Imports of polyethylene in Kazakhstan decreased by 9% in the first nine months of the year.

Demand for high density polyethylene (HDPE) has weakened over the reported period, while demand for other PE grades increased significantly, according to MRC.

 

PE imports in Kazakhstan increased to 13,700 tonnes in September, from 11,700 tonnes in August. Total PE imports in the country decreased to 80,300 tonnes in January - September 2014, compared with 88,600 tonnes year on year. Demand for pipe HDPE reduced by 18% over the reported period, while demand for low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) continued to rise. 

 

Structure of PE supply in the country in the reporting period was as follows. September HDPE imports in Kazakhstan grew to 10,600 tonnes, compared with 9,200 tonnes in August, on the back of increase in pipe PE supply from Russian and Asian producers. Total HDPE imports in Kazakhstan decreased to 61,000 tonnes in the first nine months of this year, compared with 74,400 tonnes year on year. 

 

Market participants said the biggest reduction in demand for HDPE occurred for pipe grades. Reduced investment in infrastructure, currency devaluation and the cancellation of preferential treatment of imports of steel pipe HDPE were the main reasons for the decline in demand in this sector.

 

September LDPE imports in the country decreased to 1,750 tonnes, compared with 2,100 tonnes in August. September shipments were under the pressure of a seasonal factor. Total imports of LDPE in January - September 2014 in the country were 15,100 tonnes, compared with 11,300 tonnes year on year. Key suppliers of LDPE in the country were Russian producers with a share in total supplies about 95%.

 

September LLDPE imports in Kazakhstan grew to 1,400 tonnes in September, compared with 400 tonnes in August; some market participants said that HDPE was imported as LLDPE because import duties for HDPE is 6.5% and LLDPE  - 0%. Imports of LLDPE in the country were 4,200 tonnes in the first nine months of the year, up 43% year on year. Key suppliers of PE in the country were producers from Asia and Uzbekistan.