Extrusion coatings sector drives Russian PE market growth

Сonsumption in extrusion polyethylene (PE) coatings sector mounted to 86 kt last year – according to just published MRC Annual report.

Five out of seven PE processing sectors demonstrated downward trends in 2009. The exceptions were extrusion coatings (+51%) and extrusion blow molding sectors (+5%). “Drop leaders” are pipe extrusion (-32%) and cable extrusion sectors (-27%).

PE consumption growth rates in the extrusion coatings sector had been very high till 2007 inclusive(48% average). Contrariwise, that sector has been demonstrating downward trend since 2008 (-36%). Consumption in that sector was growing mostly due to imports. Share of HDPE used in this sector went up by 74%; though that of LDPE decreased more than 2 times.

PE demand in steel pipes coatings went up by 64% (to 68 kt) in 2009. Extrusion coatings sector is going to remain the key driver of PE market growth in view of resumed works on oil and gas projects (Eastern Siberia - Pacific-2 and Nord Stream). It will be followed by the cable extrusion sector; and the film extrusion sector will be the third attractive sector in the Russian PE market.