PE imports to Kazakhstan down 12% year on year in H1 2016

MOSCOW (MRC)–Imports of polyethylene (PE) into Kazakhstan dropped in the first six months of 2016 by 12% year on year, totalling 48,800 tonnes, according to MRC analysts.

Demand for low density polyethylene (LDPE) and high density polyethylene (HDPE) subsided significantly.

June 2016 PE imports to Kazakhstan decreased to 7,300 tonnes from 10,800 tonnes a month earlier.

Local companies, particularly pipes producers, reduced their purchasing of HDPE. Overall imports totalled 41,500 tonnes in January-June 2016, compared to 46,000 tonnes in the same period a year earlier.

Demand for HDPE and LDPE subsided, whereas demand for a linear low density polyethylene (LLDPE), on the contrary, increased.

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

June HDPE imports to Kazakhstan fell to 5,100 tonnes from 9,600 tonnes a month earlier.

Pipes producers accounted for the main reduction in shipments with companies reducing their purchasing of PE in Russia because of large stocks at the warehouses from purchases in May and June.

Thus, overall HDPE imports were about 37,000 tonnes in the first six months of 2016, down 13% year on year.

Last month’s purchasing of LDPE by local companies almost doubled, as compared to May, totalling over 1,700 tonnes.

Low imports in May were caused by limited export quotas of Russian producers because of an acute shortage in their own market.

Overall LDPE imports into Kazakhstan totalled 9,300 tonnes in January-June, down by 12% year on year.

Purchasing of LLDPE by local companies rose to 400 tonnes in June from 351 tonnes a month earlier.

LLDPE imports were 2,400 tonnes in January-June 2016, compared to 2,200 tonnes a year earlier.

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