MOSCOW (MRC) -- February became quite a difficult month for Russian plasticizers consumers. Given the acute shortage of plasticizers, particularly, of dioctyl phthalate (DOP), some producers of plasticized polyvinyl chloride (PVC) were forced to limit their capacity utilisation, reported MRC analysts.
There has been a hidden transformation of the Russian plasticizers market for the past few months. The conflict between the supplier of alcohol 2-ethylhexanol (which is one of two primary components for the DOP production) and plasticizers producers entered an acute phase in February. As a result, only one of the four Russian plasticizers producers is engaged in DOP production at the moment. This factor led to an acute shortage in the market, and some producers of plasticized PVC were forced to reduce their capacity utilisation on the back of tight supply of DOP.
The conflict in the 2-ethylhexanol market made Permian DOP producer - Rosplast - completely switch to the production of another type of plasticizer - diizonilphthalate (DINP). Roshal plasticizers plant partially switched to DINP production. The only plant that produced DOP in February was Gazprom neftekhim Salavat.
The lion's share of Gazprom neftekhim Salavat's plasticizer was shipped under the contractual obligations to Bashkortostan and Tatarstan plants this month. Some DOP quantities still got to the spot market, deals were done in the range of Rb105,000-107,000/tonne FCA, including VAT.
As reported many market participants, there was also a shortage of DINP in the market because of limited production, wherea imports were very expensive. The price spread was wide enough in the market, deals for Russian DINP were done in the range of Rb113,500-125,000/tonne FCA, including VAT. Prices of imported plasticizer reached Rb140,000/tonne FCA, including VAT.
Some market participants said they do not rule out the fact that the situation in the plasticizers market would remain tense in March. At the same time, some consumers have already begun to actively look for a cheaper alternative to DOP and DINP, and another structural transformation might take place in the market within a few months.
MRC