MOSCOW (MRC) -- Imports of pure polycarbonate (PC) to the Russian market slumped from January to May 2015 by 50% year on year to 8,600 tonnes, according to MRC DataScope report.
There has been a gradual imports substitution in the Russian PC granules market since last year. The sheet extrusion sector accounted for the main process. Most of the Russian converters were in no position to purchase imported polymer on the back of the rouble devaluation and higher PC prices in Europe and Asia. Therefore, demand for Russian material of Kazanorgsintez increased significantly. Despite the fact that the plant operates at full capacity, the market is still experiencing a shortage. The overall consumption might reach 10,000 tonnes per month in the market in the seasonal peaks of demand (May and September). And Kazanorgsintez's production capacity is 6,000 tonnes.
Supply was also tight in the European PC market in May and June because of force majeures at phenol plants in May. This led to another jump in PC prices and to a reduction in exports. However, conveserly, exports increased to the dollar zones on the back of a favorable cross-rate. Therefore, shipments from Europe to the Russian market are likely to drop.
The segments, where imports substitution is impossible, encounterred the most acute shortage. These are consumers of bottle grade PC. Polymer was mainly shipped from Asia, more seldom - from Europe. The market slumped by 65% over the stated period compared to the same period a year earlier and totalled only 350 tonnes. Shipments of Asian blow moulding PC will be resumed only in July.
In early July, Kazanorgsintez, the only PC producer in the CIS countries, will shut down its production for a scheduled maintenance until the end of the month. The plant will resume its operations on 29 July. Despite the end of the season and weaker demand, the market is also likely to experience a shortage in July.
MRC