SIBUR may raise EPS prices

MOSCOW (MRC) -- SIBUR Group, Russia's largest producer of expandable polystyrene (EPS), may increase its February contract prices for the Russian domestic market by Rb3,000/tonne, according to ICIS-MRC Price report.

Converters and traders reported this news to MRC this week. Sources in SIBUR also confirmed the roumors regarding an upcoming increase in the plant's contract EPS prices of Alphapor grade for February shipments.

The reason for the price rise was the devaluation trends in the foreign exchange market in January 2015. The Russian rouble has resumed again its downward trend against the US dollar since early 2015. The Russian EPS market fully depends of imports. Domestic production capacities are not enough to meet the needs of Russian converters, reported MRC analysts. Therefore, EPS prices in the Russian market depend on prices of imported material, the price of which grew in roubles.
MRC

MOSCOW (MRC) - Russia's demand for bottle grade polycarbonate (PC) declined to 2,700 tonnes in January-December 2014, down 25% year on year, according to MRC ScanPlast.

Demand for the material over the reported period has decreased on the back of the rouble devaluation. This material is wholly imported into the country, because of the lack of the domestic production.

The main volume of imports occurred for Asia (86%), while 73% were delivered from South Korea. Major producers, who deliver the material in the Russian market were LG Chem (43%), Samyang Corporation (26%), Mitsubishi Engineering-Plastics Corp (17%).

Because of the strengthening of the dollar on world markets, the price of the Asian PC granules in Russia increased up to the level, when Russian converters' margins dropped to a critical level. Some converters even had to suspend their operation. End users refused to accept higher prices for products.

The way out was the extension of bottle service life, even the usage of bottles with with defects. Producers in their turn, often use of recycled or low-quality PC, which may contain residues of phenol, which is a threat to health.

Converters do not expect the market to improve significantly in 2015. Consumption will continue to decline if the exchange rate has stabilized at acceptable market levels. Weaker purchasing activity and worsening expectations regarding the future economy situation will have a significant pressure on demand.


MRC

MOSCOW (MRC) -- Exports of polyethylene terephthalate (PET) from Russia increased in 2014 by 38% year on year, according to MRC DataScope report.

Over 28,000 tonnes of bottle grade PET were exported from Russia during the stated period. To date, Belarus is the main consumer of Russian material. Belarusian converters accounted for about 47% of the total exports. The five largest consumers also included the United Kingdom, Poland, Ukraine and Serbia.

Higher exports have been registered since early August and were caused by the devaluation of the Russian rouble.

According to MRC data, 2011 accounted for the peak exports of Russian PET. Alco-Naphtha shipped for export more than 70% of the produced material during its first year of PET production in Kaliningrad after the launch. In 2011, exports to foreign markets totalled over 72,000 tonnes. The plant was increasing its output from 2011 to 2013, reducing export shipments and strengthening its presence in the Russian market. In 2014, despite lower production, the plant raised shipments to foreign markets.

For more information on production of Russian producers, the overall market balance and the outlook of the industry, you can see in the Annual Report "PET in Russia in 2015".

MRC

MOSCOW (MRC) - Imports of unmixed polyvinyl chloride (PVC) in Kazakhstan increased to 65,100 tonnes in 2014, up 46% compared with the same time a year earlier, according to MRC analysts.
The peak in unmixed PVC imports in the country occurred for September, and external supplies began decreasing since October. In December PVC imports in Kazakhstan decreased to 1,300 tonnes, compared with 2,600 tonnes in November. Total PVC imports in the country increased to 65,100 tonnes in January - December 2014, compared with 44,500 year on year. Such a serious increase in PVC imports in the country resulted from a further re-imports of the polymer in Russia.

According to the Statistics Committee of the Republic of Kazakhstan exports of unmixed PVC from the country were about 11,000 tonnes in July-November 2014. The main suppliers of PVC in the local market were producers from China, with their share of more than 97% from the total PVC imports into the country.

MRC

MOSCOW (MRC) - Russia's production of finished products made from polymers grew by 11.8% in 2014. The leaders in the industry last year traditionally were producers of polymer films, according to MRC analysts.

December production of the finished products made from polymers seasonally decreased by 4.3%, compared with the November level, however the year end production volumes increased. According to the Federal State Statistics Service of the Russian Federation, the December production of unreinforced and noncombined films decreased to 105,000 tonnes, compared to 110,000 tonnes in November 2014. Russia's output of noncombined and reinforced films 1.136 mln tonnes in 2014, up 33.1% year on year.

December production of plates and sheets in Russia totalled 19,200 tonnes, compared to 18,100 tonnes in November. Total production of plates and sheets in the country was 219,000 tonnes in Russia, up only 0.3% year on year.

December production of plastic pipes, hoses and fittings in the country fell to 52,600 tonnes, while in November it reached 54,200 tonnes. Russia's production of plastic pipes, hoses and fittings was about 609,000 tonnes in 2014, up 2.4% year on year.
MRC