Some Russian producers of bulk polymers increased utilization of their production capacities in February. However, overall output of polyethylene, polypropylene, polystyrene and polyvinyl chloride amounted to 219.9 kt, which can be compared with January when output was at the level of 221.1 kt.
According to Market Report Company the highest increase was recorded in polystyrene production. Nizhnekamskneftekhim and Salavatnefteorgsyntez increased utilization of production capacities; overall output of polystyrene and styrene plastics mounted to about 19 kt, last month.
In February, overall PP output went up by 7.6%, compared to January, and moved at 45.7 kt. Increasing output was, first of all, supported by exports that reached the level of 8 kt, last month.
Overall PE output went down by 2.8% to 116 kt. The main reason was the shutdown of the unit in Budennovsk (Stavrolen), as well as production problems at Kazanorgsyntez. PE production volumes are expected to go down in March due to the scheduled maintenance at Stavrolen and permanent production problems at Kazanorgsyntez.
The situation in the PVC market is far from being optimistic, as well. Recession in the construction market resulted in PVC finished goods sales slowdown and, consequently, in reduced resin consumption. Surplus stocks of Russian resin exceed the level of 50 kt.
Producers have to cut output volumes taking into account the balance of chlorine and caustic production. In February, overall PVC output dropped by 8.3%, compared to January, and went down to 40.4 kt.