MOSCOW (MRC) -- The dependence of the Ukrainian polyethylene (PE) market on imports dropped by 8% in 2013. The main reason for weaker demand was the unfavorable economic situation in the country, which led to a fall in demand for finished products, according to MRC Annual report.
PE imports into the Ukrainian market dropped to 306,000 tonnes last year from 331,200 tonnes a year earlier. Demand for low density polyethylene (LDPE) and linear low density polyethylene (LLDPE) slumped in 2013 on the back of reductions of industrial production in Ukraine.
The structure of PE imports by grades looks the following way.
Imports of high density polyethylene (HDPE ) rose to 137,200 tonnes in 2013 from 132,000 tonnes a year earlier. Increased imports were caused by both the outage at the domestic producer (Karpatneftekhim) and stronger demand for finished products in all sectors of consumption, the only exception being a pipe HDPE market (demand dropped by 7%).
LDPE imports fell to 98,500 tonnes last year from 114,300 tonnes a year earlier. The sector of paper lamination (the so-called Tetra Pak packages) accounted for the greatest decline in demand (about 70%) for LLDPE. Demand for LDPE for the production of cable insulation fell by 20%.
LLDPE imports fell by almost a quarter to 57,000 tonnes from 74,200 tonnes. The sectors of cable insulation (approximately 31%) and films (about 26 %) production, including stretch films, showed weaker demand for LLDPE in 2013. At the same time, demand for LLDPE grew in the injection moulding sector (about 25%) and in the sector of rotational moulding of large items (about 6%).
Imports of ethylene vinyl acetate (EVA) rose in 2013 to 9,200 tonnes from 6,500 tonnes because of stronger demand in the injection moulding sector (shoe soles).
Import of other ethylene copolymers dropped to 4,100 tonnes last year from 4,400 tonnes in 2012.
MRC