MOSCOW (MRC) -- MRC news digest as of 15 April, 2013.
1. The cost of polystyrene in Russia remains unchanged.
Russian producers and traders have left polystyrene prices for April at the March level. This week market participants were focused on the price formation of Russian PS for April. As per MRC analysts, the price of Russian polystyrene for the first half of April was left at the rollover from March. Nizhnekamskneftekhim's price remains at Rb75,000-79,000/tonne for general purpose polystyrene (GPPS) and Rb77,000-82,000/tonne, CPT Moscow, for high impact polystyrene (HIPS). Gazprom neftekhim Salavat's price of polystyrene also unchanged in April. Traders keep prices at Rb68,500-72,000/tonne for GPPS and Rb75,000-78,000/tonne for a natural HIPS. At the same time, according to a trader, the price for natural HIPS can be reduced in the second half of April.
2. Imports of suspension PVC to Russia rose to a record 58,000 tonnes in March.
In spite of low demand for suspension PVC (SPVC) over the last three months, imports of the material to the Russian market broke a ten-year record in March and reached 58,000 tonnes. The last record shipment of about 57,000 tonnes of SPVC was registered in May 2011. American and Chinese producers accounted for the largest increase in foreign supplies of the resin. Though North American makers are raising their SPVC prices and limiting their exports, it did not affect SPVC imports to Russia. Last month, the total supply volume of North American SPVC to Russia amounted to more than 25,000 tonnes, up 52% from February. Similar import volumes of about 25,000 tonnes from the United States were registered in October 2012. Import of the Chinese acetylene PVC rose to 28,700 tonnes, which is an absolute record in the history of PVC imports from China. Besides, last month suspension PVC supplies from Europe and South Korea also grew, but the share of supply of these producers in the total imports amounted to only about 10%. Overall, over the first three months of the year, the total import volume of SPVC to Russia made 118,600 tonnes, up 42% year-on-year.
3. Imports of polypropylene to Russia fell by 9% in March.
In March, imports of polypropylene to Russia dropped by 9% from February. Last month imports of polypropylene (PP) amounted to 22,300 tonnes. PP from Turkmenistan accounted for the decline in imports, while imports from other regions increased. Despite low seasonal demand, high capacity utilization of the existing plants and the start-up of a new unit in Omsk (Polyom), imports of polypropylene to Russia are still at a high level. In February-March, 2012, PP imports to Russia totalled 16,000 and 16,800 tonnes, respectively. Last month, imports of propylene homopolymer (homopolymer PP) decreased to 11,200 tonnes, while in February, they made 13,300 tonnes. The decline in imports of homopolymer PP was due to the reduction of PP supplies from Turkmenistan, whereas the supply volumes from other regions virtually remained at the level of February. In March, imports of impact copolymers of propylene (PP-impact) rose by 5% from February to 4,900 tonnes. Injection moulding grades of PP-impact accounted for the main growth in imports. Imports of random copolymer of propylene (PP-random) rose to 3,100 tonnes last month. Overall, in the first quarter of the year, the total import volume of polypropylene to Russia made 60,400 tonnes, up 16% year-on-year.
4. Imports of PET to Russia slashed by 8% in March.
In March, imports of PET to Russia decreased by 8% from February. In absolute terms, supplies of imported PET to Russia fell by 1,300 tonnes last month to 14,700 tonnes. However, if compared to March 2012, they increased by 1,000 tonnes. Import purchases of PET in Asia decreased due to an on-going decline in prices and, as a result, market participants' expectations of lower quotations. In the supply structure, the share of recycled PET flex made about 900 tonnes, whereas imports of PET granulate amounted to 13,800 tonnes in March. Overall, in January-March, imports of PET to the Russian domestic market made about 40,000 tonnes. If compared to the same period last year, imports of PET dropped by 4%. Total shipments of imported PET to Russia amounted to 41,600 tonnes over the same period last year.
5. March imports of PE to Russia grew by 17%.
Russia's total imports of polyethylene (PE) in March grew by 17% from February and reached about 66,000 tonnes. Although the season has not started yet, Russian converters have been increasing purchases of polyethylene (PE) abroad since the early year. Thus, the total imports of PE in Q1 2013 made 175,000 tonnes, up 16% year on year. The main increase was seen in the import of high density polyethylene (HDPE) and linear polyethylene (LLDPE). In March, imports of HDPE increased by 21% compared to February and amounted to about 30,500 tonnes. Purchases of PE increased in all sectors of consumption, the only exception made sector of the cable insulation. The largest increase in HDPE imports showed blow moulding polyethylene - 81%. The imports of pipe of polyethylene increased by 26% and was close to 9,000 tonnes. The three months' imports of HDPE made about 80,000 tonnes, which is equal to the same period a year ago. March imports of LLDPE rose to 19,700 tonnes, up 19% from February figure. In January - March 2013, the external supplies of LLDPE increased to 50,500 tonnes, which is 44% higher than a year ago. Imports of low-density polyethylene (LDPE) in March amounted to about 10,500 tonnes, including supplies through Belarus, which is not much more than the February figure - 10,000 tonnes. In January - March this year, the external supply of LDPE to Russia reached 30,000 tonnes, up 7% compared to the same period a year ago. Imports of copolymers of ethylene and other compositions of polyethylene in March of this year made 5,300 tonnes.
6. Russian DOP prices continue to grow.
Prices of dioctyl phthalate plasticizer (DOP) in Russia continue to grow on the back of the seasonal demand and oncoming stop on the turnaround of Gazprom neftekhim Salavat. Iin early April pPrice of Russian plasticizer DOP on growing feedstock costs, particularly diethylenglycol (DEG), was increased on average by Rb3,000/tonne the Rb70,000-72,000/tonne, including VAT, delivery. By mid-April due to the limited supply of DOP to the market its price rose to Rb70,000-74,500/tonne, including VAT, delivery. In addition, Gazprom neftekhim Salavat, Russia's largest producer of plasticizer DOP, is going to stop its capacities on a month-long turnaround from 20, April. Some market participants expect the prices of plasticizer DOP to grow further until May on rising feedstock costs.
MRC