Russia Petrochemicals Report Q4 2017
The renewal of US sanctions has scuppered Russian hopes of growing trade, which would have given the petrochemicals industry and the wider economy a significant boost. Nevertheless, stable oil prices have enabled the industry to take advantage of access to competitive locally available naphtha feedstock while the low value of the rouble has acted to protect industry from external competition. While the Russian market is seeing a slow recovery, it is not expected to go into recession and some petrochemicals sectors will experience above-trend growth. Domestic growth and external competitiveness could be enough to secure Russian petrochemicals output growth over coming quarters.
In H117, Russian polypropylene (PP) production grew 4% y-o-y to 715,800 tonnes, while production of polyvinyl chloride (PVC) grew 26% y-o-y in 7M17 to 530,800 tonnes, according to MRC's ScanPlast report. The strong growth in PVC was largely due to the resumption of operations at SayanskKhimPlast, which was taken offline in February-July 2016. Production of high density polyethylene (HDPE) in Russia decreased to about 500,400 tonnes in H117, down 0.4% y-o-y, due to a decrease in output at Gazprom neftekhim Salavat and Nizhnekamskneftekhim.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.Download eBook