MOSCOW (MRC) -- Russia's production of polyethylene terephthalate (PET) chips rose in January-April 2016 by 4.6% year on year, according to MRC ScanPlast report.
PET chips producers raised their capacity utilisation and PET output on the back of strong demand in the Russian domestic market this year. Russia's PET production increased in January-April 2016 from 162,500 tonnes (a year earlier) to 170,000 tonnes (an increase of 7,500 tonnes).
The Kaliningrad plant Alco-Naphtha considerably increased its capacity utilisation in April. The plant's output of PET rose by 25% from March and reached 14,400 tonnes. The plant's representative reported the plans to increase production a month earlier. At the same time, one of SIBUR's plant - Polief - slightly reduced its capacity utilisation in April. However, in May, the plant again reached 100% capacity utilisation.
According to MRC's data, Russia's consumption of injection moulding PET increased in January-Aprilby 10% year on year: from 173,800 tonnes to 191,400 tonnes (an increase of 17,700 tonnes).
As per ICIS-MRC Price report, there was a "seller's market" in Russia this spring. The range of Russian plants' spot prices was between Rb85,000-92,000/tonne FCA, including VAT, in mid-May. Some companies refused customers in spot sales on the back of the absence of available quantities. At the same time, contract PET prices were much lower than the current spot prices and will be reduced in June.
MRC