MOSCOW (MRC) -- Demand for polycarbonate (PC) fell by 31% in Ukraine in 2015 from last year and totalled 2,800 tonnes, according to MRC DataScope report.
The hryvnya devaluation, lower purchasing power of the population, introduction of additional import duties (particularly, 5% on polymers) in 2015 inevitably led to a reduction in consumption of PC granules. The fact that the Ukrainian PC market completely depends on imports and, primarily, on supplies from Europe, is an important factor.
The injection moulding segment is the main PC consumption segment in Ukraine. Contract prices of PC granules showed an upward trend in Europe last year, which was felt by the Ukrainian market. Thus, prices remained at EUR2,550-2,700/tonne FD NWE over the past two quarters. They rolled over for 2016. To date, European suppliers maintain their contract prices unchanged. Some players believe these prices will the same until the second quarter.
With regard to Ukraine's domestic prices, because of the deterioration of the economic situation, traders were selling material at prices that were as close as possible to the purchase prices , which allowed converters to maintain consumption at the minimum required level. Each of the sellers has its own algorithm for the pricing policy, which is often flexibly adjusted to the customers.
Despite the cancellation of the import duty, traders do not expect a significant growth in demand, and they plan sales not higher than last year.
MRC