MOSCOW (MRC) -- A slight shortage of natural pipe high density polyethylene (HDPE) was seen in August in the Russian market. The supply will became tighter in September, producers will increase prices further, according to the ICIS-MRC Price Report.
Tight supply of pipe HDPE in the Russian market began to be felt in the first month of the summer and continued until August. During the summer months, there was a period of active growth in polyethylene prices. The availability of raw materials in the market will deteriorate sharply in September due to plans of key suppliers of this polyethylene.
Negotiations on the September prices of Russian pipe HDPE have begun this week, market participants said, the price rise of Rb10,000/tonne is being discussed.
A sharp deterioration in the supply of pipe polyethylene in the Russian market in September will be a result of several factors. First, the key supplier of black PE100 - Kazanorgsintez will shut its capacity for almost three-week maintenance works from 25 September. Secondly, the customers of the enterprise said, the key supplier of natural pipe HDPE - Gazprom Neftekhim Salavat - shifted to the production of injection moulded HDPE in the last days of August, and will return to the production of pipe PE only in October. It is also very likely that Stavrolen will not produce pipe polyethylene in September.
The situation can be mitigated at the end of September-October by Nizhnekamskneftekhim, which plans to return to the production of HDPE, including pipe, from 20 September.
So, the price of natural pipe HDPE in the Russian market grew to Rb113,000-114,000/tonne FCA, including VAT.
Prices of black PE 100 exceeded Rb114,000/tonne CPT Moscow, including VAT. Negotiations on September deliveries of black PE100 started this week, negotiators said that suppliers intend to achieve a price increase of Rb10,000/tonne in comparison with the level of August.
MRC