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HDPE prices hit new records in the Russian market

September 26/2011

(MRC) -- HDPE shortages in the Russian market have led to the bullish sentiments. Russian producers corrected their plans depending on maintenance stops in order to smooth current situation, but it is impossible now to cut back the deficit and stop the price growth yet, according to ICIS-MRC Price report.

HDPE shortage in the Russian market keeps growing, pushing up spot prices. In order to stabilize the situation in the domestic market, the Russian producers have changed their schedules of turnarounds in September - October. Stavrolen that previously had planned 45 days maintenance, reduced a stop duration to 10 days. Stavrolens production capacities are expected to be shut from October, 10th.

Nizhnekamskneftechem postponed its regular turnaround to the end of October. Kazanorgsyntez also cut the terms of maintenance by one week. HDPE production in Kazan is planned to restart in October, 5-6. Gazprom neftechem Salavat plans to begin HDPE production in early October. 1 September accident forced the company to stop its capacities for maintenance beforehand.

The Russian ruble devaluation against major world currencies significantly reduced attractiveness of PE purchases in the external markets over last two months. September export prices of European HDPE make EUR 1.080 1.120/t, FCA. Last export HDPE deliveries of Shurtansk GKhK were traded within USD 1.520 1.620/t, FCA. Asian and American PE for September shipment was offered at average for USD 1.480 1.560/, CFR St. Petersburg.

By the end of last week, Kazanorgsyntez and Stavrolen had declared increased prices of HDPE under the pressure of both external and internal factors. Contract prices increased by RUB 2.000-4.250/t, depending on PE grade and producer.

Price growth is also observed in the spot market. By the end of last week, the quotation for film and injection grades of HDPE in the spot market was recorded in a fairly wide range: RUB 60.500-67.000/t, including VAT, FCA, depending on PE grade. Blow-molding grade of  HDPE was offered an average for RUB 61.000-66.500/t, including VAT, FCA.

The only exception is pipe HDPE market, where weak demand for pipe material keeps the price down. Last week the coloured PE100 prices were fixed in the range of RUB 63.000-66.000/t, including VAT, FCA Kazan. Uncoloured PE100 was offered at average for RUB 62.000-63.000/t, including VAT, FCA.

Tags:HDPE, Kazanorhsyntez, Nizhnekamskneftechem, Stavrolen.
Category:General News
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