Prices of film grade HDPE continue to fall in Russia

MOSCOW (MRC)–Oversupply continued to pressure on prices of film grade high density polyethylene (HDPE) in Russia, according to ICIS-MRC Price report.

Prices peaked in the first half of May, and have been trending down since the middle of the month and through June.

Russia HDPE prices in rose dynamically in the first four months of 2021, following a similar price increase in the markets of Europe and Turkey.

Weak demand and oversupply have become the main reasons for the downward price trend.

Limited shipments of film-grade HDPE from Kazanorgsintez did not affect the balance of the domestic market, as supply of PE from ZapSibNeftekhim and Stavrolen was more than enough to meet the market needs. PE imports from neighbouring countries have also begun to grow for the past two months.

A week earlier, some sellers reduced their film grade HDPE prices to Rb120,000/tonne ($1,637/tonne), including VAT and delivery. At the beginning of this week, some market players, particularly, small-sized sellers for shipments of ZapSibNeftekhim’s PE, already negotiated deals in the range of Rb118,000-118,500/tonne, including VAT and delivery.

($1 = Rb73.32)

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