Russia: Stretch-film market rising

Russian producers of stretch-films increased output volumes this year – MRC’s analysts reporting. Overall output of stretch-films exceeded 30 kt over the course of the seven months.

Last year, output of PE stretch-films moved at about 55 kt. Last year, the devaluation of the RUB against the US$ caused serious financial losses to converters. Today, some companies have managed to increase output volumes. Lava, Nova Roll-Stretch, Uralplastik and Stretch increased production. Taking into account current utilization of production capacities, output of PE stretch-films might rise by 10-15% in 2009.

The increased LLDPE output by Russian producers allowed converters to be less dependent in PE imports. However, the share of imported LLDPE is still exceeding 70%. Together with the increasing PE production in Nizhnekamsk, the share of imports may go down to 50-60%.