MOSCOW (MRC) - Prices for high density polyethylene (HDPE) in the Russian market remained steady in the Russian market in January. Prices for HDPE in most cases were rolled over from the December level, the only exception were price for pipe PE, according to ICIS-MRC Price Report.
The excess of HDPE supply began to be felt in December, particularly in the sector of film PE. However, this factor has not led to price cuts, moreover, December HDPE prices were rolled over by the local producers for January delivery. The exception was coloured pipe PE - producers had to reduce the price gap between natural and coloured grades.
Supply of film HDPE is enough in the local market, despite the minor problems at Stavrolen and temporary suspension of operation at Kazanorgsintez. Stocks made during the long holidays allow to cover the current needs of the market.
The price range in the market is small, most deals were done in the range of roubles (Rb) 106,000-106,500/tonnes FCA, including VAT, (excluding the price of PE from Gazprom neftekhim Salavat).
Supply of blow moulding HDPE has slightly tightened on the back of disruptions at Stavrolen earlier this month. Price offers for PE for the production of overall packaging (grade 273-83) in the range of Rb100,500-102,000/tonne FCA, including VAT.
Prices for injection moulding HDPE remained quite high. PE prices from Kazanorgsintez were on average at Rb115,000/tonne FCA, including VAT. Price offers for imported PE were heard in the range of Rb113,000-114,000/tonne FCA, including VAT (Astrakhan, Orenburg).
This week, some market participants have received price offers for injection production HDPE from Gazprom neftekhim Salavat, but there was no information about deals done. There was only available offers for pipe natural HDPE by Nizhnekamskneftekhim production - on average at Rb106,000/tonne FCA, including VAT. Gazprom neftekhim Salavat plans to resume the supply of this type of PE not earlier than next week.
MRC