Earlier, the Russian Pipeline Industry Development Association had proposed that the government cancel the HDPE import tariff. The government believes that as the domestic demand for oil and natural gas pipelines continues to increase, the consumption of HDPE in Russia will continue to increase. Due to the limited domestic supply, HDPE imports will surely increase significantly. If HDPE import tariffs are not eliminated, the production costs of plastic pipes, especially high-density polyethylene plastic pipes, will increase.

The Ministry of Industry and Trade of Russia (Minpromtor earlier, the Russian Pipeline Industry Development Association had proposed that the government cancel the import tariff of HDPE. The ** will think that as the domestic demand for oil and natural gas pipelines continues to increase, the consumption of HDPE in Russia will increase. As the supply is limited, the import volume of HDPE will increase significantly, and if HDPE import tariffs are not cancelled, the production costs of plastic pipes, especially HDPE plastic pipes, will increase.

The official ministry of the Ministry of Industry and Trade of Russia (Minpromtorg) recently announced that it will temporarily cancel HDPE (high-density polyethylene) import duty duties for a period of nine months.

It is reported that this resolution is the result of compromises between the Russian pipeline industry and the government.

For this proposal, the Russian authorities said that they need to be carefully considered. Because at that time, the two Russian companies Rosnano and Metakley were working on a nanocomposite project (ie, a new type of PE was developed to replace the application of HDPE in large-diameter pipes). In addition, some local HDPE manufacturers insist that in order to protect the interests of ethnic enterprises, the government should impose tariffs on imported HDPE.

In the end, the opposing parties promised to take a step back and, for a period of nine months, temporarily cancel any tariffs on imported HDPE.

For this result, MRC market analyst Sergei Karaichentsev commented: “In the coming months, Borealis and Russian plastic pipe producers will be the biggest winners in the negotiations. In 2013, Russia’s HDPE imports totaled 73,800 tons. A large part comes from Borealis."

In order to balance the interests of all parties and find a reasonable solution, during the period 2013-2014, the Ministry of Industry and Trade of Russia held several symposia, inviting representatives of the Pipeline Industry Development Association, high-density polyethylene plastic pipe manufacturers, and domestic HDPE. Manufacturers, as well as companies such as Rosnano and Metakley, negotiated and listened carefully to their opinions and suggestions. g) The official recently announced that it will temporarily cancel HDPE (high-density polyethylene) import duty duties for a period of 9 months.

It is reported that this resolution is the result of compromises between the Russian pipeline industry and the government.

For this proposal, the Russian authorities said that they need to be carefully considered. Because at that time, the two Russian companies Rosnano and Metakley were working on a nanocomposite project (ie, a new type of PE was developed to replace the application of HDPE in large-diameter pipes). In addition, some local HDPE manufacturers insist that in order to protect the interests of ethnic enterprises, the government should impose tariffs on imported HDPE.

In the end, the opposing parties promised to take a step back and, for a period of nine months, temporarily cancel any tariffs on imported HDPE.

For this result, MRC market analyst Sergei Karaichentsev commented: “In the coming months, Borealis and Russian plastic pipe producers will be the biggest winners in the negotiations. In 2013, Russia’s HDPE imports totaled 73,800 tons. A large part comes from Borealis."

In order to balance the interests of all parties and find a reasonable solution, during the period 2013-2014, the Ministry of Industry and Trade of Russia held several symposia, inviting representatives of the Pipeline Industry Development Association, high-density polyethylene plastic pipe manufacturers, and domestic HDPE. Manufacturers, as well as companies such as Rosnano and Metakley, negotiated and listened carefully to their opinions and suggestions.