Russian producers raised the prices of low-density polyethylene (HDPE) for supplies in September to the domestic market by 3,000-11,000 rubles. per ton in comparison with August. The reason for the increase in prices were the deficit and the devaluation of the ruble, according to the ICIS-MRC Price Review.

Traditionally, since mid-summer, there has been a significant increase in demand in the Russian HDPE market, and, together with them, a deficit. The current July was no exception, in the market there was a lack of supply of pipe polyethylene. In August, consumers of other types of IPA also encountered restrictions on supplies. To compensate for the lack of supply of polyethylene by local producers is not easy, the weakening of the ruble against the dollar made imports quite expensive. Against the background of a lack of supply and devaluation of the ruble, Russian producers raised the prices of PND for deliveries in September to the domestic market by 3,000-11,000 rubles. per ton.

The greatest shortage of supply is noted in the segment of tubular HDPE. Key suppliers – Gazprom Neftekhim Salavat and Kazanorgsintez this month for a number of reasons, will seriously reduce the supply of pipe polyethylene to the domestic market. For September, the Russian black PE100 went up by 10,000 rubles. per ton in comparison with the level of August.

The situation in the film HDPE market is less critical, but there is also a serious price increase for September supplies. And if in past years the lack of Russian material was compensated for by increasing the volume of imports, in the current year the strength of preventive downtime and devaluation of the ruble is limited. At some sellers already in second half of August of the price of film ПНД reached 115 000-118 000 rbl. per ton, including VAT, FCA. For September supplies, Russian producers raised prices by 5,000-11,000 rubles. per ton.

The lowest price growth is observed in the segment of injection molded HDPE, here the increase was only 3 000 rubles. per ton. The demand for polyethylene in the market is low, but the supply is sufficient.