Market Dynamics
HDPE imports in Russia decreased by 19% in the first half of 2014
Time: 2014-07-11 Source from: www.mrcplast.com
MOSCOW (MRC) - Although imports of high density polyethylene (HDPE) in Russia increased in the second quarter of 2014, total HDPE imports in the country decreased by 19% in the first six months of the year, compared with the same period in 2013, as per MRC DataScope report.
Following a significant fall in the first quarter of this year, Russia"s HDPE imports have grown since April, driven by the shutdown at Stavrolen and seasonally stronger demand for finished products. Total HDPE imports in Russia were 124,500 tonnes in January - June 2014, compared with 153,600 tonnes year on year. Imports were reduced in all sectors of consumption, the exception was only extrusion blowmoulding PE.
Structure of imports over the reported period was as follows.
June imports of HDPE for extrusion coating of large-diameter pipes increased to 6,100 tonnes, compared with 3,300 tonnes in May. Total imports of HDPE for extrusion coating of large-diameter pipes decreased to 32,600 tonnes in the first six months of the year, down 17% year on year.
June imports of pipe HDPE rose to 8,400 tonnes, compared with 8,100 tonnes in May. Total imports of pipe HDPE in Russia were 32,500 tonnes in the first six months of the year, down 16% year on year. Low demand for PE pipes and high prices in foreign markets were the main reasons for the reduction in pipe HDPE imports, however, imports are expected to increase in July because of tight supply in the domestic market.
June imports of injection moulding HDPE in the country practically remained at the level of May at about 4,000 tonnes. Total imports of injection moulding HDPE in Russia reduced to 23,900 tonnes in the first six months of this year, down 1% year on year. Russia"s imports of injection moulding HDPE are not expected to increase in the coming months because of limited export quotas in foreign markets and high prices, particularly in Uzbekistan.
June imports of film HDPE in Russia reduced to 1,900 tonnes, compared with 2,500 tonnes in May. Total imports of film HDPE on Russia decreased to 10,400 tonnes in January - June this year, down 61% year on year. Imports of film HDPE are expected ti rise in July - September because of strong seasonal demand and upcoming scheduled outages at the Russian plants. Some companies have already said they increased film HDPE purchases several times in foreign markets.
Imports of blowmoulding HDPE grew to 4,800 tonnes in June, compared with 3,400 tonnes in May because of increased supplies from Uzbekistan and Poland. Tight supply of Russian HDPE made many companies to return to the procurement in foreign markets. Total imports of blowmoulding HDPE were 19,200 tonnes in the first six months of the year, compared with 18,100 tonnes year on year. Imports of this material is expected to significantly increase on the back of supplies from the USA and Middle East because of the growing tight supply from Russian producers.
Imports of HDPE in other consumption sectors for the reported period decreased to 5,900 tonnes, compared with 6,300 tonnes year on year.