Tight supply of HDPE in the Russian market, driven by several factors (Stavrolen"s shutdown, seasonal improvement in demand and reduced imports), continued to bullish prices. The most significant growth in prices was seen in film HDPE market, with prices soared to Rb80,000/tonne in the end of May. 

 

In the last week of May price offers for film HDPE grew to Rb78,000-80,000/tonne FCA, including VAT, whereas at the beginning of the month low end of the price was at Rb73,000/tonne. Only Kazanorgsintez and Nizhnekamskneftekhim offered their film HDPE in the market, as there was no imported material available in the market; there was information about small volumes of Middle Eastern HDPE offered.

 

The second largest consumption sector is pipe HDPE. Supply of Russian black PE100 was tight in the market in May, however, low solvent demand offset the shortage. As a consequence, May prices remained steady in the range Rb76,500-77,500/tonne FCA, including VAT.

 

Deals for imported PE 100 in the second half of May were done in the range of Rb82,000-82,500/tonne CPT Moscow, including VAT, with a deferred payment of 30 days. Supply of blow moulding and injection moulding HDPE was sufficient in May. 

 

However, the upcoming maintenance works at "Gazprom neftekhim Salavat"  in July and other producers resulted in price rise. Price offers for blow moulding HDPE in the late May were in the range Rb75,000-77,000/tonne FCA, including VAT. Prices for injection moulding PE were on average down by Rb1,000/tonne.