Domestic low-pressure polyethylene (HDPE) polyethylene prices in China may rise amid limited supplies, due to the fact that manufacturers switch to the production of other brands, ICIS reports.
Producers PND / LDL, especially on the basis of coal, switch to the production of brands at a higher price.
Although prices for HDPE decreased from the second half of 2018, they remained above LDL prices from late January to early June 2019, and this prompted manufacturers to switch their production to HDPE production.
According to ICIS, the production of HDPE in China grew by 77% year on year in January-May this year. Against the background of significant supplies, prices for injection molded HDPE in May fell to a ten-year low.
Some industries switched to the production of LDL.
In particular, on June 24, Shenhua Ningxia Coal Industry switched to the production of linear polyethylene (LDL).
At the same time, CNOOC and Shell Petrochemicals Co (CSPC) are expected to produce PND blown grades from the beginning of July, rather than injection molding, as in June.
On July 5, according to ICIS, the prices for injection molded HDPE were at the level of CNY8 100 per ton EXWH in eastern China, which is 5% more than on June 28.
According to the results of May, the estimated consumption of HDPE in Russia increased to 107.56 thousand tons against 96.4 thousand tons a month earlier. Some producers increased output, exports were also reduced. At the end of January – May, the estimated consumption of HDPE in the Russian Federation was 483.79 thousand tons, which is 8% more than the 2018 figure. External supply of HDPE rose by 37%. Also reduced the export of HDPE.