Prices for flax seeds from Kazakhstan surged on the European market last week after Russia restricted the transit of grain shipments across its territory toward ports in Estonia and Latvia. This was reported by Yevgeny Karabanov, head of the analytics committee at the Grain Union of Kazakhstan.
According to the Grain Union, the price for Kazakhstani flax—on a C&F ARAG (Cost and Freight, Antwerp-Rotterdam-Amsterdam-Ghent) basis—rose by $25 per tonne over the past week, reaching $670 per tonne for November shipments.
"The reason is that, in October, Russian Railways (RZD) rejected both primary and supplementary transport plans submitted by Kazakhstani shippers for flax destined for Estonian and Latvian ports, citing congestion on the Oktyabrskaya Railway caused by Russian grain shipments. According to Kazakhstan Railways (KTZ), the situation regarding the approval of transport plans toward Estonian and Latvian ports is not expected to improve in November," the expert explained.
He noted that an alternative route—via Belarus and Lithuanian ports—is $15–20 per tonne more expensive, though this route is also subject to certain restrictions.
Additionally, the price for Kazakhstani flax on a DAP (Delivered at Place) Dostyk/Altynkol basis increased by $3 per tonne over the past week, reaching $485–490 per tonne. Yevgeny Karabanov attributed this rise to a revival in demand from China and an increase in domestic prices within that country.
In Kazakhstan’s domestic market, the price of flax remained unchanged over the week, holding at 180,000–185,000 tenge per tonne (approximately $398–409 per tonne) on an EXW (Ex Works) basis.
The export price on an FCA (Free Carrier) Kazakhstan basis stood at $430–435 per tonne. The price for Kazakhstani brown flax (97% purity) on a DAP Poland basis is 495–500 EUR/t.
"Thus, the price of flax seeds is strengthening due to logistical constraints and rising transport costs," concluded Yevgeny Karabanov.