HDPE prices remain record high in the Russian market

MOSCOW (MRC)–Negotiations over December prices of high density polyethylene (HDPE) began in Russia late last week, according to ICIS-MRC Price report.

Some sellers announced a price increase of roubles (Rb)5,000/tonne, and others intend to maintain their prices at the level as of the second half of November.

HDPE supply has been increasing gradually in the Russian market after the end of the producers’ shutdowns for maintenance and higher capacity utilisation, but there has been no talk about oversupply so far.

The devaluation of the rouble against the dollar significantly reduced the ability to increase imports.

Some sellers rolled over polyethylene (PE) prices as of the second half of November for December deliveries, and in some cases, buyers even reported a price rise of Rb5,000/tonne.

Gazprom neftekhim Salavat and Kazanorgsintez finished their turnarounds in September-October.  Stavrolen resumed its HDPE production after a long shutdown for maintenance, closing this year’s scheduled shutdowns for repairs at Russian plants.

Supply of PE has been increasing gradually in the market, and demand has been subsiding in some consumption segments due to seasonal factors. In addition, record high prices have been putting a major pressure on demand for the past few months.

This year’s HDPE imports are 20% lower than last year. Some market participants reported a slight increase in imports from Iran.

In the spot market, some sellers announced their December offer prices for film grade HDPE in the range of Rb150,000-156,000/tonne, including VAT and delivery. The spread of blow moulding PE prices was wider and ranged between Rb150,000-167,000/tonne FCA, including VAT and delivery.

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