After the June deficit in the Russian market of natural low-pressure polyethylene pipe (HDPE), in July the supply of polyethylene (PE) increased significantly. But this factor did not allow to avoid a serious rise in prices in the market, according to the ICIS-MRC Price Review.

A serious shortage of natural pipe HDPE on the market in June was a surprise for Russian consumers, since the beginning of the year there was a surplus of supply on the market. Against this background, the prices of pipe PE on the market began to grow dynamically, and some Russian producers had to seriously adjust their production plans for July. By mid-July, the situation on the pipe PE market has stabilized, but a serious rise in price of raw materials still could not be avoided.

A key supplier of natural HDPE pipes to the Russian market – Gazprom neftekhim Salavat (STS) – stopped its capacity for prevention in early July, but the capacity was not long. And by the middle of July, the offer of Salavat polyethylene has grown significantly. As the customers of the enterprise informed, only the polyethylene pipe of the STS will be produced until September.

Stavrolen also worked hard at the beginning of the month for pipe polyethylene, although some of the volumes were supplied to export markets.

Part of the need for raw materials pipe manufacturers satisfied with natural HDPE brand 273-83, Russian manufacturers sold the July quotas of this PE in fact in the first decade of the month.

The excitement in the market of natural HDPE pipes by mid-July was asleep. The supply of material has grown considerably, although there is still no excess. And, most likely, this status quo will continue in August.

The increase in prices of natural pipe HDPE in the market began in mid-June from the level of 94 thousand rubles. per ton, including VAT, CPT Moscow, and by the end of the month in some cases it reached 100 thousand rubles. per ton, including VAT, SRT Moscow. In July, there was a further slight increase in PE prices for individual suppliers, but on average the prices were set slightly above 100 thousand rubles. per ton, including VAT, SRT Moscow.