MOSCOW (MRC) - Consumption of polycarbonate (PC) in Russia decreased to 38,000 tonnes in January-May 2015, down 27% year on year, according to MRC ScanPlast.

 

The rush in the Russian PC market decreased in the late May, giving the opportunity to summarize the results of "greenhouse" season.

Producers of PC sheets said that purchasing activity was quite high, despite the economic crisis. Sales volumes in real terms increased but in money terms - declined. 

 

The demand for PC in the beginning of the season (end of April - the first half of May) was seen from the private households, retail and small wholesale. Large wholesale this year showed weaker demand. Also, converters expect orders from government: the construction of stadiums in preparation for the football championship, roads, storage facilities.

 

Demand from the construction segment has improved since September. Autumn season lasts until the first snow. In May, the converters reported disruptions and delays in deliveries of Russian PC, some even reported the deficit in the market. This situation resulted from the collapse of external supplies twofold this year because of the rouble devaluation.

 

Imports of PC granulate was only 8,600 tonnes in the first five months of the year. The sharp rise in the extrusion PC granules prices in Europe, which has been seen since April due to force majeures on production of phenol, did not affect the Russian market in May. However, prices for European PC are expected to rise in June. The low end of PC granules price in Europe has reached EUR2,450/tonne FD NWE.

 

Kazanorgsintez (KOS), the only PC maker in the CIS, has produced 29,400 tonnes in the first five months of the year. At the same time, the share of the extrusion grades from the producer"s output over the reported period occurred for 88%. Despite the adoption by the import substitution policy and refusal to supply to foreign markets, the producer can not fully meet the market demand  due to limited capacity.

Iranian PC granules were not delivered in Russia in May. 

 

At this stage it is not known further development of cooperation between Russian converters and Khuzestan Petrochemical (Sirjangostar Global Group). Most companies do not hurry to buy Iranian products.