MOSCOW (MRC) -- Imports of expandable polystyrene (EPS) into the Russian market fell in 2013 by 16% from 2012 and totalled 71,700 tonnes. Russian companies have been reducing purchasing in foreign markets for the third consecutive year, according to MRC Annual report.
MRC analyst Igor Grishchenko said there is a clear picture of import displacement in the production of polystyrene (PS) and styrene plastics in Russia on the back of increased domestic production capacities. The EPS market is no expection.
SIBUR-Khimprom and Angarsk polymer plant increased production last year while Plastik (Uzlovaya, Tula region) reduced its output (EPS production at the plant fell by 14% in from January to November 2013, which also might be a cause for the plant sale).
The construction sector showed a good growth, which contributed to increased consumption of EPSV-S and increased domestic production. Displacing imports, SIBUR has been strengthening its presence in foreign markets by raising export sales.
China is the largest supplier of imported EPS to the Russian market and accounts for more than 45% of the total imports. Chinese EPS imports totalled 32,500 tonnes in 2013 (imports from China fell by 18% last year). Loyal is the largest supplier of Chinese EPS to Russia. The plant's total imports were 25,600 tonnes, with its most popular grades being F-MS (11,600 tonnes) and F-SA (10,200 tonnes). However, China was not always a leader, Korean EPS producers accounted for the largest share in imports two years ago. At present, Korea is the second largest supplier of this polymer with 19,800 tonnes of imports in 2013.
Displacement of imports has also affected European producers. German BASF, Finnish Styrochem, Ineos Nova and others reduced exports to Russia. Only some European manufacturers (Polimeri Europa, Dwory, Styron) managed to slightly raise exports to Russia.
MRC