MOSCOW (MRC) -- January total imports of linear low density polyethylene (LLDPE) into the Russian market decreased by 53% from December 2015 to 7,800 tonnes. Lower imports were caused by both excessive purchasing in December and a major fall in demand, according to MRC DataScope report.
January LLDPE imports to the Russian market slumped to 7,800 tonnes from 16,300 tonnes a month earlier, with local films producers accounting for the bulk of reduction. Excessive purchasing of polyethylene (PE) in December and the long New Year holidays were one of the reasons for weaker demand for LLDPE. Some companies also said they were forced to limit their purchasing because of the weakening of the rouble, which made this material very expensive for processing.
The structure of LLDPE imports by consumption sectors looked the following way over the stated period.
Last month's imports of film grade LLDPE dropped to 6,800 tonnes from 14,400 tonnes a month earlier. Both local producers of stretch films and multilayer films producers reduced their PE purchasing. Nizhnekamskneftekhim's plans to resume LLDPE production in February affected the decision of stretch films producers to reduce their January LLDPE purchasing.
January LLDPE imports to the other consumption sectors (rotational moulding, cable extrusion, lamination of paper, injection moulding, etc.) did not exceed a total of 1,000 tonnes versus 2,000 tonnes in December. The decrease in demand for PE from these segments was caused by weak demand for finished products, particularly, from producers of large items by rotational moulding and cable and wire products.
MRC