Market Dynamics
Russian market of extrusion PC continues to grow
Time: 2014-11-21 Source from: mrcplast
MOSCOW (MRC) - Russia's consumption of polycarbonate (PC) was 66,500 tonnes in the first ten months of 2014, up 5% in the same period a year earlier, according to MRC ScanPlast.
Despite a weaker economy in the country and rouble devaluation, the consumption of PC granules for sheet extrusion showed steady growth.
In line with the reduction of imports (down 5% year on year) Russian converters increased the consumption of PC from the national producer Kazanorgsintez (KOS).
The share of the producer PC sheet extrusion sector increased from 63% to 67% in January-October 2014. Kazanorgsintez adopted a strategy of import substitution, and refrained from the deliveries to foreign markets and changed the production structure.
Kazanorgsintez increased the production of extrusion PC grades to 45,300 tonnes in the first ten months of the year, up 7% year on year.
The producer delivered 97% of the extrusion PC grades, made over the reported period.
At the same time, the company decreased the output of injection moulding PC almost two times in the first ten months of the year. Russian PC became more competitive compared to imported products because of the rouble devaluation.
Despite the increase in the delivery costs by Rb4/kg in November the Russian PC prices are significantly lower than the European or Asian material. The producer also gives convenient ways of payment for converters.
Kazanorgsintez recently signed an agreement with German BASF for delivery of stabilizing additives for PC production. With this connection, we can expect an expansion of the range of products and higher quality, which improves the sales.