MOSCOW (MRC) - Russia’s imports of PVC in December on low season declined to 29,200 tonnes. Growing domestic production and large carry-over stocks from 2011 allowed to reduce the imports of resin to the Russian market by 9% in 2012, according to MRC DataScope.
In 2012, the dependence of the Russian market of PVC imports decreased by 9%. SayanskKhimPlast and Kaustik (Sterlitamak), which increased their capacity of PVC by 50,000 tonnes helped to reduce the dependence on external supplies. Cold February - March and large carryover stocks (over 50,000 tonnes) in 2011 also affected greatly.
SayanskKhimPlast in 2012 after the planned reconstruction increased its production capacity of PVC to 270,000 tonnes. Over the eleven months of last year, the company produced about 247,000 of resin. Whereas in 2011 its total production volume was about 259,000 tonnes.
Kaustik (Sterlitamak) in 2012 increased the annual capacity of 220,000 tonnes. The company aims to expand the capacity of PVC up to 600,000 tonnes per year, if key Russian producers also expand their capacity on ethylene production. In 2011, despite the conflict with Gazprom neftekhim Salavat regarding the supply of ethylene, Bashkir plant produced 174,400 tonnes of resin, over the eleven months of 2012 the output rose to 181,000 tonnes. In February 2013 Kaustik plans to get additional volumes of ethylene from Nizhnekamskneftekhim, which helps the company to increase capacity utilization.
2011 was quite unusual for Russian converters. Significant growth of export prices of PVC in the U.S. forced Russian processors significantly increase the volume of purchases in the first half of the year, while the growth in demand for finished products made of PVC was less dynamic. These factors resulted in a serious surplus in the market in August and by the beginning of 2012 the total amount of carry-over stocks at the Russian producers and trading companies had exceeded 50,000 tonnes.
The beginning of 2012 due to severe cold resulted in bad sales of finished products made from PVC, said many market participants. The demand in January increased, in February - March due to the severe cold the sales dropped to 30%. Which also slowed down the growth in demand for PVC in Russia.
In December, under pressure from seasonal factors PVC imports to Russia declined to 29,200 tonnes. In general, in 2012 the total imports of suspension to Russia amounted to 417,600 tonnes, up 9% compared to last year. About 70% of the total imports accounted for PVC makers from the U.S. and China, their share in total imports was 46% and 23%, respectively.
MRC