MOSCOW (MRC) -- Prices of high density polyethylene (HDPE) continued to go down in the Russian market in November. Prices of all polyethylene (PE) grades decreased, however, film grade and injection moulding PE accounted for the greatest fall in prices, according to ICIS-MRC Price reports.
Demand was traditionally weak in the HDPE market in the last month of autumn, and this November was no exception for the Russian market. The need for PE was reduced in all consumption sectors, whereas supply of material was excessive in the market. HDPE prices were virtually adjusted weekly during the month, and this factor put an additional pressure on demand.
Supply of HDPE by producers slumped in November, but even this fact did not help to balance the Russian market. Specifically, some producers more than doubled their export PE sales compared to October. Thus, 24,000 tonnes of HDPE were shipped to foreign markets during 27 days of November, whereas only 13,500 tonnes were sold for export in October.
Nizhnekamskneftekhim switched to linear low density polyethylene (LLDPE) production from mid-October to 27 November (the plant's annual production capacity is 210,000 tonnes), which also reduced supply of HDPE in the domestic market.
However, all these factors did not help to balance the domestic market.
Prices of film grade HDPE had dropped to Rb97,300-99,000/tonne by early December, CPT Moscow, including VAT. The price spread remained quite wide in the blow moulding and injection moulding HDPE markets. Prices of injection moulding HDPE fell to Rb90,000-98,300/tonne, CPT Moscow, including VAT, whereas prices of blow moulding PE decreased to Rb95,500-101,300/tonne CPT Moscow, including VAT.
A wide price dispersion between natural and coloured PE also remained in the pipe grade HDPE segment. Prices of natural PE 100 had dropped to Rb94,000-97,800/tonne by early December, CPT Moscow, including VAT. Prices of coloured PE 100 reached Rb104,300/tonne, CPT Moscow, including VAT, and lower.
MRC