Market Dynamics
PP production in Russia increased by 23% in the first half of 2014
Time: 2014-07-15 Source from: www.mrcplast.com
MOSCOW (MRC) - Russia's production of polypropylene (PP) increased by 23% in the first six months of this year, compared to the same period in 2013, according to MRC ScanPlast.
June PP production in the country was 88,400 tonnes, compared with 90,200 tonnes in May. Russia's PP production totalled 498,800 tonnes in January - June 2014, compared with 405,000 tonnes year on year. Despite such a serious production figures, Russian PP producers have not yet fully implemented their production potential.
Many Russian producers increased their production volumes in the first half of 2014, the exception were only Neftekhimiya (Kapotnya) and Tomskneftekhim. Their PP production over the reported period was 59,200 tonnes and 67,300 tonnes, down 1% and 2% compared with the first six months in 2013, respectively.
Nizhnekamskneftekhim and Ufaorgsintez increased their PP production by 2% and 6%, respectively, to 104,300 tonnes and 64,100 tonnes.
Poliom (Titan Group, Omsk) launched 180,000 tonnes/year PP production in February 2013, but this year the company has expanded its production capacity to 210,000 tonnes/year. Poliom's PP production was 86,300 tonnes in January - June of this year.
Russia's largest producer of polypropylene - Tobolsk-Polymer (SIBUR) in recent months reached a fairly high level of production rates. The producer's PP output was 97,800 tonnes in the the six months of this year. The production potential at Tobolsk-Polymer allows to produce monthly at least 40,000 tonnes.
Stavrolen's 120,000 tonnes/year PP production has been idle since late February. Company officials have repeatedly expressed readiness to restart PP production, using imported propylene from 1, June, but because of the feedstock shortage the restart was postponed.
Thus, the Russian producers have sufficient capacity (resumption of Stavrolen and increase in capacity utilisation at Tobolsk-Polymer) tp increase domestic PP production.