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Prices for pipe-grade polyethylene rising

August 18/2009
MOSCOW (MRC) -- Prices for pipe-grade polyethylene keep on rising in Russia – MRC’a analysts reporting.

There is still lack of pipe-grade HDPE in the market. After the seven months, the capacity of the pipe-grade HDPE market exceeded 75 kt. In August, overall output of pipe-grade PE would exceed 16 kt, according to MRC forecast.

Lack of pipe-grade PE used to produce pipes resulted in a serious increase in prices. Kazanorgsyntez’s PE100 was offered at RUB58.000/mt; prices for material produced by Nizhnekamskneftekhim varied within the range of RUB51.000–53.000/mt.
The pipe-grade HDPE market was surplus in Q1. Shipments of pipe-grade feedstock to the domestic market shrank seriously together with the suspension of the production in Budennovsk. Market demand began to grow at the end of May, and Russian converters faced shortage of material already in July. Lack of feedstock is partially compensated by natural HDPE grades and imports. In July, overall pipe-grade HDPE imports moved at 4.5 kt. 

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For more detailed information, see Price report
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