Raw materials for the production of packages rose in Russia by 40% and became a deficit

Amid currency fluctuations to the raw material suppliers more profitable to export their products, and manufacturers of plastic products are forced to stop production.

The last six months of HDPE in granules, which produces packaging, garbage bags and shopping bags-t-shirts, cost about 89-95 rubles per kg, but in July the price had jumped to 130 rbl. for kg, as a result, the share of raw materials in the cost of finished products has reached 100% instead of the usual 50-70%.

Manufacturers package called the main cause of the crisis that in connection with the growth rate of foreign currency to the Russian suppliers of raw materials is much more profitable to export HDPE, than to provide them the Russian market.

When jumped, the dollar and the Euro, producers of raw materials began to work actively for export, supplying HDPE in Latvia, Poland, Estonia and other countries, forgetting the domestic market, convinced the General Director of LLC “* EUROPLAST” Lyudmila Mitina.

In Russia produce HDPE Kazanorgsintez, Nizhnekamskneftekhim (group of companies “TAIF”) and Stavrolen (part of LUKOIL). The plant in Nizhnekamsk is currently on the prevention and Stavrolen resumed production 1.5 months ago after what happened in 2013 explosion. It is Stavrolen now offers the lowest price on the market – 91 rubles. per kg.

The plant in Nizhnekamsk to comment on the situation with rising prices for raw materials declined. The press service of Kazanorgsintez operational review to provide also failed, citing a lack of leadership.

However, consumers of raw materials readily comment on the situation. So, development Director of LLC “Levpak” Natalia Gavrilova said: “given the new realities of the Kazan PND manufacturers most of its raw materials export, the plant in Nizhnekamsk is on prevention, with raw materials from the warehouses of both plants proposed for 110 rubles. per kg. of Raw materials or simply don’t have, or sell it at exorbitant prices”.

According to the Price review ICIS-MRC Russian market is still scarce in many positions polyethylene. Maintained a record level of prices and the end of the month the market situation is unlikely to change. Some companies refuse to buy raw materials at such high prices. However, it is probable that in August PND on the market there may be some improvement