In October, contrary to the tradition of previous years, the Russian market of high-density polyethylene (HDPE) observed serious decline in prices. Cheapened the whole range of polyethylene (PE), according to a price review ICIS-MRC.

In previous years, in October was recorded price peak annual IPA, the current year was a rare exception. Moreover, despite the downtime during the month of manufacturers of low-pressure polyethylene, the excess supply in the market is preserved. By the end of the month in many positions HDPE prices fell below the level of 100 thousand. Rub. per ton.

On the 24th of September on preventive maintenance began consistently to stop their power Kazanorgsintez – the largest producer of HDPE in Russia. Consistent resumption PE release only began in mid-October. From October 1st on weekly prophylaxis stopped its production of “Gazprom Salavat neftekhim”. On October 7, due to technical problems stopped operating time Stavrolen IPA. In the second decade of the month reoriented to produce linear polyethylene (LDL) Nizhnekamskneftekhim. Thus, in October we stopped the production of polyethylene HDPE all Russian producers.

Production downtime does not impact on the market balance, many market participants noted that in October included the IPA sufficient inventory, the entire spectrum of polyethylene. The demand for the polymer was low, stocks of raw materials formed a large processors, small production, the bulk of the IPA purchased exclusively under the orders of finished goods.

In the first half of October, the producers still managed to keep the market price at September level, but in the second half month low demand still led to a fall in prices. The lowest price level was recorded in the segment of injection HDPE, this kind of PE to the end of October fell to 94 000-98 500 rub. per ton, including VAT, CPT Moscow. The segments of the blown film and polyethylene prices by the end of the month variation was also significant: 97 500-103 800 rubles. per ton, including VAT, CPT Moscow, and 99 000-101 800 rubles. per ton, including VAT, CPT Moscow, respectively.

In November, some manufacturers are going to go to the substantial increase in exports of HDPE to balance the domestic market. Also Nizhnekamskneftekhim in the last month of autumn will focus on the release of LDL. In all of this, as opposed to these factors will play a low demand, which is traditionally recorded in November.