MOSCOW (MRC) -- Imports of high density polyethylene (HDPE) to Russia fell by 31% over the first three months of 2014. Weak demand and higher prices were the main reasons for reduced imports polyethylene (PE), according to MRC DataScope.
March HDPE imports to Russia dropped to 15,000 tonnes (18,400 tonnes in February). Thus, the overall HDPE imports totalled 52,900 tonnes in the first quarter of 2014, while this figure was 76,200 tonnes over the same period of 2013. The main reasons for reduced imports were weak demand from local converters and higher prices of imported material (the rouble depreciated by 11% in March). The unscheduled outage at Stavrolen did not affect import shipments.
The imports structure by consumption sectors over the stated period looks the following way.
Imports of HDPE for extrusion coating of large-diameter steel pipes slumped to 2,700 tonnes last month (8,000 tonnes in February). Imports of these PE grades to Russia dropped over the first three months of 2014 by 4% year on year and totalled about 17,900 tonnes.
March imports of pipe grade PE were 3,200 tonnes (3,000 tonnes in February). The overall pipe grade HDPE imports totalled from January to March 10,200 tonnes, down by twofold compared with the first quarter of 2013.
Injection moulding HDPE was the only PE grade, which imports increased. Thus, March imports reached 3,200 tonnes. Imports of injection moulding PE grew in the first quarter of the year to 10,800 tonnes from 10,600 tonnes a year earlier.
Last month's imports of film grade and blow moulding HDPE were 2,000 tonnes (1,500 tonnes in February) and 3,000 tonnes (1,600 tonnes in February), respectively. The overall imports of these HDPE grades slumped over the stated period by 65% and 33% year on year and reached 4,800 tonnes and 6,500 tonnes, respectively.
The overall March imports of HDPE for other consumption sectors totalled about 1,000 tonnes. This figure over the first three months of 2014 was about 2,700 tonnes, while it was 3,100 tonnes a year earlier.
HDPE imports are still expected to increase in April and May. Seasonal stronger demand and an outage at Stavrolen, the second-largest producer in Russia, will be the main reasons for the growth. As reported earlier, Russian companies were actively purchasing HDPE in March in Uzbekistan, some market participants reported an increase in purchasing of pipe grade PE in Asia.
MRC