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PET imports to Russia to fall down for the fourth month

November 11/2011

(MRC) -- Reduction of PET imports to Russia continues for the fourth month. In October, granulates imports fell to 6.7 thousand tons, which was minimum for this year, as per MRC DataScope.

 
The volumes of PET granulate imports have been falling since July. The reason for that is a surplus of the material in the domestic market. Over February-April, converters and trading companies seriously overestimated the potential of expected consumption in summer. The market was entered by the volumes that significantly exceeded the last year figures. On the back of the general economic situation and not hot summer, the sales in the sectors of the finished consumption reduced, in particular, the beer market fell down. In this connection, inventories at the market players stocks keep on influencing the import deliveries as well as sales of the Russian producers within the country. 

PET imports to Russia to fall down


Reduction of materials prices in the Asian markets doesnt help stimulate the demand. In early September, the Asian material was offered, on average, for $1,755/ FOB, while this week PET offer for exports was announced within $1,500/ FOB. Over the two months, PET in the Asia markets cheapened by $250/ton.


Despite moderate granulates prices, the Asian producers of PET say about a weak activity of the Russian market players. This allows to talk about low imports of PET till the year end.

 

Reduction of supplies of imported material (to 6.7 thousand tons in October) is a positive factor for the domestic producers of the granulate. Though on the back of the material oversupply to the market, domestic plants arent able to use current possibilities. As per the market players opinion, this year will finish with significant inventories at stocks. 


The fall is observed in October export deliveries as well. In October PET exports reduced nearly by three times and made 5.3 thousand tons against 16.5 thousand tons in the previous month. Nevertheless, over the ten months, overall exports of PET from Russia and the Western Europe reached 60 thousand tons. Such active covering of export markets was achieved due to the launch of a new PET plant in Kaliningrad with a total capacity of 220 thousand tons.


Perspectives of development of polymer markets, pricing issues and other important aspects will be discussed at The Polymers Summit-2011, which will be held in Moscow on November 30, 2011 at the Ritz Carlton Hotel. The Summit will be organized by MRC with the support of ICIS. The main idea of the Summit is to find a "the golden mean" between producers and converters. When producers receive exactly such margin of production, which helps them to invest in production expansion in order to substitute polymers imports, and the converters receive such price of feedstock that helps them to compete imported finished products. The Summit site gives an access to the live video of the Summit, speakers" presentations, as well as opportunities to ask questions or make appointments to any Summit partcipant.


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