MOSCOW (MRC) - Main suppliers of polycarbonate (PC) into the Russian market Bayer and Sabic Innovative Plastics reduced delivery of PC granules to 7,700 tonnes in January-May 2015, down 46% compared to the same period last year, according to a MRC DataScope report.
Sabic Innovative Plastics reduced supply of PC granules into Russia to 6,800 tonnes in January-May, down 42% year on year. The company reduced the supply of extrusion PC granules by 44% (to 5,900 tonnes), and injection moulding PC by 41% (to 767 tonnes). The company's delivery of bottle grade PC granules for the reporting period reached 155 tonnes. It is interesting to note that last year Sabic did not deliver bottle grade PC into the country.
Bayer has shipped only 930 tonnes over the reporting period against 2,400 tonnes in the same period last year.
At the same time, producer's supply of extrusion PC granules decreased by 72%, to 340 tonnes over the reported period. Bayer's PC for sheet extrusion is one of the most expensive in this segment. Russia's consumption of Bayer's injection moulding PC grades was 590 tonnes over the reported period, compared with 1,200 tonnes year on year.
Bayer and Sabic Innovative Plastics are major PC producers in Europe. Bayer's production capacities of PC make 570,000 tonnes/year. Production sites are located in Belgium (240,000 tonnes/year) and Germany (330,000 tonnes/year).
Production capacities of Sabic Innovative Plastics in Europe are 520,000 tonnes/year, they are located in the Netherlands and Spain. Each plant can produce up to 260,000 tonnes/year of PC granules.
Because of the force majeures on phenol production in Europe, which took place in May, PC market faced disruptions in the supply of Bisphenol A, which consequently led to a PC granules shortage. Because of the dollar strengthening, European producers prefer to sell PC in dollar regions, which leads to a reduction in the volume of deliveries to the domestic market and puts additional pressure on prices.
At the beginning of June contract prices for injection moulding PC granules in Europe were in the range of EUR2,400-2,550/tonne FD NWE, and for extrusion PC at EUR2,350-2,500/tonne FD NWE.
MRC