As it had been expected, prices in the Russian PE market increased again in August. Prices for nearly all PE types have risen since the beginning of the month. At the same time, there is lack of the material in some production sectors, particularly, in the sector of blown HDPE. In June, Kazanorgsyntez did not produce the 276-73 HDPE brand; in mid-July they resumed feedstock production, and the output had exceeded 6 kt by the end of the month. By all accounts, they are not going to produce the 276th HDPE grade in August. In June, Stavrolen produced more than 3.7 kt of the 276th HDPE grade. Market players report on major decrease in HDPE output in July.
Shurtan Gas-Chemical Plant seriously cut supply of HDPE to Russia due to fulfillment of a big export order. Feedstock is to be delivered to Russia within the nearest future; however, trading companies report that the major share of the feedstock has already been sold. Currently, minor volumes of Kazanorgsyntez’s feedstock are offered within the range of RUB69.000–74.000/mt, including VAT. TVK’s HDPE is the immediate alternative to the Russian feedstock; August prices vary within the range of EUR1.420-1.430/mt, FCA.