MOSCOW (MRC) -- Imports of polyethylene terephthalate (PET) into Russia fell over the first six months of 2015 by three times year on year and totalled 42,000 tonnes, according to MRC DataScope report.
Russian companies reduced their purchasing in foreign markets because of the increased supply of Russian PET in the market and unpredictability of the currency exchange rate fluctuations (long delivery of Chinese and Korean PET takes an average of 45 days). Converters were trying to minimize their purchasing in foreign markets, concluding contracts with Russian plants. Prices of Russian PET were announced in roubles, which allowed to minimize the currency component and the devaluation risk in the procurement.
As reported earlier, PET production of Russian plants grew from January to May 2015 by 12% and was 208,000 tonnes.
Besides, demand has been subsiding in the finished products market this year, which also does not increase consumption. Consumers of PET preforms have reduced production of finished products.
As reported previously, the fall in the drinks production that use PET bottles ranged year on year between 7.4%-22.4% from January to May 2015, depending on the sector. Producers of mineral water that is mineralized artificially accounted for the greatest decrease in percentages. The fall of production in the sector was 22.4% over the first five months of the year.
PET chips accounted for the lion's share in the supply structure. Imports of PET chips totalled 37,700 tonnes from January to June 2015, down by 3.3 times year on year. China remained the largest supplier into Russia. The purchasing volume was 18,500 tonnes, but this figure reached 98,000 tonnes from January to June 2014. Only shipments of Papet Cool of Lotte Chemical increased among the imported Asian grades (imports totalled 6,440 tonnes versus 3,550 tonnes a year earlier).
Imports of flex fell by 21% to 2,600 tonnes. Companis also raised purchasing of amorphous PET this year.
MRC