Ukrainian converters aren't ready to accept dynamical growth of HDPE prices
From the year start prices for film HDPE in Ukraine grew, on average, by USD 250/mt, converters aren’t able to transfer such a considerable growth to the finished goods.
Such a record growth of prices for HDPE was stipulated, first of all, by growing prices for PE in Europe. At that, gain in price by EUR 60-80/mt is forecasted. Many Ukrainian converters aren’t able to follow such a dynamical growth of prices for raw materials and are afraid of flow of cheaper products form China.
Domestic prices for HDPE in China have remained without considerable changes since February and are within the range of USD 1.680 – 1.740/mt, FCA, including VAT. At the same time in the Ukrainian market by mid-March film HDPE had grown to the level of USD 2.170 – 2.220/mt, FCA, including VAT.
Some Ukrainian converters have already started to consider the possibility of substitution of their own packaging production with purchased finished goods in China. Preliminarily, the price difference now makes 30%. According to market players, mass imports of all types of packaging from China isn’t expected, first of all, because of long-term logistics and diversity of products. But in case of simple packaging for retail sales, import supplies form China may grow considerably.