August LLDPE imports to the Russian market dropped to 15,600 tonnes from 19,300 tonnes in July. The main reason for last month"s lower imports is limited export quotas of the Middle Eastern producers. 

 

The overall imports of this PE grade to Russia rose from January to August 2014 to 134,400 tonnes from 132,000 tonnes a year earlier. Local producers of large items by rotational moulding and producers of cables and wires significantly increased their imports this year, whereas demand from films producers grew minimally. 

 

The supply structure by the sectors of consumption looks the following way over the stated period. 

 

Last month"s imports of film grade LLDPE dropped to 13,800 tonnes (16,500 tonnes in July) because of Middle Eastern producers" limited export quotas for PE for the production of irrigated stretch films. The overall film grade LDPE imports to Russia totalled 118,400 tonnes over the first eight months of 2014, up by only 1% year on year.

 

August imports of LLDPE for rotational moulding were about 1,000 tonnes (1,300 tonnes in July). PE shipments to this processing sector  increased by 26% over the said period and totalled about 8,400 tonnes. Two Asian producers - Lotte Chemical and SCG Chemicals - remained the key suppliers to this market.

 

LLDPE imports to other sectors of consumption (lamination, cable extrusion, compounding, pipe extrusion, etc.) fell from January to August 2014 to 7,600 tonnes versus 8,400 tonnes a year earlier. 

 

LLDPE imports to Russia are expected to go down further in September, which will still be caused by limited export quotas of Middle East producers, particularly, for PE for the production of irrigated stretch films, as well as by seasonally weaker demand in other sectors of consumption.