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Situation in the market of pipe HDPE in Russia stabilised in July

July 20/2018
MOSCOW (Market Report) - Supply of polyethylene (PE) increased significantly this month in Russia after the shortage of natural high density polyethylene (HDPE) in June. But this factor did not help to avoid a significant rise in prices in the market, according to the ICIS-MRC Price Report.

A significant shortage of natural pipe HDPE in June was a surprise for Russian consumers, since the beginning of the year market was oversupplied. Taking this into account prices of pipe PE began to grow dynamically, and some Russian producers had to seriously adjust their production plans for July. The situation in pipe PE market has stabilised by mid-July, but a serious rise in price of raw materials still could not be avoided.

A key supplier of natural pipe HDPE in the Russian market - Gazprom neftekhim Salavat (GnS) - shut its capacity for a turnaround in early July, but the shutdown was not long. The offer of Salavat polyethylene has grown significantly by the middle of July, Customers of the plant said only pipe PE from GnS will be produced until September.

Stavrolen also increased production of pipe PE in the beginning of the month, although some of the volumes were supplied to export markets. Partly the need for raw materials producers of pipes satisfied with natural HDPE grade 273-83; Russian pipe producers sold the July quotas of this PE in the first decade of the month.

The rush in the market of natural pipe HDPE has subsided by mid-July. The supply of material has grown significantly, although there is still no excess. And, most likely, this status quo will continue in August.

Prices for natural pipe HDPE began rising in mid-June from the level of Rb94,000/tonne CPT Moscow, including VAT, and by the end of the month in some cases it reached Rb100,000/tonne CPT Moscow, including VAT. Some suppliers slightly increased PE prices for their customers in July further, but on average the prices were settled slightly above Rb100,000/tonne CPT Moscow, including VAT.
Author:Anna Larionova
Tags:PE, HDPE, pipe extrusion, Gazprom neftekhim Salavat, Stavrolen, Russia.
Category:General News
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