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The season didn't satisfy expectations of PET producers in Russia

August 18/2011

(MRC) -- This summer season didnt satisfy expectations of the Russian producers of PET.  Over the first half year of 2011 domestic producers of PET failed to suspend imports expansion which grew to 54 KT compared to the same period last year, as per MRC Annual report.

In this season Russian converters tend to cheaper Asian products. Over first two quarters of the year, PET imports exceeded the figures of last two years and made 196 KT.

The season didn

An important factor affecting granulates sales is the absence of expected growth in the sectors of final consumption of PET. Beer market in Russia keeps on stagnating for the third year. At the end of 2010, beer consumption in Russia fell by 6%. Since the beginning of 2011 the same dynamics continued.

According to Rosstat, over the second quarter of the year beer production decreased nearly by 4% compared to the same period last year and made about 300 mln dal.  The major beer producers are forced to increase their presence in such developing sectors  of consumption as kvas, mixes, etc.

Beer market is one of the main segments of bottle Pet consumption. Nearly half of beer produced in Russia is PET packed. In  2010 a share of beer producers in the structure of final consumption of granulates made 30%.

According to MRC data, last year capacity of PET market made about 580 KT. MRC analysts forecast considerable growth of imports as well as domestic production (+220 KT capacities in Kaliningrad).

A more detailed analysis on PET market as well as short- and long-term forecasts of its development is available in MRC Annual report PET in Russia 2011.

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