In 2012 imports of PET to Russia dropped to the lowest level over the past 10 years

MOSCOW (MRC) -- In 2012, the total supplies of PET to the domestic market of Russia slashed by 120,000 tonnes year-on-year and fell to the lowest level over the past 10 years, according to MRC ScanPlast.

2012 turned out to be a rather difficult year for importers of PET to the domestic market of Russia. On an increase of the output by Russian plants, overall imports of PET by domestic companies dropped by 44% (120,000 tonnes) and made about 154,000 tonnes in 2012.

One of the reasons for the fall of purchases in foreign markets is carry-over stocks of PET granulate and the finished goods from 2011. As per some market players' estimates, the total carry-over residues of PET at the market participants' warehouses made from 30,000 to 50,000 tonnes, which resulted in decline in purchases in the first half of the previous year. Also, Russian makers of granulate had a negative impact on import sellers. Programs of Russian plants on imports replacing, increase of production volumes by domestic producers and loyal pricing policy resulted in a growth of purchases in the domestic market.

It is worth noting that unlike the trend of the previous years, last year supplies of Chinese PET prevailed over the general volumes of imports of Korean bottle grades of PET granulate. As it was reported earlier, this gap had been achieved due to the price difference of Chinese and Korean PET, which sometimes reached USD50/tonne.

For the said period, the total amount of Korean PET that arrived to the domestic market made about 61,000 tonnes, which is more than twice lower than in 2011. The volume of purchases of Chinese PET fell by 32% to almost 107,000 tonnes.

Among Asian producers, Korean KP Chemical accounted for the largest drop in sales in Russia in absolute terms. Thus, last year the sales volumes of domestic makers in Russia fell by 32,000 tonnes, which is more than twice lower than in 2011. Supplies of the Chinese company Jiangsu Sanfangxiang decreased by 47% (about 25,000 tonnes).

SK Chemicals also reported substantial losses of the market share. Thus, last year the volume of shipments of this producer to Russia fell by more than 70% (about 21,000 tonnes).

MRC

MOSCOW (MRC) -- In 2012, the production volume of PVC in Russia grew by 7% year-on-year and exceeded 616,000 tonnes. SayanskKhimPlast and Kaustik (Sterlitamak) ensured the growth of the output, according to MRC ScanPlast.

In December, Russian makers produced 58,500 tonnes of unblended polyvinylchloride (suspension and emulsion PVC). In 2012, the total PVC output by Russian makers made over 616,000 tonnes, up 7% year-on-year. SayanskKhimPlast and Kaustik (Sterlitamak), the market leaders, accounted for the main increase in the production volumes. The petrochemical majors increased their output almost by 40,000 tonnes due to expanding capacities.

In 2012, the major Russian producer of suspension PVC SayanskKhimPlast raised its output by 14,000 tonnes year-on-year to 273,000 tonnes. The current plans of the company for 2013 are to increase production of PVC to 280,000 tonnes and in 2014 - to raise the output to 350,000-370,000 tonnes. Sayanskkhimplast strategic development program involves the construction of another pyrolysis oven for the production of vinyl chloride monomer (VCM) with bringing the total production capacity of the monomer up to 400,000 tonnes per year, and by 2020 the production of PVC is to be increased up to 600,000 tonnes.

Kaustik (Sterlitamak), the second largest producer of PVC in Russia, also had quite a good year. In 2012, due to a series of operations the company increased its annual capacity up to 220,000 tonnes. The final output of suspension PVC rose up to 200,000 tonnes, while in 2011 this index made only about 174,000 tonnes. In the future, the Bashkir company does not exclude the expansion of production capacity of PVC up to 600,000 tonnes per year, given an increase in ethylene capacity by the key Russian producers.

Last year, Kaustik (Volgograd) reduced its production of suspension PVC by 4% year-on-year to about 87,000 tonnes. The decline in production was due to technical issues after a scheduled outage for maintenance in April-May, 2012. The production capacity of the plant allows to produce 90,000 tonnes of PVC per year, the company has not stated its future plans on capacity expansion.

Last year, SIBUR-Neftekhim (Sibur group) increased its PVC production by 17% year-on-year to nearly 35,000 tonnes. In July 2012, Sibur announced its intention to gradually shut all its chlorine units of the former plant "Caprolactam" belonging to its subsidiary Sibur-Neftekhim until the spring of 2013.

Last year, Russian suspension PVC producers managed to increase its output to 595,000 tonnes, which is by 41,000 tonnes more than in 2011.

The only operating producer of emulsion PVC in Russia Khimprom (Volgograd) increased its production volumes in December to almost 2,000 tonnes. Last year, the company produced about 21,000 tonnes of emulsion PVC, down 5% year-on-year.

MRC

MOSCOW (MRC) -- Imports of general purpose polystyrene (GPPS) to the Russian market grew by 58% in 2012 and made almost 65,000 tonnes of the material, according to MRC DataScope.
Styrolution material accounts for the bulk of shipments, namely 57,4% of the total GPPS imports or about 38,000 tonnes in volume terms.

Styrolution was founded in late 2011 as a result of a merger of styrenic assets (with the exception of EPS) of BASF (50%) and INEOS (50%).

In 2012, Styrolution GPPS supplies to the Russian market rose by 167% compared to the total shipments of BASF and INEOS.

Supplies of the Taiwanese maker Taita Chemical made almost 6,000 tonnes of GPPS, which is 8,5% of imports. The import of the material increased by 22% year-on-year.

In 2012, the Ukrainian PS producer concern Stirol (Gorlovka) increased supply of GPPS to the Russian market by 3,4 times year-on-year. The import volumes of Gorlovka material made about 4,000 tonnes in 2012. The growth of imports of the Ukrainian material was due to the increase in demand from converters of the Southern regions of Russia.

MRC

MOSCOW (MRC) - In 2012, the production of high-density polyethylene (HDPE) in Russia decreased by 13% compared with 2011 and amounted to 733,000 tonnes. Nizhnekamskneftekhim and Kazanorgsintez could only partially compensate the long-time stoppage of Stavrolen, according to MRC ScanPlast.

In December 2012, Russian makers increased capacity utilization and produced 86,000 tonnes of HDPE. In 2012 the total volume of Russian HDPE made 732,800 tonnes, down 13% year on year. Long time outage of Stavrolen (Lukoil Group) after the accident at the gas distribution unit was partially offset by Nizhnekamskneftekhim and Kazanorgsintez, Tatar makers of polyethylene. In total, these companies in 2012 increased the output of high-density polyethylene by 114,000 tonnes.

Kazanorgsintez, Russia's largest producer of HDPE, in 2012 increased its output to 443,000 tonnes, up 84,000 tonnes year on year. Since the launch of HDPE capacities (200,000 tonnes) in 1983, up to now the company increased its capacity to 510,000 tonnes. The tightened supply of ethylene limits Kazanorgsintez's capacities of HDPE by 100%.

Following the incindent in December 2011, Stavrolen managed to resume its production of HDPE only in the beginning of October. By November the company reached 100% of capacity utilization. In 2012 Stavrolen's production of HDPE made 73,400 tonnes, while in 2011 the volume of production was about 292,000 tonnes.

Nizhnekamskneftekhim last year focused on the production of high-density polyethylene. Its production volume of HDPE in 2012 exceeded 171,000 tonnes. Its current capacity of PE production makes 220,000 tonne/year, and over the next five years, the company plans to increase its production capacity of ethylene from 600,000 tonnes to 1 mln tonnes per year and to launch 600,000 tonnes/year PE production.

Gazprom neftekhim Salavat due to long time turnaround in July-August 2012 reduced the output of high-density polyethylene by 7,000 tonnes. The total output in 2012 exceeded 48,000 tonnes.


MRC

MOSCOW (MRC) - In December 2012, imports of polypropylene (PP) in Ukraine rose to 11,600 tonnes. In 2012 the imports of PP to the Ukrainian market increased by 41% to about 113,000 tonnes, according to MRC DataScope.

December growth in external supplies resulted from the desire of some market participants to replenish inventories ahead of price growth. The stoppage of LINIK (TNK-BP), the only Ukrainian producer of polypropylene, in April 2012 increased the dependence of the imports.

Due to economical inexpediency the only producer of polypropylene in Ukraine - Linik in April 2012 completely shut its capacities. Statements regarding stoppage of LINIK from company management were made in the beginning of 2011, but the real stoppage of processing took place in March 2012, the production of polypropylene was stopped a month later.

This year LINIK is to change the owner, and according to unofficial information, the new owner will resume the polypropylene production in September. The capacities of LINIK makes 90,000 tonnes of homopolymer of propylene (PP-homo) a year.

In May 2012, due to the stoppage of LINIK , the imports of PP-homo to the Ukrainian market began to grow rapidly. Last December, the external supplies of homopolymer of propylene hit a record - 9, 000 tonnes. Such significant growth in imports amid low seasonal demand was driven by the desire of some players to replenish their inventories in anticipation of price increases.

Asian and Middle Eastern PP provided the main increase in December imports. In general, in 2012 the total volume of import PP-homo to Ukraine amounted to about 80,000 tonnes, up 58% compared to the same period of 2011. External supplies of block copolymers and statistical copolymers of propylene last year amounted to 19,400 tonnes and 9,300 tonnes respectively, up by 9% and 22% from 2011.


MRC