MOSCOW (MRC) - Consumption of expandable polystyrene (EPS) and general purpose polystyrene (GPSS), actively used in the insulation sector, grew by 25% and 11% in Ukraine in the first seven months of 2014, compared with the same time in 2013, according to the Monthly report of MRC.
Fearing disruptions in heating and electricity in the cold season, Ukrainians actively insulated their homes. Imports of EPS, used for the production of EPS-boards, in Ukraine increased by 26% and exceeded 16,000 tonnes in January-July 2014.
Strong demand for imported brands also showed producers of XPS-boards. Imports of GPPS from producers of thermal insulation materials increased by 11% to 4,500 thermal protection in January-July 2014.
Buying activity in the market was high, despite the rapid rise in prices, said traders. All polystyrene in this sector is imported into the country.
Because of the conflict in the east of Ukraine, Stirol, the only Ukrainian producer of EPS and GPPS, completely stopped working and supplies to the domestic market this year.
Prices for finished goods have also grown sharp, following the devaluation of the national currency. Prices for the brand of polystyrene, used for the production EPS and XPS-boards have increased in hryvnyas by 60-70% since the beginning of the year.
Demand for other styrene plastics has fallen. For example, January-July imports of high-impact polystyrene (HIPS), which is used in the production of refrigerators, electrical and plastic containers, fell to 6,600 tonnes, down 18% compared to the same time a year earlier.
MRC