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HDPE prices began to rise in Russia after a long period of price cuts

July 15/2020

MOSCOW (MRC) - Prices of high density polyethylene (HDPE) have been going down over the last nine months in Russia due to excess supply. Situation improved in July; some grades of HDPE prices began to rise gradually, according to ICIS-MRC Price Report.

Russian HDPE prices began to decrease in October last year mostly because of a significant surge in imports. The surplus had significantly affected PE prices for nine consecutive months until June, when HDPE prices fell to the level of 2014. But situation began to change in July also because of a significant increase in the cost of polyethylene in foreign markets. The black pipe grade HDPE showed the greatest price increase.

The devaluation of the rouble and a serious decrease in price in the Russian market led to a significant drop in HDPE imports. So, external deliveries of polyethylene decreased by a third in Q2 compared to the average in 2019 and did not exceed 21,000 tonnes on average per month, while in June, the import indicator fell below 19,000 tonnes.
Prices have been stable since May in the markets of Europe, Asia and Turkey; HDPE prices increased by USD100-220/tonne, depending on the region.

Depreciation of the rouble against the dollar in July made exports even more attractive to Russian producers.
Some producers increased export sales in July. The reduction in imports, the growth in exports and the seasonal increase in demand in July made it possible to balance the Russian market for many HDPE grades, and there was even a shortage for some positions.

The tightest supply was felt in the pipe HDPE segment, some Russian producers have reduced the supply of polyethylene to the domestic market in favour of export. There were also problems with the purchase of black PE100 in foreign markets.

Russian black PE100 prices increased to Rb85,500/tonne CPT Moscow, including VAT and above. Supply of HDPE for extrusion blow moulding  () of large containers has been tight since the second half of June. There were interruptions in supplies from domestic manufacturers, and imports have also declined.

Prices of imported analogues reached Rb73,000/tonne CPT Moscow, including VAT. The HDPE film market was relatively balanced in terms of supply and demand. Last week, some sellers increased prices, although the price surge was quite modest and amounted to about Rb1,000/tonne. But taking into account the export alternative, producers still hope in the near future to achieve a more noticeable increase in prices.

mrcplast.com
Author:Anna Larionova
Tags:PE, HDPE, blow moulding, injection moulding, film extrusion, pipe extrusion.
Category:General News
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