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Ukrainian PP market back to pre-crisis level

June 03/2010
MOSCOW (MRC) Polypropylene consumption in Ukraine in Q1, 2010 moved at about 30 kt, which was 41% more compared to the same period in 2009, and more than in the pre-crisis Q1 of 2008 by 15%, - according to MRCs Monthly Reports.
Ukrainian PP market back to pre-crisis level


The Ukrainian market suffered the most serious losses in Q4 2008 and at the beginning of 2009. Generally, demand had re-established at the pre-crisis level (about 28 kt quarterly, by mid 2009) by the middle of the previous year. It is nice mentioning that the output went up by 7% during Q1 2010, compared to Q1 and Q2 of 2009, and moved at 25 kt.


Over 50% of feedstock processed in Ukraine is imported. According to the results of Q1, they imported 15.5 kt. However, imports have been decreasing over the recent months; according to the results of January-April, imports dropped by 16% as compared with September-December 2009: LyondellBasell cut down supplies by 40% (down to 3 kt), the same did Slovnaft down by 26%, to 2.4 kt. Borealis and Russias Nizhnekamskneftekhim and Stavrolen increased their supplies to the Ukrainian market.


Linos is cutting down its shipments to the foreign markets: during the four months, the company exported about 13 kt of feedstock. During the same period in 2009, the company exported about 20 kt. Shipments to Turkey and Russia were nearly stopped in 2010.


For more detailed information and forecast on the Ukrainian polypropylene market, please, see MRC Annual Reports.

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