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Seller's market pushes polymers prices high

March 22/2011
MOSCOW (MRC) -- Growth of volume polymers (polyethylene, PVC, polypropylene, polystyrene and PET) in Russia in 2010 exceeded all forecasts. Market capacity grew last year   by 1 mln tons and reached the level of 4.5 mln tons (+28%), according to MRC Annual Reports.  As per one of the main top-managers of the Russian market, President of SIBUR, D.Konov, 2010 was the year between crisis and future, at that in 2010 there was "unexpected growth even for us".

Within a new service - MRC Video MRC prepared Infographics abouth the situation in the Russian polymers market. In the Infographics You may hear the opinion of leading experts in FSU market of polymers concerning balance and formation of pricing in the internal market of Russia.

The growth of consumption along with limits in reduction of internal prices because of logistic shield brought the Russan market to the market of  the seller. Within next three-five  years polymers market will remain in such situation and it will support high prices for converters. This seems to be the main summary of MRC Annual reports. 

In theory prices for polymers as well as a share of domestic producers in the internal market may be reduced after Russias joining WTO that may occur till the end of 2011. But, from our point of view, sharp changes arent expected in the market and the average custom for polymers will reduce from current 10% to the worlds average 4-6.5% not at once but within the transition period, lets say, 5 years.

To download file with Infographics is available here (20 Mb). To watch the Infographics video, please, save the file and open in Acrobat Reader of 9.4.0 version and higher. You can download it for free here. Detailed information on development of volume polymers markets in Russia is presented in MRC Annual reports.

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