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Russian market is experiencing a temporary shortage of film HDPE

December 04/2013

MOSCOW (MRC) -- Growth in consumer activity amid tight supplies from Russian producers led to a shortage of film high density polyethylene (HDPE) in earlly December, according to ICIS-MRC Price report.

Buying activity in the local film HDPE market significantly increased in early December. Converters started actively forming additional inventories in anticipation of long New Year holidays. At the same time, some companies reported tight supply of polyethylene (PE) in the market.

The lack of film HDPE in the Russian market was caused by temporary reductions in supplies from Russian producers, namely, from Kazanorgsintez (its production was reduced in favor of blow moulding HDPE) and Nizhnekamskneftekhim (it had produced linear low density polyethylene (LLDPE) until mid-November and has begun producing a new extrusion grade since then).

The price spread in the Russian film HDPE market was wide enough on Monday, 2 December. Offer prices for Gazprom neftekhim Salavat"s PE started from Rb61,500/tonne CPT Moscow, including VAT (low prices are explained by the novelty of this PE in the market). Offers for Stavrolen"s PE started from an average level of Rb63,500/tonne FCA, including VAT. Offers for Kazanorgsintez"s film HDPE were heard at an average of Rb65,000/tonne FCA Kazan, including VAT.

Some traders have temporarily suspended PE sales because of its obligations to the regular customers.

Tight supply of film PE in the Russian market will continue until next week. Kazanorgsintez will have raised its capacity utilisation and Nizhnekamskneftekhim will have resumed production (first shipments are expected on 12 December) by this time. In the meantime, prices might grow slightly.
Author:Margaret Volkova
Tags:PE, LLDPE, HDPE, film extrusion, Gazprom neftekhim Salavat, Kazanorgsyntez, Nizhnekamskneftekhim, Stavrolen, Russia.
Category:General News
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