12The prices of film polyethylene (PE) dropped significantly in the Russian market of low-pressure polyethylene (HDPE) in mid-May. Also significantly increased the supply of film HDPE in the market, according to the ICIS-MRC Price Review.

According to market participants, since May 15, the market has seen a significant reduction in the cost of film HDPE. Polyethylene has fallen in price by 2 000-5 000 rubles. Per ton in comparison with the first days of May. At the same time, the supply of PE from Russian manufacturers has significantly increased.

One of the factors of the serious reduction in the price of Russian film PE was the significant import of a cheap analogue of producers from Central Asia, in particular, Uzbekistan produced by Uz-Kor Gas Chemical. Since the beginning of last year this polyethylene began to be actively supplied to the Russian market and occupied its niche. In the first days of May, the supply of Uzbek film HDPE reached 87,000-87,500 rubles. Per ton, including VAT, FCA, in the central part of Russia and in the Urals.

The second factor in the cheapening of polyethylene is a separate market participants called a serious increase in supply, in particular, from Nizhnekamskneftekhim. Nizhnekamsk producer in the current month returned to the development of the HDPE, whereas from the middle of January the generation of exclusively linear PE was conducted.

Under the pressure of all these factors, Russian film HDPE fell in price for most suppliers to 88,000-90,500 rubles. Per ton, including VAT, FCA, depending on the region.