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In Russia pipe HDPE price down in July

July 22/2011

MOSCOW (MRC) -- In July, Russian pipe polyethylene (PE) keeps on cheapening on low sales of PE pipes, as per ICIS-MRC Price report.

The first half of the year was rather difficult for Russian producers of PE pipes. Low demand for PE-pipes was accompanied with steadily increasing prices of feedstock. By mid-June, prices of pipe HDPE had been corrected in the domestic market, but it didnt result in significant increase of demand for finished PE-pipes.

July isnt marked with growing buying activity in the pipe market. Moreover, this year demand for PE pipes for the gas pipeline has reduced considerably. A share of gas pipes in some producersoutput doesnt not exceed 10% in total.

There are no problems with the availability of raw pipe material in the market. This  year Russian producers have increased production of colored pipe PE80 and PE100 up to 106 KT (excluding overall production of 273- 83 PE), uncolored  PE100 (so-called uncoloured matrix) to 70 KT. The increase in production of uncoloured pipe HDPE and significant price difference between colored and uncolored PE100 determine the preferences of Russian converters in the use of uncoloured material.

This week price offer for the Russian colored PE100 has been reduced to RUB 63.000 - 64.500/t, including VAT, FCA Kazan. Uncoloured PE100 is offered, on average, for RUB 56.500 - 57.000/t, including VAT, FCA Nizhnekamsk Salavat.

Tags:PE, HDPE, gas drive pipe.
Category:General News
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