During August, there was a small shortage of low-pressure polyethylene (HDPE) in the Russian market. In September, the supply shortage will increase, as well as manufacturers announce further price increases, according to the ICIS-MRC Price Review.
The lack of supply of tubular HDPE on the Russian market began to be felt in the first month of the summer and persisted until August. During the summer months, there was a period of active growth in prices of polyethylene. In September, the situation with the availability of raw materials in the market will deteriorate sharply due to plans of key suppliers of this polyethylene. This week, negotiations began on the September prices of Russian pipe HDPE, market participants said, the price increase for 10,000 rubles is being discussed. per ton.
A sharp deterioration in the situation with the presence of pipe polyethylene on the Russian market in September will be due to several factors. First, the key supplier of black PE100 – Kazanorgsintez since September 25, stops its capacity for almost three-week preventive maintenance.
Secondly, as the customers of the enterprise informed, the key supplier of natural HDPE pipe – Gazprom Neftekhim Salavat – in the last days of August was reoriented to the production of injection molded HDPE, and will return to the production of pipe raw materials only by October. It is also very likely that Stavrolen will not produce pipe polyethylene in September.
The situation can be mitigated at the end of September-October by Nizhnekamskneftekhim, which plans to return to the production of low-pressure polyethylene, including pipe, from September 20.
By the end of the month, the prices of natural HDPE pipe on the Russian market reached the level of 113,000-114,000 rubles. per ton, including VAT, FCA. Prices of black PE100 reached the level of 114 000 rubles. per ton, including VAT, FCA, and above.
Negotiations on September deliveries of black PE100 started this week, negotiators say that suppliers intend to achieve a price increase of 10 thousand rubles. per ton in comparison with the level of August.