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Film HDPE supplies to Ukraine increased in November

December 15/2010

MOSCOW (MRC) -- In November Ukrainian companies increased HDPE supplies to the domestic market. Supplies of film HDPE grew twice as much that allowed to phase out deficit, according to MRC analysts.

In September while expecting restart of HDPE production at Karpatneftekhim (Lukoil Group) and output of cheaper domestic film polyethylene, Ukrainian companies considerably reduced material purchases in Europe and Russia. By October capacities in Kalush had reached full loading but polyethylene supplies to the domestic market occurred only mid-November.

Film HDPE supplies to Ukraine increased in November

In September-October film HDPE supplies to the Ukrainian market grew to the level of 3.8 4 KT, as a result there was insignificant deficit in the market. In November Ukrainian companies widened the geography of PE purchases and  increased total imports to 6 KT. Also the first PE from Kalush appeared. 

In December many European producers considerably limited their export quotas for film PE. Deficit in the market of film HDPE in Russia also affected export prices and quotas this month for the Ukrainian market. And the euros decline against the dollar made the Russian material more expensive compared to the European one. Still there are problems with Kalush supplies to the domestic market.

Nevertheless the Ukrainian market of film HDPE doesnt demonstrate serious problems. Seasonal reduction of demand balanced the market. The growth of export prices for European HDPE by EUR 20-30/mt levelled euro rate. The prices for European film polyethylene remained without considerable changes compared to November and they are within the range of 14.400 14.800 UAH./t, including VAT, FCA.

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