Calculated consumption of PP in Ukraine reached 120,800 tonnes in the first eleven months of the year, up 9% year on year. Ukrainian converters offset the absence of PP from LINIK and limited exports of European PP by increase in the PP imports from Russia, India and the Middle East.
Demand for homopolymer PP continued to decline in December. However, the weakening of the national currency, as well as the rise in prices in foreign markets led to a rise in prices in the Ukrainian market.
Demand for injection moulding PP-block fell by 21% to 12,600 tonnes over the reported period.
Demand for polypropylene (PP) in Ukraine increased to 120,800 tonnes in the first eleven months of this year. The demand has improved in the sectors of homopolymer PP and PP random copolymers. Rosneft does not rule out the possibility of the resumption of PP production at LINIK in September 2014. Rosneft, LINIK's new owner, plans to resume oil refining in the second quarter of 2014.
Demand in the sector of injection moulding decreased by 1% to 21,600 tonnes. Ukraine's imports of block copolymers of propylene (PP-block) decreased by 20% to 14,500 tonnes in the first eleven months of the year.
Imports from India and Saudi Arabia were reduced.
Imports of block propylene copolymers for pipe extrusion and sheets decreased by 7% to 1,950 tonnes in the first eleven months of the years. Imports of random-copolymers, on the contrary, increased by 30% to 11,100 tonnes in the first eleven months of the year.
A further drop in LDPE imports to the country is expected in February on the back of the devaluation and political instability.
As expected, PE imports to Ukraine fell by 27% in January 2014 from December 2013 and totalled about 18,220 tonnes. High January imports in the previous years were caused by the desire of some producers to build up additional PE inventories in anticipation of rising prices. The year of 2014 began with high prices in foreign markets, resulting in a drop in PE purchasing to the minimum necessary level.
HDPE prices were steady in January. Offer prices for film grade HDPE were in the range of UAH16,300-17,000/tonne CPT Kiev, including VAT. Blow moulding HDPE was offered by an average of UAH200-300/tonne higher. There was a shortage of supply in the injection moulding and pipe grade HDPE markets, but this factor was offset by weak demand.
Imports of linear low density polyethylene (LLDPE) decreased by 12% from December to about 3,730 tonnes. Reduced LLDPE imports were caused by weak demand for finished products (stretch films) and higher prices in foreign markets.
Imports of polyethylene (PE) to Ukraine slumped in January 2014 on the back of higher prices in foreign markets and limited export quotas of some producers. Prices were relatively stable. February PE imports to Ukrain are expected to drop further on the back of the worsening of the political situation and the weakening of the national currency.
January imports of high density polyethylene (HDPE) to the Ukrainian market also dropped (high prices in Europe) and totalled about 7,500 tonnes. Imports fell in all consumption sectors with the exception of film HDPE. Imports of PE for extrusion coating of large diameter steel pipes were suspended.
January imports of low density polyethylene (LDPE) decreased to 7,000 tonnes from 9,600 tonnes in December 2013. Limited LDPE supply and high export prices made Ukrainian companies significantly reduce purchasing from Russia.