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In 2011 Ukrainian market of PET decreased by 9.6%

February 09/2012

MOSCOW (MRC) -- In 2011, the imports of PET granulate to the Ukrainian market declined by 9.6%. The local market still can not reach pre-crisis figures, due to reduced production of beer, soft drinks and mineral water, according to MRC analysts.

In 2011, the Ukrainian market of PET did not meet the expectations of growth. Last year the market capacity of PET made about 150,000 tonnes. This was by 40% less than record figures in 2007, when the Ukrainian producers of PET preforms processed about 250,000 tonnes of granulate. The consumption of the polymer has remained the third year at the level not higher than in 2005.

The last year reduction of PET-containers consumption resulted from the drop in sales in the sectors of finished products. In Ukraine production of beer decreased significantly. The total production of beer in 2011 made nearly 305 mln. dal., which was by 1.6% less year on year. The production of mineral water decreased by 8% to 124 mln. dal. Consumption of carbonated soft drinks declined by 3% and made 142 mln. dal.

In 2011 Ukrainian market of PET decreased by 9.6%

The producers of juice were affected most of all. The production in this segment dropped by almost 20%. As per MRC analysts, last year there was an increase in milk and sunflower oil production, but due to a small share in the total consumption of PET preforms this hike was not felt.

Overall consumption of granulate was also affected by the reduction of the average weight of PET preforms. According to Retal company, in 2011 the average weight of the preform became lighter by 2% and made about 34.1 grams.
According to some trading companies, the capacity of the spot market also declined. To sell PET at previous years levels became more difficult. In this regard, many trading companies channelled free cash to other markets of polymers and petrochemicals.

The largest supplier of granulate to the Ukrainian market is China. Last year the Chinese producers supplied about 90,000 tonnes of bottle PET, which was equivalent to 60% in total consumption. At the same time the supply of the Korean PET decreased by 16% to about 16,000 tonnes. Some converters said, that next year they would shift to the purchases of the Middle Eastern and African PET. The shorter logistic distribution and acceptable prices in comparison with Asia benefit to this.

Up to date, Ukraine has been a net importer of PET granulate. There is no PET production in Ukraine. In the nearest future, building of new production lines in Ukraine is not expected. The largest consumer of PET in Ukraine is Retal Group.

Author:Anna Larionova
Tags:PET, packaging.
Category:General News
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