MOSCOW (MRC) -- March brought a slight rise in prices of coloured high density polyethylene (HDPE) for Russian polyethylene (PE) pipes producers, whereas prices of natural PE grades remained unchanged, according to ICIS-MRC Price report.

 

Demand for PE from Russian pipes producers grew in March. At the same time, these companies" creditworthyness remained low. This factor was the main reason for the rollover of February prices of natural PE100 by Russian producers. Tight supply of coloured PE100 and strong demand, on the contrary, led to an price increase of Rb1,000/tonne from February.

 

March deals for Russian natural PE100 were done in the range of Rb84,000-86,500/tonne FCA, including VAT. There were mainly offer prices for Gazprom neftekhim Salavat and Nizhnekamskneftekhim"s PE in the market. Kazanorgsintez is virtually shipping all quantities of its natural PE100 to export markets this month.

 

There was a slight shortage of coloured PE100 in the market, which was caused by a major fall in purchasing in foreign markets, as well as by limited shipments from Russian producers, particularly, from Kazanorgsintez (the plant significantly reduced its production of this PE grade because of technical issues over the past two months). In the spot market, prices of Russian coloured PE100 rose to Rb89,500-90,500/tonne FCA, including VAT.

 

Some market participants reported low quantities of European PE100 in the spot market. Coloured PE was offered at an average of Rb106,000/tonne FCA, including VAT.