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Tight pipe-grade HDPE market pushes prices up in Russia

July 28/2010

MOSCOW (MRC) -- Seasonal increase in demand in view of tight supply of black pipe-grade HDPE is resulting in growing prices. By the middle of the week prices for Russian black PE100 have moved at RUB 58.500 - 61.500/mt - according to MRC Price reports.

Tight pipe-grade HDPE market pushes the prices up in Russia


Demand for pipe-grade polyethylene has been growing dynamicly during the summer. In view of scarce domestic output volumes, some large Russian pipe producers began to increase purchases from foreign suppliers. Overall June pipe-grade HDPE imports amounted to 6 kt. Medium and small converters prefered less expensive Russian material.


Unplanned suspension of HDPE facilities at Stavrolen due to technical problems earlier in July and Kazanorgsyntez's export contracts resulted in a serious reduction in supply of black pipe-grade HDPE to the domestic market in H2 July. Tight pipe-grade PE supply in view of strong demand affected polyethylene price. By the middle of the week, prices for Russian black PE100 had reached the level of RUB 58.500 - 61.500/mt, including VAT, FCA. European and Asian black PE100 for August and September is offered at RUB 62.000 - 65.000/mt, including VAT, FCA.


For more information please refer to MRC "Polyethylene in Russia" Price reports.

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