High seasonal demand and long-term restrictions on the production of pipe low-pressure polyethylene (HDPE) from key manufacturers led to a lack of supply in the second half of August. Some sellers have raised prices, according to the ICIS-MRC Price Review.
For a number of reasons, two Russian producers limited the production of natural pipe HDPE in the summer months, while the demand for polyethylene (PE) is at a good level due to the seasonal factor. Against this background, by the end of this month, the supply of material on the market had noticeably decreased, and some sellers raised prices. The situation is aggravated by the fact that there are long-term preventive downtime ahead of two of the largest HDPE manufacturers in Russia – Stavrolen and Kazanorgsintez.
The key supplier of natural pipe HDPE on the Russian market is Gazprom Neftekhim Salavat, which stopped its facilities in July for a monthly preventive repair. With a great delay, the Bashkir enterprise left the planned repair and intends to focus on the production of injection molding PE from mid-September.
After a long absence of operating time, Stavrolen in the second half of June resumed production of natural pipe HDPE, however, due to technical problems, the production of this PE was discontinued from July 12th. The production of new batches of material is planned in the second half of October after preventive repair.
Kazanorgsintez also in July – August reduced the operating time of natural pipe HDPE in favor of black PE100, and from September 14, the Kazan manufacturer intends to start a sequential shutdown of capacities for an almost 30-day preventive repair.
The lack of natural pipe HDPE in the second half of August did not cause a stir in the market; for the most part, processors managed to close their needs for raw materials. Partially, consumers were reoriented to the purchase of HDPE brands 273-83 and other similar analogues in characteristics. However, price increases could not be avoided.
Small volumes of Salavat natural pipe HDPE last week sold at 106,000-108,000 rubles. per ton, including VAT, CPT Moscow. For individual sellers, offers for the Kazan counterpart reached the level of 110,500 rubles. per ton, including VAT, CPT Moscow, but no deals were reported at such prices.