Russia in WTO: consequences for the polymer market

MOSCOW (MRC) -- The State Duma signed a protocol on Russia's joining the World Trade Organization, effective from July, 10. The day before Russian Constitutional Court resolved that the protocol of Russia's joining to the WTO does not contradict the Constitution.

According to the Head of the RF Ministry of Economic Development, the direct losses from the reduction of import duties after the joining to the WTO in 2013 will make 188 billion roubles, in 2014 - 257 billion roubles. But in fact, the economy benefits from increasing trade.

Under the WTO, during the transitional period Russia must step-by-step reduce the average weighted rate on the imported goods from 7.8% to 10%. The average weighted import duty on chemical products will be reduced from the current 6.5% to 5.2%.

By 2014, the average weighted rate on the imported large volume polymers will be reduced in two stages from the current 10% to 6.5%. The first phase of reduction of import duties will be fulfilled not later than from the beginning of the 13th month from the date of entry into the WTO. Further reduction will occur no later than in 12 months after the first stage of the reductions of import duties.

MRC

MOSCOW (MRC) -- The State Duma signed a protocol on Russia's joining the World Trade Organization, effective from July, 10. The day before Russian Constitutional Court resolved that the protocol of Russia's joining to the WTO does not contradict the Constitution.

According to the Head of the RF Ministry of Economic Development, the direct losses from the reduction of import duties after the joining to the WTO in 2013 will make 188 billion roubles, in 2014 - 257 billion roubles. But in fact, the economy benefits from increasing trade.

Under the WTO, during the transitional period Russia must reduce step-by-step the average weighted rate on the imported goods from 7.8% to 10%. The average weighted import duty on chemical products will be reduced from the current 6.5% to 5.2%.

By 2014, the average weighted rate on the imported large volume polymers will be reduced in two stages from the current 10% to 6.5%. The first phase of reduction of import duties will be fulfilled not later than from the beginning of the 13th month from the date of entry into the WTO. Further reduction will occur no later than in 12 months after the first stage of the reductions of import duties.

MRC

(canplastics) -- Demand in the U.S. for high performance composites is forecast to rise almost 15 per cent per year to USD10.2 billion in 2016, according to a new study by market research firm The Freedonia Group.

Defined in the study as polymer resins reinforced with advanced fibre materials, the "High Performance Composites" report examines the U.S. market for high performance composites by fibre (carbon, aramid, S-glass), market (aerospace, industrial and automotive, defense and safety, energy, consumer, construction), and resin (epoxy, thermoplastics, polyester, phenolics).

"High performance composite demand will be fueled by tremendous growth in the commercial airliner market as well as emerging opportunities in applications such as wind turbines and pressure vessels," the report stated. "However, the high cost and labor-intensive production of advanced composites compared to competitive materials will prevent these materials from penetrating high volume and price-sensitive markets."

MRC

(yarnsandfibers) -- Propylene prices declined marginally across markets by 3-6%. Propylene prices traded at USD1214.20 per metric ton FOB Korea, down 3% as compared to previous year. As compared to the corresponding period last year prices were down by 12.8%.

Acrylonitrile prices tumbled in Asian market amid falling demand. Demand was hard to improve in downstream sectors as acrylic fibre market was operating at 70% while the ABS market was range bound amid ongoing turnarounds and poor demand. In US, acrylonitrile export prices dropped to a seven month low on lower propylene contract prices. Acrylonitrile was traded at USD1,573 per metric ton CFR China, down 12% as compared last month.

Acrylic staple fibre prices were down as sentiments softened tracking low settlements of major suppliers in China. Downstream yarn makers were running below 50% capacity and remained cautious about feedstock purchase in view of lower settlements at the month end. In China, acrylic staple fiber prices dropped by 8.57% and traded at US$2.56 per kg CIF China.

MRC

(yarnsandfibers) -- Ethylene prices continued to edge down across markets amid poor demand from downstream users and falling energy complex. In US spot ethylene dropped as demand remained lackluster and feedstock prices mostly depressed. European spot also dropped pressured by fall in naphtha and overall demand.

Paraxylene markets in Asia tumbled further under pressure of excess supply and delays in starting up new downstream purified terephthalic acid plants in China. European paraxylene slumped as weak confidence continued to weigh on demand. Ethylene prices dropped by 17% in Southeast and Northeast Asia, whereas in Korea prices had declined sharply by 23% to USD899.75 per metric ton FOB. Paraxylene prices dropped 13.4% to 1243.30 per metric ton FOB Korea.

Mono ethylene glycol prices plummeted in Asia weighed down by the decline in crude, paraxylene and ethylene markets. European mono ethylene glycol market turned bearish. US spot market remained quiet on the back of muted demand and falling prices. Purified terephthalic acid markets continued its bearish sentiment as weak downstream polyester sales pressured the PTA prices to go down to a 21-month low. During the month, PTA prices averaged at USD948.60 per metric ton FOB Korea, down 13.5% as compared to previous month. Meanwhile, MEG prices plunged 11% averaging at USD869 per metric ton FOB Korea.

MRC