MOSCOW (MRC) - Imports of polyethylene (PE) in Kazakhstan decreased by 17% in the first eight months of this year.
The fall in demand occurred for high density polyethylene (HDPE), whereas the need for other types of polyethylene increased significantly, according to MRC analysts.
August PE imports in Kazakhstan declined to 11,700 tonnes, compared with 12,500 tonnes in July, largely because of reduced export quotas from Russian producers. Total PE import in the country decreased to 66,600 tonnes in January - August 2014, compared with 80,500 tonnes year on year. Demand for HDPE decreased almost by a quarter, in particular, from local pipe producers, whereas the demand for linear low density polyethylene (LLDPE) and low density polyethylene (LDPE) continues to grow.
Structure of PE supply over the period under review was as follows.
August HDPE imports decreased to 9,200 tonnes, compared with 9,600 tonnes in July. Local companies did not manage to offset the reduction in the supply of Russian HDPE by the increase in the imports from other countries. Total HDPE imports in the country decreased to 50,400 tonnes in the first eight months of this year, compared with 68,100 tonnes year on year. More than 80% of the total HDPE consumption in Kazakhstan occurred for pipe producers. The share of Russian HDPE in the local market is about 65%.
August imports of LDPE in Kazakhstan decreased to 2,100 tonnes, compared with 2,400 tonnes in July. Imports volumes reduced because of the reduced export quotas from Russian producers and high prices. Total imports of LDPE in the country were 13,400 tonnes in January - August of this year, compared to 9,900 tonnes year on year. Key suppliers of LDPE in the country were Russian producers with a share of about 95% from the total imports.
August imports of LLDPE in Kazakhstan were 400 tonnes, compared with 462 in July. Total LLDPE imports in Kazakhstan were 2,800 tonnes in the first eight months of the year, up 9% year on year. Key suppliers of LLDPE in the country were producers from Asia and Uzbekistan.
MRC