MOSCOW (MRC) - Kazakh market dependence on polypropylene (PP) imports decreased this year, including because of exports reduction. PP imports in the country decreased to 4,400 tonnes in the first three months of this year, down by 8% year on year, according to MRC analysts.
March PP imports in Kazakhstan remained at the level of February at 600 tonnes. Total PP imports in the country were about 4,400 tonnes in January - March 2015 compared with 4,800 tonnes in the same time a year earlier.
Decrease in imports also resulted from the reorientation of the local PP producer to the sales in the local market.
March PP exports (excluding exports to Russia) from the country were about 1,500 tonnes, compared with 1,600 tonnes in February.
Total PP exports from Kazakhstan were about 4,900 tonnes, compared with 6,600 tonnes year on year. As it was written previously, Neftekhim Ltd launched production of polypropylene powder granulation on 25, December. The project worth 5.8 bn tenge allowed the company to increase production of polypropylene (PP) to 47,800 tonnes.
The producer after the launch of granulation unit has significantly expanded its sales geography, domestic sales have also increased at times.
Neftekhim Ltd was commissioned in 2009. The company produces tert-butyl (MTBE) and polypropylene (PP). 30,000 tonnes/year PP capacities were launched in 2011; the plant did not have PP granulation unit, PP was produced in the form of powder, which limited its scope. The producer has to sell all produced PP to export markets, particularly in China, as local producers can not use PP in powder form.
MRC