PE market recovering gradually

In Q1 2010 PE consumption formed 363 kt which is nevertheless smaller than same period in 2008 ( 4%), but still exceeds the volumes of 2009 (by 25%) – according to MRC Annual reports.

Before the crisis the Russian PE market was growing average 15% a year. By MRC Annual reports fall in PE market formed 14% inn 2009. In Q3 2009 demand for PE recovered almost to the pre-crisis level.

The demand is growing for the material made in Russia and abroad. Domestic producers return to the Russian market: the supplies went up by 26% comparing with same period in 2009 (about 320 kt), exports decreased 35% (to 80 kt). Imports grew by 27% at the beginning of the year, comparing with Q4 2009. European material became especially attractive in conditions of falling EURO, as increase of supply from Germany, Belgium and Austria is being observed last months.

Stable growth of PE production in Russia is definitely a positive factor: almost 400 kt (6% more than in Q4 2009) were produced in Q1 2010. In 2009 PE production totaled over 1415 kt, 111% more than in 2008. In January Nizhnekamskneftehim was launched. Total volumes formed over 130 kt.