MOSCOW (MRC) -- Imports of polyethylene terephthalate (PET) into Russia dropped by 7% in 2013 and totalled about 172,000 tonnes. The reduced supplies have been registered for the second consecutive year and were caused by a general decline in PET chips consumption in the country, according to MRC Annual report.
The displacement of Korean and other producers' PET by Chinese material should be noted among the trends in the structure of imports. Despite the overall decline in imports, supplies of Chinese PET increased by 21,000 tonnes and totalled about 94,000 tonnes.
HY-W01 grades of Shanghai Hengyi Polyester (China) was the most popular imported grade last year. Its total imports almost doubled in 2013 and amounted to 22,800 tonnes. Imports of Chinese Zhejiang Wankai's WK801 grade also remained high (22,300 tonnes last year).
Polief (Ufa) will launch the second PET line in 2014. Thus, in line with the capacity expansion program "PETF-2010", the plant's capacity will increase by 90,000 tonnes this year to 210,000 tonnes, after which SIBUR will become the largest PET producer in Russia and the CIS markets (the company owns two PET plants - Polief and SIBUR-PETF).
Increased production capacity of Russian plants will promote competition among sellers in the domestic market and further displacement of foreign suppliers. Thoug, it will not be possible to completely displace imports, as large PET consumers in the country still adhere to the strategy of procurement diversification, thus eliminating the risks, which might be caused by possible force majeures.