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Delayed deliveries of polymers to Saint Petersburg port aren't critical for the Russian market

March 17/2011

MOSCOW (MRC) -- This winter weather conditions resulted in obstruct line navigation in the port of Saint Petersburg. This circumstances havent resulted yet in serious problems for the Russian market of polymers, according to MRC analysts.

In the eastern part of Gulf of Finland long-term low temperatures caused thick ice cover. Ice movement in the Eastern direction increases ice concentration and ridging. In some cases time spent for negotiation on the way to Saint Petersburg reaches 10 days while, on average, it doesnt exceed 10 hours. Increased time of navigation resulted in serious overloading of port terminals.

Port of Saint Petersburg is one of the most popular delivery points for volume polymers for some reasons. Last year about 100 KT from 350 KT of import  PVC-S were shipped through this port. Over two months this year about 19 KT of resin from North America have been shipped through port of Saint Petersburg. The second popular polymer for the Russian import is HIPS whose imports through this port in 2010 made about 47% from total number of imports. The share of linear polyethylene coming through this port makes about 15% from overall imports.

As per market players, current delays in deliveries through port of Saint Petersburg arent critical for the market. Many companies have insurance stocks of polymers, also not high demand for finished goods, in particular made of PVC, limits consumption.

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