MOSCOW (MRC) -- January overall imports of polyethylene (PE) to the Russian market decreased by 46% from December 2015, totalling about 26,000 tonnes. Lower imports was caused by both long New Year holidays and the rouble devaluation, according to MRC DataScope report.
January PE imports to the Russian market fell to 26,000 tonnes from 48,500 tonnes a month earlier. Due to the long New Year holidays, as well as the weakening of the national currency, many Russian companies significantly reduced their PE purchasing in foreign markets at the beginning of the year. Purchases of all PE grades dropped, with linear low density polyethyelne (LLDPE) accounting for the greatest decrease in shipments.
The PE import structure by grades looked the following way over the stated period.
Last month's imports of high density polyethylene (HDPE) slumped by 44% from December 2015 to 8,800 tonnes. In addition to seasonal factors, lower HDPE purchasing in foreign markets was a result of sufficient supply of material from local producers. Pipes producers and producers of steel pipes with PE anti-corrosion coating accounted for the greatest fall in imports of this PE grade (down by 55% and 49%, respectively).
January LLDPE imports fell to 7,700 tonnes from 16,300 tonnes a month earlier. Expectations of the resumption of LLDPE production by Nizhnekamskneftekhim and the rouble devaluation, which made imported material very expensive for Russian converters, affected the volume of purchasing.
Last month's imports of low density polyethylene (LDPE) dropped to 6,000 tonnes (including deliveries from Belarus), while this figure was 10,200 tonnes a month earlier. Lower LDPE purchasing was caused by the seasonal factor (weak demand for finished products). Producers of laminated paper and of cable and wire products accounted for the main decrease in PE procurement.
January imports of other ethylene polymers (including ethylene vinyl acetate (EVA) went down to 3,500 tonnes from 6,200 tonnes in December 2015. Producers of films and of cables and wires reduced their purchasing.
MRC