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PS demand in Russia on the level of 2006

May 31/2010
MOSCOW (MRC) -- Polystyrene (PS) consumption in Russia in Q1 2010 formed about 81.5 kt while not reaching the volumes of pre-cisis 2008 (almost 10 kt less) according to MRC Annual reports.
PS demand in Russia on the level of 2006

The peak of PS consumption was in 2007, when construction sector was actively developing and there was a great demand for heat-insulation materials. According to MRC Annual reports, by year 2009 results, the consumption formed about 361 kt, 12% exceeding 2006 results. PS demand in 2010 is possibly to reach the level of 2008/ This should be promoted by actively developing energy-saving programs and the development of production sites of international giants like Samsung Electronics, LG, BSH Bosch und Siemens in Russia (see from April 9).


Total PS production in Q1 was on the level of same period 2009 (about 66 kt). As in other polymers markets, PS exports  in 2009 went up by 32%. However, in 2010 exports were seriously reduced  and by Q1 results formed 115 kt. In the figure went down to 1,6 kt, due to reduction of suppliese into China and Turkey.


Still weak demand for polystyrene in the domestic market has held the increase of imports which was given green light by Common Customs Tariff (see from January 15). So, feedstocks from foreign producers in Q1 2010 have certainly increased comparing with same period  in 2009 (47% to 30 kt). However,  it is almost 40% lower than Q4 2009 figures.


More detailed event analysis, and PS market development forecast can be found in MRC Annual reports.

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