Shipments of extrusion grade PC from the Asian region began in April 2014, along with the traditional seasonal increase in demand for material.

 

Market players said unjustifiedly high and speculative prices for PC of European and domestic producers, which are leaders in this segment, were set in late spring. Small and medium-sized converters also faced a shortage of the required quantities in the second half of May because of their distribution among larger customers. PC shipments from South Korea were the way out of the situation.

 

Asian PC is more affordable than European material. In addition, most producers are free to provide the required quantities, with the exception of companies that set quotas for shipments to Russia (e.g.,Mitsubishi Engeneering Plastics).

 

To date, some converters anticipate disruptions in shipments of European material because of the tense political situation. Kazanorgsintez, the only domestic PC producer, has headed for a gradual imports substitution and promotion of its material into the domestic market by cutting exports. However, having a production capacity of 65,000 tonnes per year, the plant will be unable to meet all the need of the extrusion segment, which ranges between 80,000-90,000 tonnes.

 

At present, the market starts to prepare for the second surge in demand for extrusion grade PC in September. This spring"s situation is expected to be repeted on the back of a scheduled outage for maintenance at Kazanorgsintez from 17 July to 20 August. Thus, the shortage of available material is likely be replenished by Asian shipments.