Since the second half of June on the Russian market there is a lack of supply of high-pressure polyethylene, and every day the deficit is only growing. Stopped its capacity for prevention “Gazprom Neftekhim Salavat”, then this month will be on the repair Ufaorgsintez and Angarsk RFP, which will further exacerbate the situation with the presence of polyethylene on the market. By mid-July the prices for individual items of polyethylene exceeded 110 thousand rbl. for ton.

Russian consumers of LDPE for the second time this year, faced with a deficit and a record price level (the first occurred in April due to production stoppages at Kazanorgsintez). In both cases this is subject to scheduled stops local plants for prevention. However, the current case is more serious.

From 24 June to 30-day prophylaxis stopped its capacities for HPH “Gazprom Neftekhim Salavat” (annual production capacity of 45 thousand tons). From 13th July to consistently stop at the prevention of their two queues Ufaorgsintez (annual capacity of 88 thousand tons). From 20th July to 28th August reglamenta work stand Angarsk SN (annual capacity of 77 million tons). Plus due to the lack of ethylene Kazanorgsintez (annual capacity of 210 thousand tonnes) from the end of June working at reduced capacity.

All of these factors (planned outages and lower production volumes) and led to a serious imbalance of supply and demand in the Russian market of LDPE. And judging by the timing stops production, this can take several months, because at the end of August for maintenance work will stop their production Tomskneftekhim (annual capacity of 240 thousand tons).

Rampant deficit by mid-July resulted in another record price level of high-density polyethylene. In most cases, refiners are forced to buy raw materials above the level of 100 thousand rubles. per ton, including VAT, FCA, and in some cases the transaction on delivery of PE for the production of shrink films reach 110 thousand rubles. per ton, including VAT, FCA and above.

Processors react differently to the situation. Someone suspends their purchases LDPE, not wanting to pay for raw materials more than 100 thousand rubles. per ton, including VAT, FCA. Some processors are forced to accept such high prices of LDPE due to the presence of commitments for the supply of film products to customers, while companies are trying to Pereslavl with consumers a new level of prices for finished products.