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Russian producers need oil and gas prices at the Asian level, as per Sergey Arbuzov

December 09/2011

(MRC) -- Russia"s joining the World Trade Organization (WTO) will bring almost all industries to new competitive level. This was stated by Sergey Arbuzov, General director of Europlastic, during his speech at the Polymers Summit-2011, which was held by MRC with ICIS support.

According to Arbuzov, there will be great changes for producers of plastics as well as converters of polymers. In particular, Russia"s joining WTO and the subsequent cancellation (decrease) of import duties will open borders to foreign products, either feedstock or finished products.

With opening of the borders, all market participants will face tough competition from foreign producers in pricing, product quality, cost of polymers production and products. If the cost of production depends on the major sources of feedstock of natural monopolies, then the competition in polymer processing depends on existing technologies and "know-how.

According to Sergey Arbuzov, to become competitive in price, producers will have to get the prices of oil, gas, electricity and transport at the Asian level, as well as get rid of marginal assets. As per CEO of Europlastic, it refers only to those producers who work with cutting-edge technologies, others will have to work with the subsidized feedstock.

Europlastic works with two operators, who provide warehouse services for the storage of up to 12 thousand tonnes of polymers, as well as with 5 companies, providing freight forwarding services. Companys monthly purchases and sales of polymers makes on average 18-20 thousand tonnes amounting to rouble (Rb)1.3 billion monthly, including VAT 18%.

The main polymers supplied by Europlastic are polystyrene, polypropylene, polyethylene, PVC.

Tags:PVC, PP, PS, PE.
Category:General News
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