MOSCOW (MRC) -- Consumption of polyethylene terephthalate (PET) chips in Russia fell over the first six months of 2015 by 20% year on year and totalled 270,000 tonnes, according to MRC ScanPlast report.
The market capacity has been reducing because of the weakening demand in the PET bottles market. At the same time, Russian producers managed to increase production of bottle grade PET chips, despite the overall decline in consumption. PET production in Russia increased by 11% from January to June and totalled 251,000 tonnes.
Polief remained the largest PET producer in the first half of 2015. The share of the Bashkir plant in the total production structure was 44% from January to June.
The capacity of the Russian PET market has been falling rapidly this year. Traders that offer imported PET have been the first ones to feel the decrease in consumption so far.
As reported earlier, Russian companies reduced their purchasing in foreign markets because of the increase supply of Russian PET in the market and unpredictability of the currency fluctuations (long delivery of Chinese and Korean PET, an average of 45 days). Converters were trying to minimize purchasing in foreign markets by signing contracts with Russian plants. Prices of Russian PET were announced in roubles, which allowed to minimizee the currency component and the devaluation risks in procurement.
Imports of PET chips were 37,700 tonnes from January to June 2015, down by 3.3 times year on year. China remained the largest supplier to Russia. The volume of purchases were 18,500 tonnes, but this figure reached 98,000 tonnes from January to June 2014. Only Papet Cool grade of Lotte Chemical accounted for the increase in shipments among Asian grades (imports totalled 6,440 tonnes versus 3,550 tonnes a year earlier).
Exports to foreign markets rose by 60% to 14,700 tonnes in the first half of 2015. The CIS countries dominated in the structure of consumers of Russian PET. Belarus accounted for the bulk of shipments in the first half of 2015. The share of Russian PET was 46% in the total exports to the Belarusian market. Ukraine occupied the second place. The share of exports to Ukraine was 28% in H1 2015.