Polish imports of crude oil Jan-Oct 2023

Poland imported 21.458 million tons in the first ten months in 2023 at an average price of €534.7 per ton.  Saudi Arabia supplied 9.785 million tons at an average price of €568.5 per ton followed by Norway which supplied 7.103 million tons at an average price of €556.7 per ton.   As part of its diversification strategy, the Orlen Group is building its import portfolio based on oil supplies from the North Sea, West Africa, the Mediterranean, as well as the Persian and Mexican Gulfs. By the end of 2023, Naftoport's crude oil transhipment through Gdansk are expected to exceed 36 million tons.  Not only does this provide oil for Polish refineries but also the Schwedt refinery in east Germany where utilisation is now close to 80%. 

Druzhba crude-Central Europe

Czech imports of Russian crude amounted to 6.212 million tons in the first ten months in 2023 of which Russia supplied 3.727 million tons and Azerbaijan 1.623 million tons.  Average prices overall amounted to €615.6 per ton, with prices from Russia averaging at €559.8 per ton. 

The Czech Republic increased oil imports via the Druzhba pipeline to 65% of total purchases in the first ten months last year, up from 56% in the same period in 2022.  This is attributed to the price cap that made Russian crude cheaper than other sources, although the trend weakened as the year progressed. 

In the second half of 2023 sanctions on Russian oil became largely ineffective, in terms of preventing the accumulation of funds for military expenditures against Ukraine.  Hungary’s average price for crude imports in the first three quarters in 2023 amounted to €436.751 per ton, mainly helped by the price cap on Russian crude.  However, by September Russian crude prices had risen to €565.821 per ton which is comparable to other sources. 

Questions remain why MOL not seeks alternative sources if the price advantage of buying from Russia has been eroded.   MOL’s purchases of crude from Russia in January to September amounted to 3.503 million tons from the total of 4.709 million tons, thus accounting for 72.8% of supply.  The Adria is seen the key alternative to the Druzhba for Hungary and Slovakia.  MOL claims that it is taking actions to reduce its oil supply dependency on Russia but there seems no undermining urgency.  The MOL Group moreover has access to state reserves which enables it to supply its markets in case of interruptions of the Druzhba pipeline. Central European petrochemical production and trade.

 Central European ethylene production Jan-Sep 2023

Ethylene production in Central Europe amounted to 327,800 tons in the third quarter last year, which may have been up from 322,000 tons in the second quarter recorded between April to June but was way down from 406,600 tons in the third quarter in 2022.  Production falls last year were influenced by lower demand combined with higher costs.  Both MOL and Orlen groups have undertaken extended maintenance in all twelve months and thus all plants in the Visegrad region recorded lower production than in 2022.   Overall production of ethylene in the first three quarters in 2023 amounted to 1.001 million tons against 1.246 million tons in the same period in 2022. 

The ongoing construction of Orlen’s Olefiny 111 complex at Plock is the major development in this region and from the wider European perspective represents the largest petrochemical investment in the last twenty years.  During the construction of the Olefiny III Complex, the latest technologies will be used with the focus on tackling some of the product supply/demand deficits that exist in Poland. 

Regarding the construction process around 21 local companies are working on the project, and after completion the complex will offer job opportunities of around 1,500.

Central European propylene production Jan-Sep 2023

Propylene production in Central Europe amounted to 222,600 tons in the third quarter in 2023, which was up from 206,900 tons in the period April to June last year, but down from 257,800 tons achieved in the third quarter in 2022.  Both MOL and Orlen groups have undertaken extended maintenance in the past year and thus all plants recorded lower production in 2023 than in 2022.   Overall production of propylene in the first three quarters in 2023 amounted to 445,200 tons against 515,000 tons in the same period in 2022 and 537,400 tons in 2021. 

Central European petrochemical prices

Petrochemical import prices in Poland all showed lower numbers in 2023 against 2022, due to a combination of lower feedstock costs and weak demand.   Propylene in particular showed a downward trend from the start of 2023 into the fourth quarter.   Elsewhere in Central Europe Czech propylene import prices followed a similar pattern to Poland, whilst Hungarian export prices held a much a higher line.  MOL sold propylene at €921 per ton in January and was still selling at €942 in October, which was much higher than the Polish import price of €722 per ton.  MOL exports nearly all of its propylene to Slovakia.

Despite overall production constraints by some producers, the availability of propylene in Europe has been sufficient and overall appears to exceed demand.  Limited storage capacities at producers resulted in propylene being sold on the spot market at the end of the second quarter with discounts reaching up to 50% of the contract price.  Demand for propylene for derivatives remains low into the fourth quarter with only limited signs of that a market upturn is likely in the first part of the new year. 

Poland-petrochemical production Jan-Oct 2023

Orlen reduced ethylene production at Plock in the first ten months in 2023 to 246,800 tons from 317,700 tons in the same period in 2022.  Propylene production at Plock dropped from 352,800 tons to 239,200 tons.  Butadiene production at lock dropped from 53,000 tons versus 43,000 tons in January to October 2023.

Polish propylene imports Jan-Oct 2023

Imports of propylene into Poland dropped in the first ten months in 2023 to 84,856 tons against 91,902 tons in the same period in 2022. 

Average prices dropped from €1287.1 per ton in January to October 2022 to €912.7 per ton in the first ten months in 2023.   To compensate for the drop in imports from Russia and Ukraine (where propylene production was suspended at Karpatneftekhim following the Russian invasion), Poland started to receive deliveries from other regional countries in East Europe.  Germany supplied 38,065 tons in the first ten months followed by the Netherlands with 16,677 tons and Bulgaria with 13,119 tons.  Propylene from Bulgaria came from the Bourgas refinery.

Polish butadiene imports Jan-Oct 2023

Poland imported 69,763 tons of butadiene monomer in the first ten months in 2023, versus 79,598 tons in the same period in 2022. 

Imports from Hungary fell from 30,247 tons in January to October 2022 to 17,981 tons in January to October 2023, whilst shipments from Austria fell from 25,922 tons to 25,173 tons.  Average butadiene prices dropped from €1202.6 per ton in January to October last year to €908.6 per ton.   

Hungarian propylene exports Jan-Oct 2023

Hungarian propylene exports amounted to 62,988 tons in the first three quarters in 2023, most of which went to Slovakia at an average price of €911.2 per ton. 

Propylene production by Slovnaft is not sufficient to maintain high utilisation rates for polypropylene and additional supplies need to be purchased.  Slovnaft in Slovakia is currently upgrading its steam cracker unit which should increase the capacity for propylene production. 

Czech monomer trade, Jan-Oct 2023

Propylene imports into the Czech Republic increased from 32,349 tons in January to October 2022 to 39,725 tons in the same period in 2023.  Germany supplied 33,977 tons in the first ten months, up from 32,349 tons.  Other suppliers included Bulgaria from which the Czech Republic purchased 3,742 tons and Romania where volumes amounted to 1,048 tons.  Average prices for Czech propylene imports dropped from €1435.3 per ton in the first ten months in 2022 to €918.5 per ton in 2023.   Propylene is imported by the Czech Republic to support production at Litvinov where most propylene is converted into polypropylene. 

Ethylene exports from the Czech Republic amounted to 12,369 tons in the first ten months in 2023 against 11,094 tons in the same period last year, whilst ethylene imports rose from 16,034 tons to 28,745 tons.

Germany supplied 28,497 tons of ethylene to Czech Republic in the first ten months in 2023 at a cost of €26.728 million.  This compares against 15,898 tons in the same period in 2022. 

Czech imports of butadiene in the first ten months this year increased from 56,319 tons to 57,584 tons, supplementing butadiene production at Kralupy.  Germany supplied 42,440 tons for €36.094 million, followed by Hungary which supplied 14,908 tons for €12.493 million.

Central European styrene trade Jan-Oct 2023

Poland imported 60,761 tons of styrene in the first ten months in 2023 versus 84,318 tons in the same period in 2022.  Prices for styrene monomer and ethylbenzene both tended to drop in 2023 in line with lower energy and feedstock costs.  Synthos is the main Polish consumer of styrene and ethylbenzene.   Styrene consumption fell last year due mainly to lower SBR production.

The Netherlands reduced styrene shipments to Poland from 46,841 tons in January to October 2022 to 28,386 tons in the same period in 2023, whilst for the same timeframe imports from Germany dropped from 14,249 tons to 10,919 tons.  Cost prices for styrene averaged €1130.8 per ton in January to October 2023 against €1599.7 per ton in the same period in 2022.  The decline in styrene prices reflects the same trend in import prices across the board for mainstream chemical raw materials which were sold into Poland and neighbouring countries over the course of 2023.   

Styrene imports into the Czech Republic amounted to 26,816 tons in the first ten months in 2023, rising from 13,019 tons in January to October 2022.  Costs averaged €1123.2 per ton in January to October 2023 against €1703.1 per ton in the same period in 2022.  Styrene is used predominantly by

Hungarian styrene imports amounted to 55,419 tons in the first three quarters in 2023 against 76,595 tons in the same period in 2022, with average prices dropping from €1723.5 per ton to €1395.8 per ton in January to September 2023. 

Italy supplied 66,410 tons of styrene in January to September 2022 which fell to 50,930 tons in the same period last year.  Styrene in Hungary is used for the production of polystyrene by Versalis at the Szazhalombatta plant. 

Poland-polyethylene market Jan-Oct 2023

Polyolefin trade into and out of Poland experienced declines in the first ten months in 2023, with nearly all grades of polyethylene and polypropylene affected by weak demand. 

Based on production and trade, polyethylene consumption amounted to 1.036 million tons in the first ten months in 2023 against 1.088 million tons in January to October 2022.  Production, exports and imports were all lower in 2023.  Poland’s consumption of polyethylene amounted to 1.291 million tons in 2022 versus 1.350 million tons in 2021.

Towards the end of the year polyethylene demand witnessed some modest improvements for HDPE, especially from pipe manufacturers.   In most cases, processors purchased polyethylene in December with a delivery condition set for January 2024.   Prices in January will depend on several factors including demand and OPEC’s latest tactical moves which could impact on oil prices.  The overall outlook for 2024 is for a more positive year than 2023.  Accordingly, inventories are at record lows across the polyolefin market chain, and this may offer the potential for a recovery at some stage in the next twelve months. 

Polish polyethylene production & trade Jan-Oct 2023

PKN Orlen and Basell Orlen Polyolefins (BOP) produced a combined total of 225,700 tons of polyethylene at Plock in the first ten months in 2023 against 271,000 tons in the same period in 2022. 

Polyethylene imports into Poland totalled 1.049 million tons in January to October 2023 versus 1.108 million tons in the same period in 2022, with average prices dropping from €1803.1 per ton to €1370.9 per ton this year. 

HDPE imports into Poland dropped from 385,022 tons to 352,749 tons in January to October 2023 whilst LDPE imports dropped from 297,472 tons to 217,441 tons.  LLDPE imports declined from 203,323 tons to 170,881 tons.  Most of the LLDPE imports were sourced from West Europe, including France, the Netherlands and Germany. 

Polyethylene exports from Poland have also dropped in 2023.  Exports decreased from 291,799 tons in the first ten months in 2022 to 238,770 tons in the same period in 2023, with average prices dropping from €1653.9 to €1360.0 per ton.  HDPE was Poland’s largest export grade amounting to 161,924 tons in the first ten months against 197,582 tons in January to October 2022.

Central European polypropylene production Jan-Sep 2023

Polypropylene production in Central Europe amounted to 732,300 tons in the first three quarters in 2023 against 790,000 tons in the same period in 2022 and 847,100 tons in the same period in 2021.  Third quarter production last year increased against the second quarter, rising from 216,900 tons to 246,900 tons but was down against the third quarter in 2022 when volumes totalled 260,800 tons.

Rompetrol Rafinare-polymer production Jan-Sep 2023

Rompetrol Rafinare produced 89,000 tons of polypropylene in the first nine months in 2023.  The target for whole year was set at the start of 2023 at 90,870 tons.  Polyethylene processing was the product group where Rompetrol Rafinare was not able to hit its targets, amounting to only 14,000 tons in the first three quarters against 77,400 tons set at the start of the year.  In 2022 Rompetrol Rafinare produced 86,404 tons of polypropylene, and 55,000 tons of polyethylene.

HIP-Petrohemija polymer exports Jan-Sep 2023

In the first three quarters in 2023 this year export revenues from polyethylene for HIP Petrohemija in Serbia dropped to $89.4 million against $156.2 million in the same period in 2022.  This was due to the combination of lower polyethylene prices and also lower export activity, with shipments dropping from 92,558 tons in January to September 2022 to 73,515 tons.

Polimery Police loan required to cover delayed start-up period

Grupa Azoty Polyolefins signed an agreement with financial institutions in December concerning the investment in Polimery Police which has faced financial difficulties in project completion.  The parties agreed on further terms and conditions under which the institutions will provide funding for the completion of the project.  The signed agreement provides financing for the Polimery Police project until the end of February 2024.  This helps to finance the extension of the project time following the delay by Hyundai Engineering.

The Polimery Police project is based on the Oleflex UOP technology for the production of polymer-quality propylene by propane dehydrogenation (PDH) and the Unipol GRACE technology for the production of polypropylene.  Capacities include 437,000 tpa of polypropylene and 429,000 tpa of propylene. 

Polish polypropylene production & trade Jan-Oct 2023

Polypropylene production at Plock dropped from 250,000 tons in January to October 2022 to 223,000 tons in the first ten months in 2023.  Overall consumption of polypropylene in Poland amounted to 443,700 tons in the first ten months against 556,500 tons in the same period in 2022. 

Imports of polypropylene into Poland dropped from 782,953 tons in the first ten months in 2022 versus 724,668 tons in the same period in 2023, with average prices dropping from €1830.3 to €1473.1 per ton.  Homo grade imports dropped from 512,793 tons in the first ten months last year to 464,556 tons. 

Copolymer imports into Poland fell from 249,797 tons in the first ten months in 2022 to 238,935 tons in the same period last year, with total costs falling from €489.256 million to €381.033 million.  Germany was the largest supplier of propylene copolymers to the Polish market in 2023. 

Polish exports of polypropylene dropped from 227,573 tons in the first ten months in 2022 to 181,208 tons in the same period in 2023.  Average prices for exports amounted to €1448.2 per ton in the first ten months which was down from €1905.4 per ton last year.  The largest destination for Polish homo grade polypropylene in the first ten months in 2023 was Germany which took 30,460 tons for €40.619 million followed by the Czech Republic with 24,740 tons for €29.437 million.  Other important markets in Europe included Italy, taking 11,614 tons in the first ten months in 2023 for €16.181 million followed by Slovakia with 12,400 tons for €17.482 million.

Polish polypropylene trade is expected to undergo some major changes in the next few months when the new Polimery Police plant starts to operate on a commercial basis.  The plant is currently going through its start-up procedure.

Czech polyethylene trade Jan-Oct 2023

Czech exports of polyethylene amounted to 349,978 tons in the first ten months in 2023 from 349,428 tons in the corresponding period in 2022, with average prices falling from €1919.2 per ton to €1340.2 per ton.  HDPE represents the largest category of Czech polyethylene dropping slightly from 302,060 tons in January to October 2022 to 301,233 tons. 

Imports of polyethylene into the Czech Republic declined from 267,098 tons in the first ten months in 2022 to 251,865 tons in 2023.  Average prices dropped from €1761.6 per ton to €1600.7 per ton.  HDPE imports dropped from 101,263 tons to 99,403 tons, whilst LDPE imports decreased from 103,335 tons to 87,565 tons. 

Czech polypropylene trade Jan-Oct 2023

Polypropylene exports from Orlen Unipetrol dropped in the first ten months from 259,658 tons in 2022 to 251,957 tons in 2023.  Prices dropped on average from €1532.0 per ton to €1364.9. The largest market for Czech polypropylene exports in the first ten months in 2023 was Poland followed by Germany.   

Polypropylene imports into the Czech Republic amounted to 439,972 tons in the first ten months last year against 424,520 tons in the same period in 2022, with average prices falling from €1758.8 per ton to €1599.9 per ton. 

Copolymer imports increased from 161,537 tons to 180,582 tons whilst homo polymer imports dropped from 248,270 tons to 247,269 tons.  Total costs for polypropylene imports totalled €709.527 in January to October 2023 against €820.994 million in the same period in 2022.  Copolymer imports were sourced mostly from Europe, with Germany supplying 48,423 tons in the first ten months for €88.712 million.  The largest non-European supplier was South Korea from where the Czech Republic imported 27,595 tons in January to October last year for €38.678 million. 

Orlen Unipetrol-recycled polymers

From January 2024, Orlen Unipetrol will offer recycled polyethylene (r-PE) and polypropylene (r-PP) under the Enviten® brand.  Recycled polyethylene and recycled polypropylene will be supplied under the Enviten® brand in the form of pellets in homogenized batches to ensure consistent quality for end use.  

Both products are manufactured by the Orlen Unipetrol Group in its subsidiary REMAQ in Otrokovice, which is engaged in the production and trading of recycled plastics, especially polypropylene, polyethylene and polystyrene.  Enviten® r-PE can be used for injection moulding, extrusion, and blow moulding.

Orlen Unipetrol expanded its activities in the field of chemical recycling by completing the acquisition of REMAQ last year, which focuses on production and trading with plastic recyclates, especially polypropylene, polyethylene and polystyrene.  The company operates four modern regranulation lines with a total capacity of 3,000 tons per month. 

Orlen Unipetrol Group has set the long-term target of being emission neutral by 2050 at the latest.  In the shorter term, by 2030, 15-20% of Orlen Unipetrol's petrochemical production could be generated by recycling plastic and biogenic waste.  Due to the complex relationship between virgin and recycled materials, estimating future demand cycles has become more difficult than in the past. The situation on the plastics market is strongly correlated not only with the general economic situation but also the impact of EU regulations on consumption and related environmental factors.

Hungarian polyethylene trade Jan-Sep 2023

Hungarian imports of polyethylene amounted to 168,673 tons in January to September 2022 to 168,691 tons in the corresponding period in 2023.  LDPE imports dropped from 43,245 tons to 34,699 tons whilst HDPE dropped from 77,594 tons to 65,386 tons in January to September this year.

In line with lower feedstock prices, import costs dropped from €286.962 million for polyethylene in January to September 2022 to €248.949 million in the first nine months in the same period in 2023, with average prices dropping from €1912.1 per ton to €1551.8 per ton. 

Export volumes of polyethylene from Hungary amounted to 251,711 tons in the first nine months this year versus 258,962 tons in January to September 2022.  HDPE exports decreased from 172,744 tons to 170,418 tons and LDPE increased from 64,788 tons to 66,588 tons.  The rise in polyethylene exports this year has taken place despite the slight decline in production by MOL at Tiszaujvaros. 

Hungarian polypropylene trade Jan-Sep 2023

Polypropylene imports into Hungary amounted to 149,607 tons in January to September this year versus 161,812 tons in the same period in 2022, whilst polypropylene homo grade inward shipments decreased from 93,908 tons to 86,745 tons.  Due to softening prices, import costs dropped from €295.901 million to €241.225 million in January to September 2022. 

Hungarian polypropylene exports in the first nine months amounted to 173,747 tons against 181,763 tons in the same period in 2022.  Export revenues amounted to €236.194 million against €310.802 million last year.  

By volume Hungarian homo grade polypropylene exports rose to 94,491 tons from 93,905 tons.  Copolymer exports dropped from 74,470 tons to 67,843 tons.  Overall average prices dropped from €1709.9 per ton to €1359.4 per ton. 

Hungarian synthetic rubber trade Jan to May 2023

Hungarian imports of synthetic rubber amounted to 100,459 tons in the first nine months in 2023 for total costs of €225.075 million, against 102,280 tons in January to September 2022 for total costs of €235.013 million.  Average costs per ton dropped over the nine-month period to €2290.1 against €2247.7 per ton last year. 

Exports of halogenated butyl rubber (HBR) are dictated largely by how much product is imported from Russia and other sources.   Russia supplied 2,822 tons of HBRs in the first six months last year but did not supply in the third quarter.  Polish traders have filled the vacuum left by Russian shipments and supplied 2,116 tons of HBRs to the Hungarian market in the first nine months in 2023.

Imports of butadiene rubber into Hungary amounted to 35,290 tons in January to September this year versus 33,204 tons in the same period in 2022.  EU sanctions on butadiene rubber trade with Russia, introduced in July 2022, have since been loosened under the pressure of European tyre manufacturers but this has not led to a noticeable revival of purchases from Russia. 

In terms of exports Hungary exported a total of 50,552 tons of synthetic rubber in the first three quarters last year against 47,590 tons in the same period in 2022.  The largest share of exports from the MOL plant at Tiszaujvaros comprised SBR grade.

Synthos production at Oswiecim Jan-Oct 2023

Synthos reduced the production of synthetic rubber in Poland from 208,000 tons in the first ten months in 2023 to 168,300 tons in the same period in 2023, with the drop attributed primarily to lower demand.  However, in the styrene division Synthos increased general purpose polystyrene production from 58,600 tons to 61,100 tons and increased EPS from 76,100 tons to 76,900 tons.

Synthos-OMV butadiene supply

At the end of 2023 Synthos signed a Memorandum of Understanding (MOU) with OMV, under which the two companies will cooperate on the long-term supply of sustainable raw materials. The focus has been placed on sustainable butadiene for synthetic rubber used in tire manufacturing.

Synthos and OMV are committed to a long-term cooperation on sustainable butadiene production until 2030.  This involves the initial usage of palm fatty acid distillate (PFAD) and used cooking oil as feedstock. In addition, the MOU commits to future cooperation on circular butadiene derived from pyrolysis oil obtained from end-of-life tyres and underlines the transition of both companies to a more circular economy.

Synthos adopted a Sustainable Development Strategy in 2021 in which the group commits to reducing greenhouse gas emissions per gigajoule (GJ) by 28% by 2030.  Other targets include reaching zero carbon emissions by 2050 and produce 100% sustainable products by 2030. Synthos assesses that the cooperation with OMV is critical for achieving climate goals which can only be achieved together with other leading companies in the value chain.

Polish rubber consumption Jan-Oct 2023

Domestic market sales of rubber in Poland dropped in the first ten months in 2023, mainly from lower consumption in the tyre sector.  Total consumption of synthetic and natural rubber used in the tyre industry dropped from 463,400 tons in the first ten months in 2022 to 388,700 tons in the same period last year. 

Synthos-Kumho agreement

Synthos has announced the signing of a Memorandum of Understanding (MOU) with Korean company Kumho Tyre for the joint development of sustainable tire raw materials.  Under the MOU, the two companies will conduct a joint research and development project for Neodymium-Butadiene rubber using Bio-Butadiene and expand the use of environmentally friendly synthetic rubber in tyre manufacturing.  Kumho Tyre produced tyres made from 55% sustainable raw materials in 2022.  The company is currently developing tyres made from 80% sustainable raw materials that will be launched in early 2024.

Synthos rubber division Jan-Sep 2023

Approximately 80% of the volume of products sold by the rubber and tyre materials segment for Synthos is attributable to large tyre industry participants, including Michelin, Continental, Bridgestone, Goodyear and Pirelli. The remaining 20% consists of the production of technical rubber goods, soles for footwear, flexible cables and transmission belts.  

For the first three quarters in 2023, the rubber and tyre division generated revenues from sales of €797 million against €1.072 million in the same period in 2022.   Energy costs dropped from €974.4 million to €791.2 million, whilst the operating profit dropped from €97.951 million to a loss of €3.319 million in 2023.

For the third quarter Synthos achieved an EBITDA of zl 167 million, bringing the total to zl 681 million in the first three quarters in 2023 which was 61% lower in the same period in 2022.  Some improvement was seen in the latter part of the year, particularly for insulation materials, and dispersion.   Synthos also started to increase its export of rubbers to Asia.  Regarding investments, Synthos continues to invest in the new capacity in advanced products (dispersion, EPS grey and PBR in Schkopau).

Sales volumes for Synthos decreased by 118,000 tons in the first three quarters compared to the same period in 2022.  This was due principally to weaker demand which impacted on production.  Sales volumes of rubbers fell by 80,000 tons in the first three quarters, of which ESBR comprised 75,000 tons following the closure of the Kralupy plant.  

Synthos decided to close the plant as it was no longer able to compete on non-European markets.  More than half of the production had been sold in the US and Asia where competitive prices made it very difficult to sell at profitable levels.

Polish synthetic rubber trade, Jan-Oct 2023

Average prices for synthetic rubber imports into Poland dropped in the first ten months in 2023 to €2157.0 per ton against €2623.0 per ton in the year before. 

Imports of synthetic rubber into Poland by volume amounted to 222,100 tons in January to October 2023 against 244,441ons in the same period in 2022.  Butadiene rubber imports dropped from 50,810 tons to 46,815 tons and EPDM imports dropped from 39,112 tons to 36,455 tons. 

Synthetic rubber exports from Poland totalled 227,333 tons in the period January to October 2023 versus 250,469 tons in the same period last year.  SBR formed the largest share of exports, followed by butadiene rubber.  Halogenated butyl rubber (HBR) exports from Poland fell in correlation with lower imports from Russia.

Czech synthetic rubber market Jan-Oct 2023

Prices for synthetic rubber exports and imports of both synthetic and natural rubber stabilised through the course of 2023.  Prices for Czech exports of synthetic rubber dropped from €2182.2 per ton in January to October 2022 to €1800.3 per ton over the period January to October 2023, whilst import prices dropped from €2295.9 per ton to €2117.8 per ton.  Natural rubber prices dropped from €2013.3 per ton in January to October 2022 to €1668.0 per ton last year.

Exports of synthetic rubber into Czech Republic amounted to 127,533 tons in the period January to October 2023 against 160,233 tons in the same period in 2022.  Imports of synthetic rubber amounted to 110,188 tons in the first ten months in 2023 against 134.968 tons in January to October 2022, with natural rubber imports declining from 72,792 tons to 70,710 tons.   

Imports of synthetic rubber from Russia into the Czech Republic dropped from 22,351 tons in the first ten months in 2022 (for €45.070 million) to 5,472 tons (for €9.015 million.

Czech exports of ESBR dropped in the first ten months last year to 23,184 tons against 57,506 tons in the same period in 2022.  Prices per ton for ESBR dropped from €2012.1 to €1669.1 per ton.  Synthos is currently in the process of liquidating the Kralupy plant.

Czech butadiene rubber trade Jan-Oct 2023

Czech exports of butadiene rubber comprised 89,436 tons in the first ten months in 2023 against 90,795 tons in the same period in 2022.  Revenues from butadiene exports dropped from €199.231 million to €152.455 million. 

Imports of butadiene rubber amounted to 20,758 tons in the first ten months in 2023 which was down from 25,604 tons in the same period in 2022. The largest customer for Czech butadiene rubber last year has been Poland, taking 11,727 tons against 11,515 tons in January to October 2022.

Polish aromatics trade Jan-Oct 2023

Polish imports of aromatic monomers and derivatives in 2023 were all characterized by lower pricing.  Phenol imports into Poland amounted to 70,393 tons in the first ten months in 2023 against 79,440 tons in the same period in 2022.  Supplies from Russia, which had previously been a major supplier to the Polish market, stopped in August 2022 following sanctions imposed by the EU.  

Germany was the largest supplier of phenol to Poland in the first ten months in 2023, shipping 49,957 tons for €63.207 million.  Other suppliers included Finland which delivered 12,846 tons in January to October last year for €16.072 million and Spain which supplied 3,435 tons for €3.967 million. 

In other aromatic product areas, styrene imports into Poland amounted to 54,591 tons in the period January to October 2023 versus 80,257 tons in January to October 2022 whilst ethylbenzene imports rose from 84,053 tons to 97,547 tons.  Nearly all of the ethylbenzene imports come from the Synthos plant at Kralupy Czech Republic, which are delivered to the Oswiecim plant.  Paraxylene imports into Poland were not required by Poland in the first ten months, due to lower production of PTA, against imports of 34,150 tons in the same period in 2022. 

Regarding benzene, Poland exported 127,506 tons in the first ten months which was down from 139,837 tons last year.  Average prices dropped from €1092.0 per ton to €855.7.  Germany was the largest destination for Polish benzene exports, taking 86,311 tons against 85,883 tons in the same period in 2022.  Exports of benzene from Poland to the Czech Republic dropped from 44,310 tons in January to October 2022 to 13,092 tons in the same period in 2023.  

Polish PTA sales  and production Jan-Oct 2023

Lower PTA production at Wloclawek this year impacted on exports shipments from Poland, falling from 347,005 tons in the first ten months in 2022 to 200,067 tons.  Germany reduced inward shipments of PTA from Wloclawek from 281,180 tons to 159,669 tons, whilst shipments to Lithuania fell from 33,382 tons to 1,618 tons.  PTA prices dropped last year to €851.3 per ton in the first ten months in 2023 against €991.9 per ton in January to October 2022. 

Central European caprolactam production and trade

Caprolactam production in Poland dropped from 107,000 tons in the first ten months of 2022 to 58,900 tons January to October 2023.  Production has been in decline since the middle of 2022, with frequent stoppages undertaken. 

Caprolactam exports from the Czech Republic fell in the first ten months to 17,533 tons against 31,266 tons in the same period in 2022.  Average prices dropped from €2660.7 per ton to €1675.3 per ton.

Polyamide imports into the Czech Republic fell from 76,606 tons in the first ten months in 2022, for €326.193 million, to 73,544 tons for €314.379 million in 2023.  Despite weaker consumption

European polyamide prices were lower in 2023 than in 2022 due in the main to supply/demand factors.   This comes after the average contract prices of polyamide 6 went down 22% in the first half in 2023, including a 12% fall in the second quarter.  

Polish polyamide trade was quite balanced by overall volume in the first ten months in 2023, with exports totalling 103,349 tons versus imports of 102,183 tons.  The quality structure of imports means that import prices were higher than export prices, amounting to €3462.3 per ton against €2667.2 per ton.   

Czech aromatic trade Jan-Oct 2023

Czech exports of ethylbenzene amounted to 103,566 tons in the first ten months versus 92,081 tons in the same period in 2022, whilst styrene exports rose from 7,691 tons to 10,731 tons.  Styrene imports are still required in the Czech Republic to support domestic production, rising from 13,407 tons in January to October 2022 to 25,860 tons in 2023.  Benzene exports from the Czech Republic in the first ten months in 2023 amounted to 15,197 tons against 30,256 tons in January to October 2022, whilst imports of benzene dropped to 22,489 tons from 64,665 tons. 

Unipetrol operates a benzene plant at Litvinov with a capacity of 250,000 tpa, whilst benzene is also produced in the Czech Republic by Deza at Valasske Mezirici.  Deza also owns Petrochemia at Blachownia at Kedzierzyn Kozle and possesses a combined capacity of 160,000 tpa for benzene and 25,000 tpa for toluene.  Exports of toluene from the Czech Republic amounted to 9,597 tons in the first ten months this year. 

Czech imports of Bisphenol A amounted to 23,096 tons in the first ten months in 2023 against 26,067 tons in the same period in 2022, with average prices dropping from €1872.5 per ton to €1223.6.  The leading supplier was South Korea which shipped 10,518 tons in the first ten months in 2023.  The main consumer of Bisphenol A in the Czech Republic is Spolchemie at Ust nad Labem, where epoxy resins are produced.  

Spolchemie’s production accounts for most of the Czech exports of epoxy resins, amounting to 39,577 tons in January to October 2023 versus 46,830 tons in the same period in 2022.  Average export prices dropped from €4567.2 per ton to €3164.8 per ton.  The major destination for Czech epoxy resin exports is Germany which took 17,709 tons in January to October 2023 against 20,440 tons in 2022. 

Polish imports of epoxy resins totalled 19,812 tons in the first ten months in 2023 for €89.763 million, whilst exports amounted to 9,599 tons for €37.566 million.  Most of the imports were sourced from European producers.  Epoxy resins production in Poland is undertaken by Lerg at Pustkow, to the east of Krakow. 

Central European MDI trade Jan-Oct 2023

MDI imports into the Czech Republic totalled 24,633 tons in the first ten months in 2023 against 23,672 tons in the same period in 2022.  Hungary provided the largest share of imports at 9,076 tons followed by Belgium with 7,954 tons.  Average MDI prices declined from €2708.9 per ton to €2223.0 per ton. 

MDI imports into Poland dropped from 125,109 tons in the first ten months in 2022 to 121,607 tons in the same period in 2023.  Hungary and Germany remain the two largest import sources, with overall average prices comprising €2051.8 per ton in January to October 2023 against €2072.9 per ton in 2022.  Overall costs for MDI imports dropped from €325.637 million in the first ten months in 2022 against €249.510 in the same period in 2022.

Hungarian MDI exports dropped in January to September 2023 to 112,185 tons versus 142,746 tons in the same period in 2022.  Poland represented the largest destination with deliveries amounting to 23,836 tons, down from 27,846 tons, followed by Germany which reduced purchases from 19,208 tons to 15,436 tons.  MDI export prices dropped from €2593.1 per ton in the first three quarters in 2022 to €2043.1 this year.  

Polish producers are struggling with the effects of the slowdown in the economy and weakening consumer demand, especially for durable goods. Ciech’s division for polyurethane foams, reports reduced demand in the upholstered furniture sector.   

Central European TDI trade Jan-Oct 2023

TDI exports from Hungary amounted to 156,145 tons in the first nine months in 2023 versus 176,862 tons in the first three quarters in 2022, with average prices dropping this year to €2579.8 per ton from €2734.7 per ton.

TDI exports to Turkey amounted to 24,317 tons in the first nine months in 2023 against 25,487 tons whilst Italy reduced imports from Hungary from 25,468 tons to 20,492 tons.  Belgium took 23,834 tons in January to September this year up from 19,264 tons, whilst Romania increased purchases slightly from 10,514 tons 10,817 tons.   Hungary remains the largest supplier of TDI to the Polish market, although volumes fell in value from €39.326 million in the first nine months in 2022 to €35.542 million in the same period in 2023.   European demand for TDI is faced by recessionary trends and slowly declining feedstock costs.  In effect only global capacity constraints can help to sustain prices. 

TDI imports into Poland amounted to 58,123 tons in the first ten months in 2023 against 62,850 tons in the same period in 2022.  Average prices dropped from €2846.5 per ton to €2603.8 per ton.  Prices started the year in the range of €3200-3400 per ton and had declined to €1980-2150 by October.  Part of this decline can be attributed to lower feedstock costs and another part can be put down to lower demand.  Apart from Hungary, Germany is a major supplier of TDI to Poland, supplying 13,717 tons in the first ten months in 2023.

Hungarian polyol imports Jan-Sep 2023

Hungarian polyol imports amounted to 30,271 tons in the first nine months last year against 24,925 tons in the same period in 2022.  Belgium was the largest supplier this year, shipping 12,547 tons.  Major suppliers of polyols to Hungary in 2022 included China with 11,091 tons and the Netherlands with 10,746 tons. 

MOL has yet to complete the new polyol plant at Tiszaujvaros.  In June MOL fed propylene oxide into the pilot polyol plant and large-scale test production at the base was expected to start in the second half of 2023.  There are suggestions that MOL is waiting for European markets to revive before starting production.   Start-up would clearly have a negative impact on pricing which remains under pressure from weak market activity.

Czech polyol imports Jan-Oct 2023

Czech polyol imports amounted to 37,901 tons in the first ten months in 2023 against 35,375 tons in the same period in 2022.  The major sources of imports came from Belgium, France and Germany.  Polyol import costs increased in the first ten months to €87.308 million from €91.162 million in January to October 2022 with average prices dropping from €2313.9 per ton to €1992.2 per ton. 

Polish polyol trade Jan-Oct 2023

Polish polyol imports amounted to 123,340 tons in the first ten months in 2023 against 117,915 tons in the same period in 2022.  The major sources of imports came from Belgium, Germany and the Netherlands. 

Polyol import costs dropped in the first ten months to €203.079 million from €260.305 million in January to August 2022 with average prices dropping from €2614.4 per ton to €2109.3 per ton. 

The largest source of imports came from Germany in the first ten months, amounting to 21,907 tons against 17,723 in the same period in 2022. 

Polish exports of polyols amounted to 46,739 tons in the first ten months this year against 45,831 tons in the same period in 2022, whilst prices dropped from €2600.5 per ton to €2249.0 per ton.  Revenues from polyol exports dropped from €130.911 million in January to October 2022 to €105.114 million.  The largest destinations for Polish polyol export include Hungary, Italy and Denmark.  

PCC Rokita is the sole producer of polyols in Poland.  All five production lines located at Brzeg Dolny jointly give a capacity of 110,000 tpa.  The fifth plant at Brzeg Dolny was added in 2022.  Polyols account for around a fifth of PCC Rokita’s total sales.

Polish organic chemical trade Jan-Oct 2023

Values and volumes for Polish trade in organic chemicals fell for both exports and imports in the first ten months, as recessionary trends took effect.   Import costs for organic chemicals into Poland dropped from €4.287 billion in the first ten months in 2022 to €3.286 billion in the same period in 2023, whilst export revenues dropped from €1.909 billion to €1.237 billion.  Volumes for exports dropped from 1.422 million tons to 988,600 tons whilst imports fell from 2.582 million tons to 2.216 million tons. 

Poland still needs to import ethylene oxide to support ethoxylate production at Brzeg Dolny but has changed its main supplier from Russia to Germany in the past two years.  Ethylene oxide imports amounted to 16,758 tons in January to October 2022, up from 10,084 tons.    

Ethylene glycol was one of the few products showing an increase in imports last year, rising in the first ten months from 40,007 tons in the first ten months in 2022 to 88,166 tons in the same period in 2023.  Belgium was the main supplier of ethylene glycol, providing 58,292 tons of ethylene glycol for €34.992 million.  Diethylene glycol imports amounted to 26,534 tons in the first ten months versus 20,422 tons.  Poland also exports ethylene glycol, shipping 14,686 tons in the first ten months.   

Methanol imports into Poland dropped from 713,604 tons in the first ten months in 2022 to 498,749 tons in the same period in 2023, with volumes from Russia constrained by sanctions.  

Average prices of all oxo alcohols on the European market fell 23% in the first ten months.  The year-on-year decline was driven by lower prices of propylene and natural gas.  The market situation was a contributory factor putting pressure on the prices of oxo alcohols. The decline in demand across virtually all sectors of the European industry has persisted throughout the year, with no clear signs of improvement.

In the first ten months average prices of plasticizers on the European market fell 22%, with most of the decline recorded in the first half of 2023.  The year on-year decline was driven by lower prices of the key feedstocks (2-EH, PTA) and natural gas.  Another significant contributor to the decline in plasticizer prices has been imports of much cheaper products from Korea and Turkey into Europe, facilitated by lower logistics costs.

Polish acetic acid imports, Jan-Oct 2023

Acetic acid imports into Poland dropped from 41,822 tons in the first ten months in 2022 to 30,839 tons in January to October 2023.  The main suppliers to the Polish market this year include the US which increased shipments from 10,119 tons to 14,044 tons.  Average prices for acetic acid dropped from €1181 per ton to €717.0 per ton last year. 

Polish exports of monochloroacetic acid

Regarding export activity in organic chemicals, Polish shipments of monochloroacetic acid (MCAA) rose sharply in the first ten months last year to 30,430 tons against only a few hundred tons in the same period in 2022. MCAA production is undertaken by the PCC Group at Brzeg Dolny.  The destinations for Polish MCAA exports are spread throughout Europe including Germany, Italy, France and Spain.

Hungarian organic chemical trade Jan-Sep 2023

Acrylonitrile imports into Hungary amounted to 15,155 tons in January to September this year versus 48,591 tons in the same period in 2022.  Average prices dropped from €2317.8 per ton against €2111.6 per ton in the first nine months in 2023.   European acrylonitrile prices increased at the start of October 2023 due largely to low inventories rather than demand improvements.  Unplanned outages such as occurred at the Gelsenkirchen-Horst plant in September 2023, accentuated market tightness.  The Netherlands reduced shipments to the Hungarian market in the first three quarters to 8,472 tons from 32,613 tons in the same period in 2022. 

Aniline imports into Hungary amounted to 72,516 tons in January to September this year against 61,160 tons in the same period in 2022. 

Imports of aniline from China amounted to 11,067 tons whilst imports from the BorsodChem Ostrava plant in the Czech Republic totalled 42,799 tons against 58,885 tons in the same nine months in 2023.  Imports from Belgium rose from only 988 tons in January to September 2022 to 18,650 tons this year. 

Maleic anhydride exports from Hungary amounted to 13,208 tons in the first three quarters in 2023 against 17,570 tons in the same period in 2022. 

Most of the exports were delivered in liquid form to customers up to 500 km from the Szazhalombatta plant which is located at the Danube refinery.   Austria accounted for 2,226 tons in January to September 2023 against 3,066 tons in the same period last year, whilst shipments to Poland fell from 4,207 tons to 2,107 tons.  Average prices for maleic anhydride fell from €2196.3 per ton in 2022 to €1194.8 in 2023.

Methanol logistics in Poland

Polish oil and fuel logistics company PERN is considering the possibility of constructing a dedicated chemical terminal in Poland, which would include the transportation of methanol.   

The sanctions against Russia have had a major effect on the dynamics of methanol trade in Poland and for the market to fully adapt to new suppliers a new terminal is seen as an important investment.  As demand for chemical logistics is expected to grow there may be the need for greater adaptation at ports.  PERN has suggested that this potentially could entail the construction of a chemical terminal liquid chemical products, using offshore assets and experience in handling fuels.  If Poland has a chemical terminal capable of handling methanol, it will be able to supply not only itself, but also neighboring countries.

Central European methanol trade Jan-Oct 2023

Exports of methanol from Poland totalled 232,947 tons in the first ten months in 2023 against 381,926 tons in January to October 2022.  Exports to Germany fell from 99,614 tons to 68,468 tons.  Ukraine imported 20,474 tons of methanol from Poland in the first ten months in 2023 versus 15,181 tons in January to October 2022.   

Other destinations include the Czech Republic where Polish exports dropped from 65,786 tons to 46,497 tons whilst deliveries to Austria dropped from 63,880 tons to 30,647 tons.  The price differential between imports and exports partly reflects the geopolitical nature of methanol trade.

Imports of methanol into Poland dropped from 787,508 tons in the first ten months in 2022 to 538,154 tons in the same period in 2022 with average prices dropping from €379.2 per ton to €282.0 in 2023. 

Russia reduced exports to Poland in January to October 2023 to 188,165 tons from 613,687 tons.   Norway shipped 92,687 tons in the first ten months to Poland, against 24,537 tons last year, whilst Germany reduced exports to 40,825 tons from 76,140 tons. 

Czech imports of methanol amounted to 63,124 tons in the first ten months in 2023 against 25,060 tons in the same period in 2022.  Russia accounted for 6,237 tons in January-October 2023 against 25,060 tons in 2022. 

Imports of methanol into the Czech Republic were dominated by Poland which increased shipments from 32,380 tons in January to October 2022 to 45,133 tons.  Average prices for methanol imports dropped from €471.3 per ton in January to October 2022 to €378.9 per ton in 2023.

Hungarian imports of methanol totalled 63,596 tons in January to September last year versus 97,532 tons in January to September 2022.  Prices averaged €431.5 per ton in the first nine months against €497.2 per ton in the same period in 2022. 

The EU region imported 172,100 tons of methanol from Azerbaijan in the first three quarters last year, which is 3% less than in the same period in 2022.  In value terms and due to lower prices, deliveries for the reporting period decreased by 10.8% to €66.3 million. 

Romania remained the largest buyer, taking 57,300 tons from Azerbaijan in the first three quarters.  For the whole of 2022 EU countries imported 261,700 tons of methanol from Azerbaijan (an increase of 3.1 times compared to 2021) for €104.4 million (an increase of 3.5 times).

Grupa Azoty slight rises in production

Despite lower overall production in 2023, Grupa Azoty did start to increase volumes in October across the board both for fertilisers and organic chemicals.  Urea production amounted to only 350,000 tons in the first ten months in 2023 versus 1.037 million tons in the same period in 2022.  In the organic sector oxo alcohol production dropped from 134,000 tons in the period January to October 2022 to only 53,000 tons in the same period in 2023, whilst caprolactam production dropped from 113,200 tons to 75,500 tons.  In the plastics segment polyamide production dropped to 48,000 tons against 113,200 tons. 

Grupa Azoty recorded limited demand this year for its products combined with strong downward pressure on prices. The decrease in sales volumes, combined with the low level of demand, forced the group to close or reduce production where necessary.  However, the group does now expect some revival over the next few months. 

Polish-Russian Chemical Product Trade 2023

EU sanctions have had a major impact in certain product areas in Polish-Russian bilateral trade, but it is far from being a complete embargo.  Export values of products shipped from Poland to Russia have declined in the past two years but still amounted to €828.2 million in the first ten months in 2023 against €1067 million in the same period in 2022 and €1167 million in January to October 2021.  From the total Polish exports of €828.2 million in January to October 2023, 34% comprised products in the pharmaceutical sector and another 37% were accounted for by shipments of cosmetics and detergents.  Another important component included range of complex plastics including polyacetals, polyurethane raw materials, etc, accounting for 29% of total export revenues.

Import values of chemical products from Russia have been affected much greater than export values, dropping to €405.6 million in January to October 2023 against €1077.6 million in the corresponding period in 2022 and €1006 million in 2021.  Organic chemical exports from Russia to Poland have been heavily sanctioned under EU law, affecting products such as methanol, propylene, phenol. 

Of the €405.6 million worth of chemical products imported from Russia, 39% comprised fertilisers, 17% in synthetic rubber and the remainder in a wide range of chemicals.  Whilst Polish exports of plastics into Russia have continued, imports of plastics in the other direction have dropped to a minimum. 

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