Prices of film grade HDPE fell significantly in Russia in mid-May

17 May 2017 10:23 Source:ICIS News

MOSCOW (MRC)--Prices of film-grade high-density polyethylene (HDPE) went down significantly in the Russian market in mid-May. Supply of film grade HDPE also grew greatly in the market, as per ICIS-MRC Price report.

Market participants said prices of film-grade HDPE had slumped in the market since 15 May. Polyethylene (PE) prices dropped by Rb2,000-5,000/tonne from early May. At the same time, supply of PE by Russian producers increased significantly.

Large imports of cheap material shipped from central Asia, particularly from Uzbekistan (Uz-Kor Gas Chemical’s PE), was one of the factors of a major price reduction of Russian film grade PE.

This PE has begun to be actively shipped to the Russian market since the beginning of last year. In early May, offer prices for Uzbek film-grade HDPE reached Rb87,000-87,500/tonne FCA (free carrier), including VAT, in the central part of Russia and in the Urals.

Some market participants said a major increase in supply, particularly, from Nizhnekamskneftekhim, was the second factor for lower PE prices. The Nizhnekamsk producer resumed its HDPE production this month, having, prior to that, exclusively manufactured linear low density polyethylene (PE) since mid-January.

Under the pressure of all these factors, prices of Russian film HDPE of most suppliers fell to Rb88,000-90,500/tonne FCA, including VAT, depending on the region.

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

By Sergey Karaichentsev