Kazanorgsintez Undertakes Maintenance Shutdown of Polyethylene Plants, Price Hikes Feared

Kazanorgsintez completely off-streams it’s Low Density Polyethylene (LDPE) and High Density Polyethylene (HDPE) plants on September 14, for a scheduled turnaround. The annual production capacities of LDPE and HDPE plants are 225 KT and 540 KT, respectively. The outage is expected to stretch long with an estimated time of completion to be around mid of October.

Kazanorgsintez is Russia’s leading petrochemical giant that contributes 40% of the total domestic Polyethylene production and boasts the highest share of the country’s exports. 

Low Density Polyethylene is a flexible, chemically and electrically resistant thermoplastic polymer composed of ethylene monomeric units. LDPE is predominantly used in the packaging industry to manufacture, bottles, bags, caps and closures, films for food packaging etc. High Density Polyethylene (HDPE) is the dense form of thermoplastic polymer also made up of ethylene monomeric chains. It is a translucent, mouldable and corrosion resistant material that allows its wide usage in the packaging (personal care and food products), piping and plumbing, medical equipment etc.

Russia is a surplus in the production of HDPE and its prices usually remain low owing to the abundant availability. As per ChemAnalayst, the temporary shutdown of the major LDPE and HDPE plants in Russia is expected to cause a commotion in the downstream sectors due to a shortage of polyethyene supplies. The month-long outage is also expected to impact the polyethylene prices which will be coursing in the upward direction. However, a small relief could be seen in the form of the recommencement of Gazprom Neftekhim Salavat’s 120 KTPA HDPE and 45 KTPA LDPE plants in September end after a long period of discontinuity for maintenance purposes. Still, the supply pressure is likely to remain on polyethylene market with zero polyethylene production by a major player like Kazanorgsintez.