MOSCOW (MRC) -- In early July, prices of injection moulding HDPE unexpectedly began to rise, which resulted in a shortage of material in the Russian market, as per MRC analysts.
July in the Russian market of HDPE began with the deficit of injection moulding material and the price increase. The deficit was caused by prolonged stop of HDPE production by Kazanorgsintez, as well as Gazprom neftekhim Salavat’s switching to the production of pipe polyethylene.
Before that, Russian market was saved by the imports of polyethylene from Uzbekistan, but in April - May Shurtan GKhK suspended the deliveries of injection moulding HDPE to Russia and resumed them only in mid-June.
There are small volumes of injection moulding HDPE from Salavat in the spot market. The price quotations increased this week on average by Rb1,000/tonne, and started from Rb65,500/tonne, including VAT, FCA.
Market players expect next week the arrival of fresh volumes of Uzbek polyethylene, but it has been already sold out.
This situation is hardly to improve by the end of the month. Kazanorgsintez plans to resume the output of injection moulding HDPE in the end of July.
Gazprom neftekhim Salavat is to stop its PE capacities on the turnaround from July, 23.
MRC