PE imports into Kazakhstan up by 12% year on year in Q1

MOSCOW (MRC)–Imports of polyethylene (PE) into Kazakhstan rose by 12% year on year in the first quarter to slightly over 24,000 tonnes, with low density polyethylene (LDPE) accounting for the main increase in supply, according to MRC analysts on Wednesday.

March 2016 PE imports into Kazakhstan rose to 11,300 tonnes from 8,300 tonnes a month earlier. The increase in shipments was caused by both seasonal factors and some companies’ desire to build up additional inventories for the period of scheduled maintenance at Russia’s main producers-suppliers.

Overall imports totalled slightly over 24,000 tonnes in January-March 2016, compared to 21,500 tonnes in the same period a year earlier. LDPE accounted for the greatest increase in supply, whereas imports of high density polyethylene (HDPE) rose insignificantly.

The structure of PE imports by grades looked the following way over the stated period.

March HDPE imports to Kazakhstan grew to 7,900 tonnes from 6,400 tonnes a month earlier. Local pipes producers accounted for the main increase in supply and Russian PE producers increased their shipments. Thus, overall HDPE imports totalled slightly over 16,00 tonnes in the first three months of the year, up by only 2% year on year.

Last month’s LDPE imports by local companies surged to 3,100 tonnes from 1,700 tonnes in February. Such a major increase in imports was caused by some companies’ desire to build up additional PE inventories for a period of deficit in the Russian market because of the scheduled shutdowns for maintenance at key producers.

Some producers refused to ship HDPE into Kazakhstan in April. LDPE imports to Kazakhstan rose to 7,100 tonnes over the stated period, up by 50% year on year.

Purchases of linear low density polyethylene (LLDPE) by local companies were relatively stable and scarce in the total volume. LLDPE imports were 840 tonnes in January-March 2016 versus 1,200 tonnes a year earlier.

MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.