Prices of imported polyethylene (PE) are rising in China against the background of limited supplies from Iran, according to ICIS, citing market participants.

Iran, the second largest supplier of polyethylene (PE) to China after Saudi Arabia, is in the process of repairing its ethylene pipeline, which supplies raw materials to several petrochemical plants in the country after the explosion earlier this week.

With the decrease in supply volumes, domestic import prices for polyethylene (PE) in China increased.

On April 9, import prices for high-density polyethylene (LDPE) in eastern China were at the level of CNY8 900-9,000 per tonne, EXWH, which is higher at CNY125 compared to April 5.

Over the same period, import prices of HDPE injection molding in eastern China increased by CNY75 per tonne to CNY8 600-8 650 per tonne, EXWH.

Iranian petrochemical companies Ilam Petrochemical and Kordestan Petrochemical on April 7 closed their PE production since the pipeline exploded in western Kermanshah after three weeks of heavy rainfall and then landslides that led to a breakdown in the West Ethylene Pipeline pipeline that passes through Iran’s western coast.

According to Scan Report Company Market Report, in January the estimated consumption of HDPE in Russia rose to 95.81 thousand tons against 93.42 thousand tons a month earlier. Manufacturers have increased production volumes, export volumes have also increased due to low demand from the domestic market.