The devaluation of the ruble and the growth of oil quotations led to a rise in the price of low-pressure polyethylene (HDPE) in May on the Russian market. The greatest increase in prices was noted for pipe polyethylene (PE), which went up by 6 thousand rubles. per ton, according to the ICIS-MRC Price Review.
Russian producers managed to balance the domestic market after the surplus winter months, except for film HDPE. PE import volumes are still significant for the Russian market, but the weakening of the ruble against the dollar also led to an increase in the cost of imported HDPE. In general, the increase in prices was from 2 thousand to 6 thousand rubles. per ton, the greatest increase in prices fell on the black pipe PE.
At the end of April – early May, there was a small shortage of supply in the market of injection molded HDPE, but there was no agiotage in this connection. In the second half of May, the supply of this polyethylene grew due to the growth in production from the side of Kazanorgsintez. The spread of prices during the month was quite large, in some cases the prices reached the level of 94.5 thousand rubles. per ton, including VAT, SRT Moscow.
In the first half of May, the demand and supply were balanced in the market of blow-molded HDPE, but already in the third decade of the month some sellers began to restrict their sales, in particular, the HDPE of mark 273-83, which was the reason for the price increase. In general, during May, the contracts for the supply of blown HDPE were in the range of 89 000-92 500 rubles. per ton, including VAT, SRT Moscow.
In the first two decades of May, the offer of natural HDPE pipe was limited in the market. Due to a number of reasons, key suppliers of this PE – Stavrolen and Gazprom Neftekhim Salavat – only in the third decade renewed supplies of polymer to the domestic market. At the same time, the lack of supply did not lead to an increase in prices, in the last days of May, deals are agreed in the range of 91,500-93,000 rubles. per ton, including VAT, SRT Moscow.
In contrast to natural, black tubular HDPE grade PE100 has risen from 101.5 thousand rubles. per ton, including VAT, CPT Moscow, in April to 107.5 thousand rubles. per ton, including VAT, SRT Moscow, this month.
The offer of film HDPE in the market is excessive, and this factor limited the price increase in May. Russian PE was sold for 93 500-95 500 rubles. per ton, including VAT, CPT Moscow, Uzbek bimodal HDPE rose in price by the end of the month to 92 thousand rubles. per ton, including VAT, SRT Moscow.