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LLDPE imports to Russia grew in October

November 17/2011

(MRC) -- In October, total imports of linear polyethylene (LLDPE) to the Russian market exceeded 13,000 tonnes. Year-to-date supply of polyethylene from foreign markets grew by 29% and exceeded 116,500 tonnes, according to MRC DataScope.

The growth of LLDPE imports to the Russian market resulted from the increased demand and limited production capacities of Russian producers. Last month, the total import volume of LLDPE made 13,100 tonnes. The main growth in the deliveries fell at the sectors of films and products made by rotational molding.

In general, over the ten months, the imports of LLDPE to Russia exceeded 116,500 tonnes, that was by 29% more year on year. About 85% of imports of LLDPE is film material. This year, the sector shows a relatively high growth in consumption - 37%. Such a significant increase in imports of film LLDPE was due to the growth of consumption and reduction of PE production in Russia.

The production of stretch films is the most dynamically developing sector. In 2011, the largest investment in the production of stretch films fell at the Russian companies: Regent-Stretch (cast-line of SML Maschinengesellschaft) and KiN (cast-line of Dolchi Extrusion). This year demand for LLDPE for production of volume products by method of rotational molding neraly doubled. Hot sumer last year was one of the reason for increased demand for polyethylene in this sector.

Over the ten months, the total volume of LLDPE imports for the production by rotational molding made about 8,000 tonnes. This year the investment to this sector came from ZTE Akpol (Adygea), Parus Estate (Vladimir), Anion (Moscow) and others.

In November, import of LLDPE to Russia is expected to decline under the pressure of a seasonal factor as well as resumied PE production at Nizhnekamskneftechem. Also it should be noted that some Middle Eastern producers limited export quotations for LLDPE for production of stretch films by injection molding.

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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