New PMMA plant for Novokuibyshevsk - Issue 236 || SANORS-plans to construct large chemical complex - Issue 268 || Russian cracker feedstocks - Issue 268 || Ricoal plans coal based chemical complex in Rostov region - Issue 268 || SIBUR, updated Q1 2013 results - Issue 271 || Nizhnekamskneftekhim, Jan-Jun 2013 - Issue 273 || Ukrainian organic chemicals, Apr-Jun 2013 - Issue 273 || Synthos, Jan-Jun 2013 - Issue 274 || Eastern Petrochemical Company-challenges faced in completion of refinery & cracker - Issue 274 || Nizhnekamskneftekhim-FEED for new cracker - Issue 274 || Tobolsk-Neftekhim, gas fractionating plant - Issue 274 || Russian phenol sales & production, Jan-Jul 2013 - Issue 274 || SIBUR, paraxylene costs - Issue 274 || Alko-Naphtha-PTA - Issue 274 || Polief-PET expansion - Issue 274 || United Petrochemical Company-PET project - Issue 274 || Metafrax, ammonia and urea projects - Issue 274 || Unipetrol-Ineos licence for Innovene HDPE plant - Issue 275 || Russian chemical industry projections 2013 - Issue 275 || Gazprom-Belogorsk gas-chemical & helium project - Issue 275 || Nizhnekamskneftekhim, polyolefin projects - Issue 275 || Russian benzene, Jan-Sep 2013 - Issue 275 || Russian paraxylene-PTA - Issue 275 || Nizhnekamskneftekhim-isoprene rubber - Issue 275 || TVK-butadiene project construction - Issue 275 || Russian investment in the gas-chemical industry - Issue 278 || Vyngapur to become centre for natural & associated gas - Issue 278 || VNKH-loan approved for Nakhokda petrochemical project - Issue 278 || LUKoil-Budyennovsk petrochemical investments - Issue 278 || Russian chemical production 2013 - Issue 278 || Novatek expandsf Purovsky gas condensate plant - Issue 278 || Russian styrene market 2013 - Issue 278 || Russian polycarbonates 2013 - Issue 278 || Russian synthetic rubber production 2013 - Issue 278 || Russian butanols production 2013 - Issue 278 || United Petrochemical Company-epuxy resins - Issue 278 || Russian butanol exports, Jan 2014 - Issue 279 || Stavrolen could be down for a while - Issue 280 || Omsk Kaucuk, fire and stoppage of phenol-acetone production - Issue 280 || Khimprom-MDI project - Issue 280 || Rosneft-Angarsk methanol project - Issue 280 || VNHK Nakhodka - Issue 280 || Vyngapur to become centre for natural & associated gas - Issue 280 || Russian pentanes, Jan-Feb 2014 - Issue 280 || Russian propane, Jan-Feb 2014 - Issue 280 || Grupa Azoty 2013 - Issue 280 || Synthos-Brazil - Issue 281 || Ukraine-financial performance chemcal companies 2013 - Issue 281 || Russian ethylene market, Q1 2014 - Issue 281 || Russian polypropylene, Q1 2014 - Issue 281 || Khimprom Novocheboksarsk project investments - Issue 281 || Crimean Titan, Q1 2014 - Issue 281 || Crimean Soda, Q1 2014 - Issue 281 || Ukrainian chemical market - Issue 281 || Turkmenistan polyolefin project - Issue 281 || Synthos-Q1 2014 - Issue 282 || Grupa Azoty investment projects - Issue 282 || Russian chemical production, Q1 2014 - Issue 282 || Prospects for Irkutsk petrochemical projects after Russian-Chinese gas deal - Issue 282 || Russian PTA import duties - Issue 282 || SIBUR-Sinopec jv for rubber production in China - Issue 282 || KZSK Silicon credit line - Issue 282 || UzIndoramaGasChemical - Issue 282 || Zapsibtransgaz-Gubkinsky - Issue 284 || Azoty-Akron - Issue 284 || Irkutsk Oil Company-Power of Siberia - Issue 284 || VNKH-Nakhodka - Issue 284 || United Petrochemical CompanyAlpek PTA & PET jv - Issue 284 || Gazprom neftekhim Salavat-acrylic project - Issue 284 || Nefis Cosmetics 2013 - Issue 284 || Air Products-new industrial gas project at Rostov - Issue 284 || Khimprom-Novocheboksarsk - Issue 284 || Uzbek petrochemical projects - Issue 284 || Turkmen PVC project - Issue 284 || SIBUR-Kstovo, ethylene expansion - Issue 285 || Russian ethylene and propylene - Issue 285 || Russian synthetic rubber market - Issue 285 || Khimgrad-Kazan expansion plans - Issue 285 ||



Polymers, Rubber & Chemicals


Latest issues of CIREC Monthly News for December 2014 (no 288 and CIS Chemical Industry News (no 48) available from 28 November

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Shchekinoazot lays foundations for new methanol project

Uzbek petrochemical projects updated

Poland's chemical production for Q2 2014 updated

Gazprom's Belogorsk gas & chemical complex to benefit from Power of Siberia

Russian chemical & petrochemical production totals for Q1 2014 available on CIREC’s Statistical Database

Poland's chemical production available on CIREC’s Statistical Database

Central European Chemical Industry News.  Contact us if you wish to receive the report regularly

**Russian plant capacity data from 2010 to 2025 is now available on CIREC’s Statistical Database

This unique source shows current product capacity levels by producer for over 40 main chemical products in Russia, showing the changes that can be expected in the next decade.  New projects are added when there is a realistic prosoect of new capacity materialising.


Chemical Market & Project News, Dec 2014



Central & East Europe

Russian chemical trade Q2 2014

TVK reports improved results for Q2 2014

Ukraine-chemical markets 2014

Orlen to construct additional propylene unit

Crimean soda ash and titanium dioxide plants

Central European butadiene projects

SIBUR increases profits in first half of 2014 by 32.8%

Grupa Azoty increases turnover in Q2 2014 following consolidation

Russian methanol projects, 2014-2020

PCC Exol agrees new ethylene oxide contract with Orlen

Prospects for Irkutsk petrochemical projects after Russian-Chinese gas deal

Synthos improves profatibility in second quarter despite weak rubber markets

web analytics

Russian Petrochemical Monthly Statistics Available on Request from CIREC

By Producer & Volume

Benzene Ethylene
Propylene Methanol
Phenol Styrene
Toluene Orthoxylene
  • Synthos outlines ambitious investment plans up to 2018

  • Slovnaft completes set-up for logistics for new LDPE plant

  • Ciech bought by KI Chemistry, questions remain over Organika-Sarzyna

  • Grupa Azoty Kedzierzyn embarks on coal-fired power project

  • Russian trade deficit in chemicals declines from $6.9 billion to $6.3 billion in Jan-Apr 14

  • Gazprom announces tender for FEED for the Amur gas-chemical complex

  • Irkutsk Oil Company receives approval for gas processing plant at Ust-kut

  • Purovsky-Tobolsk gas liquid pipeline completed, allowing increased in input

  • SIBUR’s overall profits improve in Q1 2014, although petrochemicals were flat

  • Stavrolen aims to restart Budyennovsk cracker by January 2015

  • Kazan silicon project starts construction in June with 2016 set for completion

  • Nizhnekamskneftekhim remains largest methanol consumer in Russia

  • Ukrainian polymer imports decline due to economic difficulties

  • Promsintez increases merchant sales of nitrobenzene in 2013

  • Russian FAS examines domestic soda ash market, pressure for duties?

  • Evonik entering oil field chemicals market in Russia

  • Metafrax sets targets for increases in captive usage of methanol

  • Naftan plans to construct MTBE plant at Novopolotsk

  • Crimean Soda faces uncertain future, Bashkir Soda could buy assets from GDF

  • Russian PVC imports decline 47% IN Jan-May 2014

  • Sberbank and AzMeCo agree financial terms to support further development

  • Ineos signs license agreement for Turkmenistan polyolefin project


  • Russian Chemical Company Reviews 2013

    (contact us for details)

    Nizhnekamskneftekhim Kazanorgsintez
    SIBUR Togliattiazot
    Gazprom neftekhim Salavat Metafrax
    Kuibyshevazot Shchekinoazot
    SDS Azot Kemerovo Kaustik Volgograd
    Sayanskkhimplast Bashkir Soda
    Sterlitamak Petrochemical Plant Nefis Cosmetics
    TVEL Galopolymer


Russian Petrochemical Prices November 2014



Condition Supply Point Roubles per ton, inc VAT
Severstal FCA Koshta 47,000
Angarsk Polymer Plant FCA Sukhovskaya n/a
West Siberian MK FCA Novokuznetsk 46,600
Novokuznetsk MK FCA Lipetsk 40,710
SIBUR-Kstovo FCA Kstovo Maintenance
Gazprom Neft FCA Kombinatskaya 43,500-44,500
Gazprom neftekhim Salavat FCA Salavat n/a
Ufaneftekhim FCA Zagorodnaya n/a
Uralorgsintez FCA Chaikovsky Maintenance
Kirishinefteorgsintez FCA Kirsihi 42,500-43,500
Chelyabinsk MK FCA Chelyabinsk n/a


Angarsk Polymer Plant FCA Angarsk n/a
Gazprom neftekhim Salavat FCA Salavat 62,700-63,700
SIBUR-Khimprom FCA Perm 67,000
Plastik (Uzlovaya) FCA Uzlovaya 67,000
Nizhnekamskneftekhim FCA Bikliyan n/a


Metafrax FCA Gubakha 14,750-15,930
Togliattiazot FCA Togliatti 14,100-16,500
Shchekinoazot (to 500 tons) FCA Kaznacheevka 20,000
Shchekinoazot (500-1000 tons) FCA Kaznacheevka 16,500
Shchekinoazot (1000-5000 tons) FCA Kaznacheevka 14,000
Sibmetakhim FCA Tomsk 13,000-15,000
Azot Novomoskovsk FCA Novomoskovsk 15,694


Gazprom neftekhim Salavat FCA Salavat 50,500
SIBUR-Khimprom FCA Perm 53,500
Angarsk Petrochemical FCA Angarsk 42,000
Azot Nevinnomyssk FCA Nevinnomyssk n/a


Gazprom neftekhim Salavat FCA Salavat 50,370
SIBUR-Khimprom FCA Perm 47,500
Angarsk Petrochemical FCA Angarsk 36,000


Kirsihinefteorgsintez FCA Kirsihi 37,500
Gazprom Neft FCA ???? 34,500
West Siberian MK FCA Novokuznetzk 33,500-34,000
Slavneft-Yanos FCA Yaroslavl 38,000
LUKoil-NNOS FCA Perm Maintenance
Kirsihinefteorgsintez FCA Kirsihi 35,300
Ufaneftekhim FCA Ufa 34,000
Gazprom Neft FCA Omsk 34,500


Omsk Kaucuk FCA Omsk Maintenance
Kazanorgsintez FCA Kazan 78,500-79,000
Samaraorgsintez FCA Samara 79,060
Ufaorgsintez FCA Ufa 75,000


Omsk Kaucuk FCA Omsk Maintenance
Kazanorgsintez FCA Kazan 42,480
Samaraorgsintez FCA Samara 42,000
Ufaorgsintez FCA Ufa 42,000


SIBUR-Neftekhim FCA Igumnovo 54,000
Nizhnekamskneftekhim FCA Bikliyan 53,100
Kazanorgsintez FCA Kazan 50,740

MOL, Jan-Sep 2014

The MOL Group generated an EBITDA of Ft 164 billion (or $696 million) in the third quarter, 72% up on the previous quarter due mainly from a huge improvement in downstream performance and a slight rise in the upstream sector.  However, for the first three quarters the EBIDTA dropped from Ft 363.8 billion against Ft 393.3 billion in the same period in 2013.  Slovnaft’s losses were cited as the main cause behind the lower results. 

In the third quarter MOL’s performance in the downstream sector benefited from improving markets, including seasonally higher sales volumes and improving margins for petrochemicals.  The improvement of Brent-Ural differential by close to $1.5/bbl was a major factor in the third quarter improvement.  Whilst the Hungarian market continues to show growth MOL has experienced a steep contraction on the local market in Slovakia in the third quarter.  The construction of the Friendship-1 pipeline is expected to be finalised by the end of Q4 2014.  Test runs are scheduled during Q1 2015, while full scale commissioning is expected from Q2 2015.  The reconstruction ensures that both Danube and Bratislava refineries can be fully supplied from the Adriatic Sea.

Regarding investments, construction of the 130,000 tpa butadiene extraction unit is on schedule.  It is expected to reach commissioning phase in Q1 2015 and start commercial operations during Q2 2015.  The unit will produce feedstock material for the production of synthetic rubber where construction of a new unit is underway. 

The construction of Slovnaft’s 220,000 tpa LDPE4 unit at Bratislava is progressing according to schedule.  The overall completion level is rated above 70%, as of the end of September.  The new plant is expected to be commissioned by the end of 2015.  The new unit will increase production flexibility, improve product qualities and ensure higher naphtha off-take from the refinery.

TVK, Jan-Sep 2014

Despite maintenance shutdowns impacting on sales volumes for olefins, HDPE and polypropylene TVK increased its EBIDTA in the period January to September 2014 from Ft 20.505 billion last year to Ft 29.125 billion.  Furthermore, the Ft 19.1 billion operating profit in the first three quarters of 2014 exceeded the same period in 2013 by Ft 8.8 billion.  Favourable exchange rates combined with decreasing energy prices helped the improvement in results. 

Reduced energy costs by Ft 3.9 billion from lower natural gas and steam, combined with a drop in the electricity price, compensated for the 1% rise TVK’s raw material costs for the first three quarters.  Another Ft 1.6 billion was received from the insurance compensation from the fire accident at the LDPE-2 unit during 2012 and the land property sale, where the new synthetic rubber plant will be constructed.  On the negative side TVK has not received an income from CO2 quota sales, whereas in 2013 the company received Ft 327 million.  In the first half of 2014 TVK carried out maintenance turnarounds in Olefin-1, HDPE-2 and PP-4 units.

TVK’s total debt of the company increased by Ft 4,187 million in the third quarter due mainly to the financial requirements attached to butadiene-extraction project.  Equipment has been delivered and is being installed, together with the necessary infrastructure, and the company aims to start production in first half 2015.  TVK achieved 47% of its sales revenues from export sales in January to September 2014. 

Slovnaft, Jan-Sep 2014

The completion of the new LDPE plant at Bratislava may help Slovnaft to revive earnings in petrochemicals which have not increased in recent years and only remain around 10% of total income.  Revenues for the third quarter this year from petrochemicals surpassed the previous two quarters in 2014, but still were lower than in the same period in 2013.  Overall, Slovnaft recorded a loss of €1 million in the first nine months in 2014 against a profit of €43 million in the same period last year.   

The result was affected partly by turnarounds and as a result net sales of Slovnaft for the period January to September fell by 16% to €3.03 billion.  The company invested €147 million in projects, 234% up on 2013 and mostly directed towards petrochemicals. 

Central European oil supply

Central European Refining Volumes

(unit-mil tons)


Jan-Sep 14

Jan-Sep 13







Lukoil Bourgas



Lukoil Ploiesti



MOL Hungary



























Refining volumes remained virtually the same in the first three quarters in Central and South East Europe, at 54.8 million tons.  Margins have improved in recent months due to lower oil prices.  Lotos recorded a margin of $6.87 per barrel in October, a dollar less than in September and the same as in August.  For the period January to October 2014 the refining margin increased by 23.8% over 2013 to $5.55 per barrel.  However, Grupa Lotos generated a net loss in the third quarter, affected by trading commodities and the dollar.  Grupa Lotos increased revenues by 5% to zl 7.55 billion in the third quarter, and 4% overall for January to September 2014 to zl 21.9 billion. 

In Lithuania Orlen Lietuva s also noticing the positive effects of efforts to raise economic efficiency of operations and capacity to flexibly adjust to market conditions.  Orlen Lietuva’s EBITDA amounted to $54 million in the third quarter in 2014, indicating improvement. 

Construction of the first phase of the PERN oil terminal at Gdansk is approximately 30% completed.  Structural work is being undertaken on tanks, whilst pumping stations, pipelines and treatment plants remain at the early stage of development. 

Total storage capacity of the PERN terminal comprises 700,000 cubic metres, of which 400,000 is devoted for crude oil and 300,000 for other products.  Part of the fuel and chemical terminal will be connected to the national transmission network Naftoport oil.

HIP Petrohemija, ethylene restart & PP project

HIP Petrohemija is examining prospects to construct a polypropylene plant at Pancevo.  The necessary investment in the project is estimated at about €120 million, and comprising a capacity of 85,000 tpa.  Questions over finance are yet to be resolved.

Petrohemija restarted ethylene production at Pancevo on 10 November after a two-month planned outage.  LDPE and HDPE units were restarted on 11 November.  During the shutdown Petrohemija modernised the manufacturing systems and controls, and undertook repairs of equipment.  A recent agreement of debt repayment of $225 million by Serbia to Russia in three tranches has allowed Russian gas deliveries to restart in full and was important to allow Petrohemija to restart production.  Naphtha is supplied to Petrohemija by NIS, owned by Gazprom-Neft. 

Oltchim, Jan-Sep 2014

Oltchim’s turnover increased in the first nine months to 436 million lei, 21% up over the same period last year and close to the total sales of the whole plant in 2013, which was 497 million lei.  Oltchim was declared insolvent on 30 January 2013.

Increasing production and regaining markets (mostly foreign) have been achieved gradually, with turnover increasing every month from €5.4 million in February 2013 to €14.2 million in September 2014.   The Valcea plant is strongly dependent on deliveries to foreign markets, where they account for almost 70% of production, especially in the European Union, Turkey and the Middle East.  Exports showed a 40% increase in the first nine months compared to the same period in 2013, thus enabling higher utilisation in production capacity.

Oxo alcohol production restarted at Ramnicu Valcea in September 2014 after being closed in 2012.  However, feedstock problems have since interrupted production and the plant has been forced to stop on two occasions.  Propylene was agreed for delivery from Lukoil, but shipments were suspended due to a lack of payment.  Oltchim has been in talks with MOL regarding propylene supply. 

Synthos, Jan-Sep 2014

Synthos achieved a higher operating profit in the first three quarters in 2014 despite lower revenues and difficulties in the rubber industry.  For January to September 2014 Synthos recorded an operating profit of zl 392 million, zl 43 million more than in 2013.  Net profit was lower by zl 16 million and amounted to zl 291 million.  

In the third quarter of 2014 the S-SBR project at Oswiecim continued construction, including the production hall.  Synthos has prepared the foundations for future warehouses, and in addition, the assembly of tanks butadiene and assembly work of wrapping pipelines, tanks and pumping butadiene.  The new 90,000 tpa plant is based on Goodyear technology and is scheduled to start in 2015.  The new plant will also be capable of producing polybutadiene rubber.

Grupa Azoty, Jan-Sep 2014

Grupa Azoty achieved a net profit of zl 8.946 million in the third quarter this year against zl 213,000 in the same period last year.  The EBIDTA for the three month period was zl 1.26 million against zl 1.11 million in 2013.  In terms of sectoral performance plastics continued to perform badly, with losses recorded for the first three quarters as last year.  The plastics division recorded an operating loss of zl 18.5 million in the third quarter against a loss of zl 33.9 million.  The chemical division performed better than plastics, and showed a 15.7% increase. 

Despite the higher rate of increase in cost of sales and general and administrative expenses compared to the growth rate of sales revenue, Grupa Azoty generated a positive result on the sale and consequently the financial period ended with a net profit.  Regarding product sectors caprolactam demand remains low due to an oversupply in China.  Even so prices for liquid capro9lactam rose in the third quarter to an average of €1953/ton against €1878/ton in the same period in 2013   Prices for crystalline caprolactam dropped from $2351/ton to €2265/ton.  Compared to the same period last year there was a fall in average quarterly prices of the products of 2-EH and DEHP, while the remaining average prices increased.  

The downturn in fertilisers in the third quarter had a significant effect on Azoty’s results.  However, the improvement in the plastics sector helped compensate for the downturn in fertiliser sales.  The plastics division covers the manufacture and marketing of polybutylene terephthalate, polyamide 66/PA66, caprolactam; etc.  The chemicals division covers the manufacture and sale of products: oxo alcohols (2-ethylhexyl, n-butanol, isobutanol, octanol F), plasticizers (DEHP, DIBP, DPHP, DEHT), titanium dioxide, Tytanpol, melamine, maleic anhydride, AdBlue, etc.  The energy division covers the activities related to the production of electricity and heat to the needs of chemical plants as well as the sale of electricity to customers connected to the grid. 

By individual Azoty subsidiary, ZA Pulawy performed well in a difficult environment.  The plant is the largest single consumer of gas in Grupa Azoty and recorded a net profit of zl 3 million in the third quarter.  Revenues increased to zl 850 million from zl 840 million in the same period last year, due mainly to sales of nitrogen fertilisers. 

For ZCh Police titanium white price trends remain a structural problem for the company, but due to other strategic factors such as raw material supply in Senegal the company has recorded profits in the first three quarters.  Oversupply of titanium dioxide has resulted in falling prices in 2014.  The raw material for titanium dioxide, ilmenite, saw prices also fall.  After three quarters of 2014 Azoty Police Group generated a profit of zl 64 million against zl 83 million in the same period last year. 

ZAK achieved an operating profit of zl 11 million in the third quarter, the weakest quarter of 2014.  However, the company continues to showed progression with the profit for the third quarter amounting to zl 8 million against zl 3 million last year.  Revenues totalled zl 1,534 million for the period January to September 2014, zl 14 million down from the same period last year.  The net profit was zl 78 million against zl 89 million last year.

Anti-dumping duties on Russian ammonium nitrate

After a 15-month review, the European Commission has decided to extend anti-dumping duties on imports of ammonium nitrate from Russia.  This means that for five consecutive years it will be the duty of up to €47 per ton of ammonium nitrate.  Ukraine imposed five-year duties on imports of ammonium nitrate from Russia.  Protection against dumping is essential, as long as Russia will charge lower gas prices for its own producers, and charge high prices to producers in the EU.  Ukraine has also recently imposed a five year duties on imports of ammonium nitrate from Russia.

Grupa Azoty-Senegal phosphoric acid project

Grupa Azoty Police plans to build a phosphoric acid plant in Senegal and is analysing the financial profitability of the investment.  Currently phosphates are transported from Africa to Police and the company now wants to produce the phosphoric acid on location in order to save costs. 

In August 2013 Grupa Azoty Police signed a contract to buy 55% in African Investment Group for $28.85 million.  Due to access to resources in Senegal the company has a license to access the ilmenite sand deposits Sud Saint Louis and permit the extraction of calcium phosphate deposits in the areas Lam Lam and Kebemer.  For the first bed material is predicted to be operated for around four years.  Preliminary estimates suggest that the viability of a second bed is more than 50 years.

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