PC exports from Russia fell by 3% in Q1 2014

MOSCOW (MRC) - Export volumes of Russian polycarbonate (PC) to foreign markets decreased to 4,000 tonnes, down 3% compared to the same period last year, according to MRC DataScope report.

The main destination for exports of Russian PC was China. Total exports of Russian PC to China was about 3,000 tonnes in Q1 2014, which made 75% of total exports volumes over the reported period.
Exports of Russian PC to China in Q1 2014 decreased by 19%, compared with the same period last year. The most popular exported brand to China over the reported period was injection moulding PC.

Russian PC is popular in the Chinese market because of good quality in the first place, and cheaper price. Since the beginning of this year, the price range for injection moulding PC in the main ports of China has kept at USD2,430-2,570/tonne.

The main buyer of Russian polycarbonate in China is a Swiss company Ameropa. The only major exporter of Russian PC is Kazanorgsintez.
MRC

HDPE imports to Russia fell by 31% in Q1 2014

MOSCOW (MRC) -- Imports of high density polyethylene (HDPE) to Russia fell by 31% over the first three months of 2014. Weak demand and higher prices were the main reasons for reduced imports polyethylene (PE), according to MRC DataScope.


March HDPE imports to Russia dropped to 15,000 tonnes (18,400 tonnes in February). Thus, the overall HDPE imports totalled 52,900 tonnes in the first quarter of 2014, while this figure was 76,200 tonnes over the same period of 2013. The main reasons for reduced imports were weak demand from local converters and higher prices of imported material (the rouble depreciated by 11% in March). The unscheduled outage at Stavrolen did not affect import shipments.

The imports structure by consumption sectors over the stated period looks the following way.

Imports of HDPE for extrusion coating of large-diameter steel pipes slumped to 2,700 tonnes last month (8,000 tonnes in February). Imports of these PE grades to Russia dropped over the first three months of 2014 by 4% year on year and totalled about 17,900 tonnes.

March imports of pipe grade PE were 3,200 tonnes (3,000 tonnes in February). The overall pipe grade HDPE imports totalled from January to March 10,200 tonnes, down by twofold compared with the first quarter of 2013.

Injection moulding HDPE was the only PE grade, which imports increased. Thus, March imports reached 3,200 tonnes. Imports of injection moulding PE grew in the first quarter of the year to 10,800 tonnes from 10,600 tonnes a year earlier.


Last month's imports of film grade and blow moulding HDPE were 2,000 tonnes (1,500 tonnes in February) and 3,000 tonnes (1,600 tonnes in February), respectively. The overall imports of these HDPE grades slumped over the stated period by 65% and 33% year on year and reached 4,800 tonnes and 6,500 tonnes, respectively.

The overall March imports of HDPE for other consumption sectors totalled about 1,000 tonnes. This figure over the first three months of 2014 was about 2,700 tonnes, while it was 3,100 tonnes a year earlier.

HDPE imports are still expected to increase in April and May. Seasonal stronger demand and an outage at Stavrolen, the second-largest producer in Russia, will be the main reasons for the growth. As reported earlier, Russian companies were actively purchasing HDPE in March in Uzbekistan, some market participants reported an increase in purchasing of pipe grade PE in Asia.

MRC

Russian PC market decreased by 9% in Q1 2014

MOSCOW (MRC) - Russian market of polycarbonate (PC) decreased to 23,600 tonnes, down 9% in the first quarter of this year, compared with the same period in 2013, according to MRC ScanPlast.

The main reason for the decrease in PC market volumes were weaker imports because of rouble devaluation and rising domestic prices. Many consumers have switched the buying of PC from Kazanorgsintez. Especially it affected the extrusion sector with seasonally growing demand.
Market participants said the peak of the demand will come on the eve of the May holidays.

Russia's market of extrusion grade PC was more than 19,000 tonnes in Q1 20014, down 11% against the same period last year. Average monthly processing volumes of extrusion grade PC in Russia are 5,000-8,000/tonnes this raw material, depending on the season. The first seasonal surge in demand is in March-May, and the second - at the beginning of autumn. The largest converters of extrusion PC in Russia are producers of cellular PC sheets, namely Kronos Polyalt and SafPlast.

Consumption in the injection moulding sector is steady as it is the least affected by seasonal factor. Market volume in this sector in the first quarter of this year increased to 5,000 tonnes, up 6% compared to the same period last year. Russia's monthly demand for the injection moulding PC is about 1,500 tonnes, where imports volumes make 1,000 tonnes. The remaining volumes are provided Russian producers.

Key consumers in this segment are producers of household appliances and automotive components (Samsung Electronics Rus Kaluga, LG Electronics Rus, Beko, Automotive Lighting). Blow moulding sector in Russia completely depends on imports, and in Q1 20014 decreased 674 tonnes, down 20% compared with the same period last year, on the back of price rise of Asian material and rouble devaluation.

Russia's monthly consumption of blow moulding PC is 250 tonnes. Main consumers are the producers of water packaging of more than 10 litres.
Total Russia's imports of PC in the first quarter of this year exceeded 10,000 tonnes, and PC exports was almost 4,000 tonnes over the reported period.


MRC

Nizhnekamskneftekhim launched the fourth PS unit

MOSCOW (МRC) -- Nizhnekamskneftehim ( NKNKh ), Russia's largest producer of plastics and synthetic rubbers , on 14 April launched its 50,000 tonne/year fourth line of polystyrene (PS) production, the company said.

The new line will produce 13 grades of PS, seven of them are of general grades, six other additional grades intended for processing by injection moulding, extrusion and expanding. Production will be based on Japanese Toyo-Mitsui technology. The new line will allow NKNKh to increase PS production and expand the product line. Construction of the fourth line was launched in the first quarter of 2013, pre-commissioning works began in December 2013.


NKNKh launched its 50,000 tonne/year first PS line in July 2003. The second line of the same capacity was launched in July 2005. Third PS line of 50,000 tonne/year capacity started in 2008. The producer launched production of acrylonitrile -butadiene-styrene ( ABS) plastics with the capacity of 60,000 tonnes/year in 2013.

OAO Nizhnekamskneftekhim – one of the largest petrochemical companies in Europe, the leader in the production of synthetic rubbers and plastics in the Russian Federation. The Company is part of TAIF Group. The main production facilities are located in the city of Nizhnekamsk, Republic of Tatarstan. The company was founded in 1967.
MRC

Total fails to renew Polish shale licence - ministry

MOSCOW (MRC) -- France's Total, Europe’s third-largest oil company, has not renewed its only shale gas exploration licence in Poland, reported Reuters with reference to a statement of a spokesman for Poland's environment ministry, in the latest decision from an oil major rethinking shale plans in the country.

"Total had an exploration licence in eastern Poland, near Chelm, which expired on April 1," said Pawel Mikusek, a ministry spokesman. "They didn't renew it."

Poland launched a major push into shale three years ago when Prime Minister Donald Tusk announced the country would seek to produce unconventional gas on a commercial scale in 2014.

But a revision in once promising shale reserve estimates, a lack of a legal framework and some poor initial drilling results have prompted Marathon Oil, Talisman Energy and Exxon Mobil to pull out of Poland.

As MRC informed previously, earlier this year, Total called on peers to revise projects that require tens of billions of dollars of investment as costs escalate. Total totalvowed to lower capital spending even as it starts projects from Norway to Angola to increase output.

Total S.A. is a French multinational oil and gas company and one of the six "Supermajor" oil companies in the world with business in Europe, the United States, the Middle East and Asia. The company's petrochemical products cover two main groups: base chemicals and the consumer polymers (polyethylene, polypropylene and polystyrene) that are derived from them.
MRC