Russia’s HDPE Production Increases, Prices Fall in May and June
- 01-Jul-2021 6:00 PM
- Journalist: Harold Finch
Russia’s High-density polyethylene (HDPE) production in the first five months of 2021 has been totaled at 831 KT, up by 7% on year-on-year basis. Total HDPE production in Russia in the month of May grew to 177.5 KT due to increase in the output of producers which was around 147 KT a month earlier. Due to abrupt rise in the production, HDPE supplies have increased in the country that has resulted in overall decrease in the prices of the polymer in May and June.
In the month of May, the total production of the company, ZapSibNeftekhim LLC reached 101 KT from 86 KT in the month of April. The production volume of Tobolsk plant hit 473 KT, up by 31% year on year in Jan-May timeframe. Moreover, the total HDPE production of Kazanorgsintez rose by 11 KT from April to May due to increasing output of producers. Furthermore, the total HDPE production of Gazprom neftekhim Salavat rose to 11.4 KT in May compared to 10.2 KT in April.
The price of HDPE had been rising since the beginning of the year but due to less working days in May and increasing imports, there has been marked reduction in the polymer prices. The supply side remained well supported as major producers like Stavrolen and ZapSibNeftekhim ramped up operations to meet the country’s demand despite lower output from the key producer Kazanorgsintez. The fall in prices was also supported by rising imports of polyethylene from the neighboring countries in the month of May. As per market experts, HDPE Film Grade prices are hovering around USD 1680 per tonne in Russia with the offers inclusive of taxes.