MOSCOW (MRC) -- The Russian polycarbonate (PC) market increased by 7% over the first seven months of 2014 and reached 60,000 tonnes, according to MRC ScanPlast.
Increased consumption was mostly owed to the extrusion segment. It accounts for 83% of the total market and is the most promising and fastgrowing sector. Converters' main products in this segment are honeycomb and solid sheets. This sector's main application areas are agriculture (greenhouses building) and construction (roofing and vandal-proof constructions). Accordingly, May accounts for the peak demand for sheets from the agricultural sector, and September accounts for the peak demand from construction companies. This fact directly affects demand in the extrusion grade PC granules market.
According to the Federal State Statistics Service of the Russian Federation, the construction segment showed over the said period a drop of 3% year on year. Its recovery is expected in early Autumn. At the same time, an increase of 3,5% was demonstrated in the agricultural sector from January to July 2014. State programs, aimed at supporting and upgrading this segment of the economy, play an important part in the growth.
If we consider the consumption of pure unfilled PC granules, imported material accounts for 35% of the extrusion sector. Imports are mainly represented by Sabic and Bayer material. The rest quantities are supplied to the market by the only national PC producer - Kazanorgsintez. The company adopted a policy to support Russian converters. In this regard, Kazanorgsintez refused to ship its products to foreign markets, and revised its production structure in favor of extrusion grade PC. Kazanorgsintez's material is the most affordable one in value for money terms for small and medium-sized converters that are in no position to use imported material because of low margin.
MRC