The main reason for the growth was development of its extrusion segment, which traditionally takes about 80% of the market. Currently it is characterised by surplus because of the seasonal decline in demand. Traders have built up stock inventories ahead of the second (after May) seasonal peak in demand for PC, which occurs in September. 

 

Converters have completely switched to production of sheets of thickness 6, 8, 10 mm or more. Capacity utilisation at sheets producers is now at a level of 20-30% because of the weak demand for the product.

 

Importantly, the only Russian producer, Kazanorgsintez, is oriented to the domestic market at the expense of exports. 29,500 tonnes or 98% form the total producer's production since the beginning of this year occurred for PC for sheet extrusion, which were delivered in domestic market. The producer's share in the total consumption in the Russia's extrusion segment was about 66% since the beginning of this year.

 

Thus, given the current consumption we can see a tendency for a gradual import substitution in the extrusion industry. Converters because of high prices for imported products, (especially medium and small) prefer to buy Russian PC instead of Asian one. In particular, this applies to those producers who are just entering the market, and for which the high cost of feedstock and consequently finished products will prevent entry into the industry.