year”, says Sergey Gulyaev, head of purchasing and logistics of R&P POLYPLASTIC.

Situation with polyamide-6 is not better. According to Sergey Gulyaev PA6 prices are steadily on the rise. By March, the price of prime PA6 rose by 26% comparing to December 2020.

This situation extremely negatively affects the whole production chain: processors of PP and PA6 have nothing else to do but to increase prices for their end products. “In February we were forced to inform our customers about increase of prices for polypropylene compositions by 11% and polyamide-6 compositions by 9%. Before that, we held down the prices as long as we could. However, we had to rise them due to the abovementioned dynamics. And as things stand I can't be sure that this is our last increase. Apart from base polymers such as PP and PA6, prices for fillers and modifiers are also rising”, – Pavel Kruglov, Director General of Trade House Polyplastic commented.

Mikhail Katsevman, chairman of the Association of Plastics Processors notes that steady increase of prices for base polymers without any documentary support has meaningful pressure on the whole industry and can roll back all export substitution achievements of the recent years. “We decided to address the Russian Government – we want it to understand the gravity of the situation and ask to take measures for regulating prices for base polymers. We have already communicated our proposal about creation of the working group with the Ministry of Industry and Trade. We hope we will soon receive a positive reply and start acting”.  

Apart from representatives of the Ministry of Industry and Trade, we invite members of the Association of Plastics Processors, leading compounders and producers of base polymers to participate in the Group. It will start working in the nearest future.