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HDPE price rise accelerated in July in Russia

July 31/2020

MOSCOW (MRC) - After a long period of price decline, high density polyethylene (HDPE) prices began to rise in Russia at the end of June. The dynamics of price growth increased in the second half of July on a serious reduction in supply, according to the ICIS-MRC Price Report.

The long period of surplus and decline in HDPE prices in Russia ended in the second half of June. The weakening of the rouble and high prices of polyethylene in foreign markets forced some producers to increase export volumes in July, and imports also decreased. And these factors, in the context of seasonal growth in demand, led to a lack of HDPE supply in the market, followed by a dynamic rise in prices.

At the same time, some of the sellers have actually suspended all their polyethylene sales in the last two weeks. The rise in world prices of HDPE and the devaluation of the rouble against the dollar in June began to put pressure on imports, in the next month external supplies decreased even more.

At the same time, even in conditions of high prices, there are serious restrictions on sales from external suppliers in some segments, in particular, black pipe PE100. Serious price imbalance in the Russian market and in the markets in Asia, Turkey and Europe forced some domestic producers to increase their export volumes.

Export sales of extrusion grades of polyethylene increased. Demand for HDPE has begun to gradually recover in the Russian market since June after falling in April-May. And the growth in exports and the reduction in imports amid growing demand led to a serious reduction in supply.

Some sellers have begun to limit their sales since mid-July; in some cases, it was reported that sales were completely suspended due to lack of stocks. The situation with the balance of demand and supply of HDPE in the market was significantly worsened by the unplanned shutdown of part of Stavrolen"s capacities at the end of last week. The greatest shortage remained in black PE 100 segment.

The market of injection moulding HDPE was more or less balanced. Negotiations on August delivery of HDPE have begun this week. Many suppliers announced an increase in prices.

Deals for film HDPE were discussed from Rb73,000/tonne CPT Moscow, including VAT. Price offers for blow moulding HDPE in some cases were heard at Rb79,500/tonne CPT Moscow, including VAT. At the same time, not all sellers began to discuss the August deliveries.

It should also be understood that Kazanorgsintez and Stavrolen intend to shut down their capacities in September-October for scheduled preventive maintenance.


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