Russia: record-breaking polyethylene imports in October

In spite of the expected decrease in polyethylene demand in the Russian market, polyethylene imports moved at a record level in October.

According to Market Report Company’s data, PE imports moved at 40.2 kt in October, which was by about 50% more compared to September. At the same time, imports decreased 10% compared to October last year. In October, about 70% of imported LDPE belonged to special brands (Borealis and Ineos), intended for cable insulation and extrusion coating.

Apart from the injection molding sector, all other sectors demonstrated increasing HDPE imports in October. The biggest increase was recorded in the sector of extrusion coating intended for big-diameter pipes. Borealis is the traditional leader there (imports went up to 4 kt in October); furthermore, Total Petrochemical, SK Corporation and Korea Petrochemical are actively working in the market.
Supply of HDPE blown grade nearly doubled compared to September. Kazanorgsyntez resumed production of the 276th HDPE grade only in mid-October, while output volumes in Budennovsk are not enough to meet market demand. Imports of HDPE blown grade exceeded 2.6 kt in October; at the same time, about 1.9 kt were feedstock produced by Shurtan Gas-Chemical Plant.

In October, supply of HDPE film grade increased by 67% compared to September, and moved at 2.5 kt. There was no lack of material in the HDPE film grade market over the course of the first half of the month; however, the situation became complicated in the second half of the month. Due to problems with rolling stock in Budennovsk, shipments of Stavrolen’s feedstock were limited; launch of the 293-285Д HDPE film brand in Kazan was postponed. The structure of imports was quite predictable (supplies from Asia); the only exception was material produced by Chemopetrol and Basell Polyolefins. Overall imports of HDPE pipe grade moved at 11.9 kt in October. Imports of Korea Petrochemical’s material went up to 6.6 kt; imports of Daelim’s feedstock nearly doubled. In November, pipe grade imports are expected to decrease; prices will continue to go down as well. In October, LLDPE imports increased 65% compared to September. The LLDPE unit in Kazan was suspended in September. Production was resumed only at the beginning of November. Meanwhile, lack of domestic LLDPE was compensated by increasing imports of Asian feedstock which, in its turn, was going down in price. Medium Russian companies switched to butene-based LLDPE produced by Korea’s Hyundai Petrochemical (imports increased up to 1.2 kt) and LG (500 mt). Meanwhile, the leading positions are held by such European producers as Dow (2.7 kt), Exxon Mobil (1.2 kt) and Borealis (700 mt).