Exports of Russian EPS fell by 27%

MOSCOW (MRC) -- Shipments of Russian expandable polystyrene (EPS) to foreign markets fell from January to November 2014 by 27% year on year and totalled 16,700 tonnes, according to MRC ScanPlast report.

SIBUR is the main exporter of Russian EPS. Plastik, Uzlovaya, the former part of SIBUR and sold in December 2013, almost did not ship any material for exports. Plastik's exports totalled less than 300 tonnes over the stated period.

Stronger domestic demand was the reason for lower exports. The rouble devaluation had a significant impact on the price rise of imported EPS for Russian companies. This year's demand for Russian material was strong on the back of high prices of imported EPS.

In their turn, Russian plants have chosen a policy of supporting local converters and reduced the quota for exports. At the same time, export prices were announced in US dollars and exceeded domestic prices in roubles, calculated at the foreign currency exchange rate.

Ukraine is the main consumer of Russian material. Exports to Ukraine were 15,800 tonnes from January to November 2014 versus 20,800 tonnes a year earlier.

Despite the overall decline in the economy of Ukraine this year, EPS consumption grew in the country. EPS imports to Ukraine increased by 25% from January to October 2014 and totalled 26,800 tonnes.

MRC

MOSCOW (MRC) - Russia's production of extrusion polycarbonate (PC) grew to 73,000 tonnes in January-November 2014, up 9% year on year, as per MRC ScanPlast.

Sheet extrusion segment at the moment remains the only one in the Russian PC market, which shows steady growth over the reporting period. Its growth has not fallen even now, in the period of deepening crisis in macroeconomics of Russian market.

The sector is mostly expanding because of the increasing production of Russian PC granules, supplied to the domestic market. The only Russian PC producer in the CIS countries Kazanorgsintez (KOS), delivered 47,800 tonnes of PC in the domestic market over the eleven months of the year, up 12% year on year.

At the same time, the producer has increased its share in the extrusion PC market to 65%, compared with 64% for the corresponding period last year. The remaining share was divided among European producers, the share of Asian material was low. The main importer of extrusion PC to the Russian market was Sabic Innovative Plastics. Its share in the supply of PC granules for sheet extrusion in the current year was 81%. The total calculated consumption of the PC granules in Russia increased to 85,000 tonnes in January-November 2014, up 6% year on year.

The structure of demand remained unchanged. Extrusion segment occurred for 86% of the market, injection moulding - 11%, blow moulding - 3%. At the same time, the consumption of injection moulding grades remained at the same level as last year, extrusion - increased, bottles blow moulding - decreased.

Because of the rouble devaluation and the complexity of the economic situation Russia tries to substitute imports as much as possible.


MRC

MOSCOW (MRC) -- Shipments of polypropylene (PP) into the Belarusian market grew by 1.7% over the first ten months of 2014 and totalled 68,400 tonnes. Demand for propylene copolymers increased, whereas the need for propylene homopolymer (homopolymer PP) dropped, reported MRC analysts.

According to the National Statistical Committee of the Republic of Belarus, October PP imports to the Republic of Belarus totalled 7,500 tonnes, which virtually equalled the September figure. The overall PP imports to the domestic market reached 68,400 tonnes over the first ten months of 2014 versus 67,200 tonnes in 2013. Copolymers of propylene accounted for a surge in demand, which was about 19%, whereas demand for a more popular product - a homopolymer PP, on the contrary, decreased.

The consumption structure by PP grades looks the following way over the stated period.

October imports of homopolymer PP rose to 5,600 tonnes because of increased supplies from Russia versus 5,100 tonnes a month earlier. The overall imports of propylene homopolymers supply the local market totalled just over 46,700 tonnes from January to October 2014 versus 49,000 tonnes a year earlier. Russian producers with the share of about 67% over the said period are the key suppliers of homopolymer PP to Belarus, producers from Poland and Germany occupied the second and third places, respectively.

October imports of propylene copolymers dropped to 1,900 tonnes (2,400 tonnes in September). Imports of propylene copolymers to Belarus rose by 18.7% over the stated period and totalled 21,700 tonnes. Germain producers with a share of about 57% are the main suppliers of propylene copolymers to the local market the share of Russian producers in this segment rose to 11%.
MRC

Moscow (MRC) - Russian producers of suspension polyvinyl chloride (SPVC) announced an increase in contract prices for January delivery of Rb2,000/tonne. The rise in prices resulted from several factors, according to ICIS-MRC Price Report.

Negotiations on January shipments of Russian PVC to the domestic market began this week. Most local producers announced an increase in contract prices on average by Rb2,000/tonne, compared with the December level. The rise in prices of the polymer resulted from the increase in the feedstock prices, as well as a significant rise in price of imported material.

Negotiations on January contract prices this week were done in the range of Rb50,000-52,000/tonne, including VAT and delivery, while the December contracts were in the range of Rb48,000-50,000/tonne, including VAT and delivery.

Some producers reported that they have practically contracted all their PVC volumes for January, and plan in February to go for further price increases. Most converters understand that, given the devaluation of the rouble in December they can not refrain from price rise for PVC.

At the same time, many companies will be shut for maintenance works during almost all January, and as a result, the volume of purchases will be limited. Situation in the foreign markets remained mixed.

Suppliers of North American PVC have cut prices for shipments in January to USD810-830/tonne CFR St Petersburg.
Producers of acetylene Chinese PVC have kept their export prices in the range of USD810-860/tonne DAP Dostyk.
Given the current dollar the price for imported PVC for Russian converters will be on average at Rb60,000/tonne, including VAT and delivery.
MRC

MOSCOW (MRC) -- Dairen Chemical Corporation is likely to shut its No.2 vinyl acetate monomer (VAM) plant for maintenance turnaround, reported Apic-online.

A Polymerupdate source in Taiwan informed that the plant is planned to be shut on March 1, 2015. It is likely to remain off-stream for around one month.

Located in Mailiao, Taiwan, the plant has a production capacity of 300,000 mt/year.

We remind that, as MRC informed previously, Celanese Corporation, a global technology and specialty materials company and a global leader in EVA emulsions, increased November prices of vinyl acetate-based emulsions sold in the Americas. Thus, PVAc homopolymer, vinyl acetate ethylene (VAE) and vinyl acrylic emulsions rose by up to USD0.05/wet pound effective November 1, 2014.

Besides, Wacker Polymers, a division of Wacker Chemie AG, raised its prices for VINNAPAS vinyl acetate-ethylene (EVA) and VINNOL ethylene-vinyl chloride-based (EVCL) copolymer dispersions and dispersible powders in the Americas, effective 1 November, 2014. Thus, Wacker implemented a price increase of USD0.03/pound.
MRC