HDPE price rise accelerated in July in Russia

MOSCOW (MRC)–After a long period of price decline, high density polyethylene (HDPE) prices began to rise in Russia at the end of June. The dynamics of price growth increased in the second half of July on a serious reduction in supply, according to the ICIS-MRC Price Report.

Prices began picking up in late June as producers chose to export material for higher prices in Asian, Turkish and European markets rather than sell to domestic buyers while the rouble was weak.

This was exacerbated by a reduced volume of imported material, leading to tighter supply as seasonal demand increased.

Some sellers opted to suspend polyethylene (PE) sales in the last two weeks, as HDPE prices have increased globally and the devaluation of the rouble against the US dollar in June, further limiting available material.

Despite this, sales from external suppliers remained restricted for some segments, in particular affecting black-pipe grade PE100.

Export sales of extrusion grade PE also rose as demand recovered in June after falling in April-May.

Some sellers began to limit their sales since mid-July and in some cases, feedback indicated that sales were completely suspended due to lack of stocks.

Fundamentals were further unbalanced by the unplanned shutdown of part of Stavrolen”s capacities at the end of last week. The greatest shortage remained in black PE 100 segment.

The market of injection moulding HDPE remained balanced, with initial negotiations for August targeted at increases.

Deals for film HDPE were discussed from Rb73,000/tonne carriage paid to (CPT) Moscow, including VAT.

Price offers for blow moulding HDPE in some cases were heard at Rb79,500/tonne CPT Moscow, including VAT.

Kazanorgsintez and Stavrolen intend to shut down capacities in September-October for scheduled maintenance.

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