With the increasing demand for oil and natural gas pipelines in China, the consumption of HDPE in Russia will show an increasing trend. Due to limited domestic supply, HDPE imports will increase significantly. If HDPE import tariffs are not eliminated, the production costs of plastic pipes, especially high-density polyethylene plastic pipes, will increase. Therefore, the Foundation proposed that the government eliminate import tariffs on high-density polyethylene pipes.
Regarding this proposal, the Russian authorities indicated that they need to be carefully considered. Because the Russian companies Rosnano and Metakley were working on a nanocomposite project (ie, a new type of PE was developed to replace HDPE in large diameter pipes). In addition, some local HDPE producers insist that in order to protect the interests of national enterprises, the government should charge tariffs on imported HDPE.
In the end, the opposing parties promised to take a step back and, within 9 months, temporarily cancel any tariffs on imported HDPE. For this result, MRC market analyst Sergei Karaichentsev commented: “In the next few months, Borealis and Russian plastic pipe producers will be the biggest winners of the negotiations. In 2013, Russia’s total imports of HDPE were 73,800 tons, of which Part of it comes from Borealis."
In order to balance the interests of all parties and find a reasonable solution, during the period of 2013-2014, the Russian Ministry of Industry and Trade held several symposiums, inviting representatives of the Pipeline Industry Development Foundation, high-density polyethylene plastic pipe production enterprises, domestic HDPE production. Businesses and companies such as Metakley negotiated and listened to their opinions and suggestions. The official announced that it will temporarily cancel the HDPE (High Density Polyethylene) import tariffs for a period of nine months.
Jiuzhi Plastics Network
Regarding this proposal, the Russian authorities indicated that they need to be carefully considered. Because the Russian companies Rosnano and Metakley were working on a nanocomposite project (ie, a new type of PE was developed to replace HDPE in large diameter pipes). In addition, some local HDPE producers insist that in order to protect the interests of national enterprises, the government should charge tariffs on imported HDPE.
In the end, the opposing parties promised to take a step back and, within 9 months, temporarily cancel any tariffs on imported HDPE. For this result, MRC market analyst Sergei Karaichentsev commented: “In the next few months, Borealis and Russian plastic pipe producers will be the biggest winners of the negotiations. In 2013, Russia’s total imports of HDPE were 73,800 tons, of which Part of it comes from Borealis."
In order to balance the interests of all parties and find a reasonable solution, during the period of 2013-2014, the Russian Ministry of Industry and Trade held several symposiums, inviting representatives of the Pipeline Industry Development Foundation, high-density polyethylene plastic pipe production enterprises, domestic HDPE production. Businesses and companies such as Metakley negotiated and listened to their opinions and suggestions. The official announced that it will temporarily cancel the HDPE (High Density Polyethylene) import tariffs for a period of nine months.
Jiuzhi Plastics Network
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