The end of the period of preventive downtime of the largest producers and the seasonal decline in demand led to a decrease in prices for low-pressure polyethylene (HDPE) in the second half of October in the Russian market, according to the ICIS-MRC Price Review.
September and the first half of October are traditionally the period of peak HDPE prices on the Russian market. The current year was no exception, the planned preventive downtime of the two largest producers and high demand in the first month of autumn led to a record price increase for the HDPE. In the second half of October, as expected, prices began to gradually roll back.
The largest Russian PND manufacturer, Kazanorgsintez, was the first to stop its scheduled maintenance, the preventive simple started from September 26 and lasted just under a month. From October 1, the second largest producer, Stavrolen, stopped production for 10 days.
In order to compensate for the temporary downtime of the two largest manufacturers, Nizhnekamskneftekhim reoriented to the production of low-pressure polyethylene in the third decade of September. But this factor did not help balance the situation on the market.
By mid-September, prices reached a peak for a number of PND positions. In particular, transactions on the supply of film polyethylene (PE) in some cases reached the level of 118 thousand rubles. per tonne, including VAT, FCA, and above. Black PE100 prices reached 124 thousand rubles. per ton, including VAT, FCA.
The high price level, to which parts of the processors were difficult to adapt, and the seasonal factor in the second half of September began to put pressure on demand. In the first half of October, the slump in demand continued, with some processors deliberately limiting their purchases, waiting for prices to fall with the launch of two plants after preventive downtime.
Last week, the import of HDPE was the most expensive. In particular, the Uzbek film and blown PE fell to 109 000-111 000 rubles. per ton, including VAT, FCA, and 108 000-109 000 rubles. per ton, including VAT, FCA, respectively.
On the part of individual manufacturers, restrictions on the supply of certain types of HDPE remain, but they are not critical for the market.