06 марта 2010

Massive increase in PP capacity / Expansion squeezes imports / Demand continues to rise

Russia`s polypropylene production capacity could reach 1.5m t/y over the next four years, rising from 300,000 t/y at the end of 2006. Several new plants have recently started production in the country, reducing its reliance on imports in an industry where demand remains strong, with growth rates of around 10% - 15% over the next few years. According to information published by the German Office for Foreign Trade (bfai, Cologne / Germany; www.bfai.de), imports have accounted for over a third of industrial PP demand in the country recently. But the additional new output, and with plans to build more capacity, leads market researchers at bfai to predict that market conditions will get more difficult for importers. However, industry sources fear that overcapacity may put pressure on prices.

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