Kazakhstan Flax Prices Surge Sharply on the European Market

Last week, the European market recorded a sharp increase in prices for Kazakh oilseed flax seeds. The primary reason behind this price surge is transit restrictions through the territory of the Russian Federation towards Baltic ports, alongside rising logistics costs across alternative routes. This was stated by Yevgeny Karabanov, head of the analytics committee at the Grain Union of Kazakhstan, in his Telegram channel.

According to the analyst, the price of Kazakh flax on C&F ARAG terms increased by 25 USD per ton, reaching 670 USD per ton for November shipments. The main catalyst was the rejection by Russian Railways (RZD) in October of the primary and additional transportation plans for Kazakh flax shippers heading toward Estonian and Latvian ports. These restrictions were triggered by high congestion on the October Railway due to Russian grain shipments.

According to Kazakhstan Temir Zholy (KTZ), the situation regarding the approval of shipping plans toward Baltic ports will not improve in November, setting the stage for further price increases. Data from the Grain Union of Kazakhstan indicates that alternative logistics routes through Belarus and Lithuanian ports are 15–20 USD per ton more expensive, though certain restrictions apply there as well.

Along with the European direction, last week also saw an increase in the price of Kazakh flax under DAP Dostyk / Altynkol terms by 3 USD per ton, reaching 485–490 USD per ton. Experts attribute this to reviving demand in China, with domestic prices rising by an average of 50 CNY per ton. Meanwhile, the export price under FCA Kazakhstan delivery terms remained unchanged at 430–435 USD per ton, and brown flax with 97% purity under DAP Poland terms stayed steady at 495–500 EUR per ton.

As for Kazakhstan's domestic market, flax prices on an EXW basis remained stable during the reporting period. The cost of raw materials stayed within the range of 180–185 thousand tenge per ton, which equates to approximately 398–409 USD per ton. Market participants continue to monitor ongoing logistics developments across major export corridors.