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Re-export of polyethylene from Asia grew in Russia

Low demand for polyethylene in China and efficient supplies form external suppliers resulted in a considerable surplus of offers. This made many companies re-export PE. At the end of March the first offers of PE re-export from Asia appeared in some CIS countries. A month later a number of both offers and bargains for PE supply grew.

Over the last week of April a level of prices for re-exported PE was within USD 1.480 – 1.520/mt, FOB, for HDPE, and USD 1.490 – 1.520/mt, FOB, for butane types of LLDPE. Also there are many offers for LDPE supply but the prices are high: USD 1.840 – 1.870/mt, FOB.

Some Russian and Ukrainian companies have already contracted test volumes for late May-early June supplies. The Russian market because of 10% import tax is now interested only in offers for LLDPE supplies but strengthening of ruble against dollar soon can make HDPE supplies beneficial as well.

The Ukrainian market because of euro strengthening against dollar and a considerably high level of export prices for the Russian PE is interested in offers for HDPE and LLDPE supplies.

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