MOSCOW (MRC) - April prices for Russian pipe high density polyethylene (HDPE) increased by Rb3,000 - 6,500/tonne, according to ICIS-MRC Price Report.
Despite the expectations of many Russian pipe producers, they did not manage to roll over March PE prices for April delivery. Russian producers managed to increase prices for pipe HDPE significantly, citing strong demand and more expensive imports. April prices for pipe HDPE increased by Rb3,000-6,500/tonne, compared with the March level.
Demand for pipe HDPE was quite strong in the early April. Many market participants have built up stock inventories actively, some companies said that they purchased, taking into account the needs of the May. The supply of polyethylene in the market was tight, in particular natural PE100. There was available only HDPE from Nizhnekamskneftekhim.
But in the second half of April, demand for pipe HDPE has significantly weakened. One of the key factors of the demand weakening was the problem with working capital; converters had problems with crediting. As a result, many pipe producers had to change their plans for the feedstock procurement.
April deals for Russian natural PE 100 were done in the range of Rb89,000-93,500/tonne FCA, including VAT. The price range of black PE100 was less significant, the deals were done in the range of Rb92,500-94,500/tonne CPT Moscow, including VAT.
MRC