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Russian polymers market fell three years back

February 03/2010
MOSCOW (MRC) - In 2009, overall estimated consumption of the four bulk polymers (PVC, polyethylene, polypropylene and polystyrene) in Russia went down by 15% - this assessment is presented in MRC Annual Reports.
Russian polymers market fell three years back

Last year, overall domestic supply of these polymers hardly crossed the level of 3 million tons, which corresponded to the level of 2006. The hardest hit by the crisis was the PVC market where consumption dropped by 27% last year (down to 760 kt taking into account imports of soft and rigid compounds).


As it was predicted by MRC analysts a year ago, decrease in polyethylene demand was unlikely to be more than 15% - indeed, at year-end, estimated polyethylene consumption shrank by 13% (to 1 302 kt). In 2009, polystyrene and styrene plastics estimated sales went down by 16% (to 350 kt).

An interesting situation arose in the polypropylene market. Despite the crisis, polypropylene consumption increased nearly 2% in 2009 (up to 630 kt). Today, Russian polypropylene is steadily replacing foreign grades; thus, polypropylene imports shrank by 16%, whereas domestic output went up by 20%. Pleasantly, exports of Russian polypropylene increased more than three times, last year.


MRC analysts believe that the assessments presented in the companys Annual Reports are more accurate compared to evaluations of other experts, since MRC data take into account the so-called Belarusian factor. As is well known, official statistics does not account separately exports and imports of goods from Russia to/from Belarus.


The new Customs Union among Russia, Belarus and Kazakhstan, as well as the introduction of the Common Customs Tariff, will have a serious influence on the Russian market already in 2010. The most notable changes are expected in the markets of polystyrene and PVC.

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