Czech crude imports Jan-Oct 2024

Imports of Russian crude into the Czech Republic dropped from 6.212 million tons in the first ten months in 2023 to 5.260 million tons in the same period in 2024. Imports from Russia accounted for 39% of total crude purchases of 5.260 million tons in January to October 2024, down against 60% of the 6.212 million tons in 2023. Russian crude oil flows to the Czech Republic through the Druzhba were interrupted in early December but were resumed quickly.

Azerbaijan increased crude shipments to the Czech Republic to 2.153 million tons in the first ten months in 2024 against 1.623 million tons in 2023. At the moment Czech refineries could not run at full capacity without Russian crude, but major changes are expected this year in the composition of Czech imports and the expansion of non-Russian crude oil. These sources are intended to be delivered from the Trans-Alpine pipeline, bringing oil from the Italian port of Trieste.

MOL’s oil diversification is now being forced to accelerate

MOL slightly increased its share of crude imports from Russia in the first nine months last year although volumes dropped to 3.146 million against 3.503 million tons. Overall imports of crude amounted to 3.756 million in the first ten months in 2024 against 4.709 million tons in 2023. Hungary receives a discounted price for Russian crude but has stated it is prepared to stop its Russian purchases if the EU helps bankroll its switch to other importers. Hungary's refineries could be ready to work without Russian crude by the end of 2026, but that would require EU cash.

MOL signed a wide-ranging cooperation agreement in December with KazMunayGaz, seeking opportunities in Kazakh upstream sector and oil exports to Hungary. This agreement covers oil and gas exploration and production, technology transfer, crude oil supply, and petrochemicals. MOL is also looking at possible exports of Kazakh crude to Europe and Hungary.

Following the EU’s ban on imports of Russian oil since December 2022, Kazakhstan has replaced some of the lost Russian oil that arrives in Germany via the Russian trunkline network and the northern leg of the Druzhba pipeline running across Belarus and Poland.

Polish crude imports Jan-Oct 2024

From the total of 22.663 million tons of crude imported into Poland in the first ten months in 2024, supplies from Saudi Arabia totalled 10.508 million tons followed by Norway which provided 8.775 million tons. Average prices for Polish crude purchases increased from $539.7 per ton in the first ten months in 2023 to $575.0 per ton last year.

The US was the only other supplier to provide more than a million tons last year, amounting to 1.183 million tons in the first ren months.

Margins have been in decline last year, dropping into single digits in the third quarter and ending in September at $5.5. Previously numbers quite often less than much less than $10 were the norm for Orlen and other regional refiners until the start of 2022 and the indirect consequences resulting from the war in Ukraine.

Polish petrochemical productionJan-Oct 2024

Ethylene production in Poland increased slightly from 277,000 tons in January to October 2023 to 297,500 tons in the same period in 2024, whilst propylene rose from 239,200 tons to 333,200 tons. Propylene production has been increased this year through start-up of the Polimery Police plant in Poland. Butadiene production at Plock rose marginally to 43,514 tons in the first ten months from 42,978 tons last year. Nearly all of the butadiene produced at Plock is consumed by Synthos.

In the plastics sector polyethylene production in Poland amounted to 258,000 tons in January to October 2024 versus 225,700 tons in 2023. Polypropylene production increased from 223,000 tons to 271,600 tons. PVC production increased from 155,800 tons to 189,200 tons.

Orlen confirms scaling down of Olefiny III

Orlen announced on 11 December 2024 that it had approved to stop construction of the Olefiny III complex. The project, which had been developed and started under the previous management is expected to continue in a much-restructured format under the name New Petrochemicals or Nowa Chemia.

By the end of the third quarter in 2024, the amount of capital expenditure outlaid for the Olefiny III complex had amounted to zl 12.6 billion (€2.958 billion). Further work will now be conducted under within “New Petrochemicals” project in the optimized scope rationalizing required CAPEX.

Focus of New Petrochemicals project at Plock

The decision of the company's corporate bodies to abandon Olefiny III is aimed at minimizing value damage that have been faced had the project been continued in its current scope.

Current activity will now concentrate on the core olefin unit (ISBL) and additional infrastructure (OSBL). Orlen’s management stated that some relevant design and technical problems of ISBL unit were identified and recognized. Olefiny III was started not only to replace the existing capacities, but also to increase the Group's share in the European petrochemical market from around 5% to around 6.4%.

In the new format, the construction of ethylene unit is expected to be undertaken raising capacity to 740,000 tpa but it is important to note that this plant will not be operational before 2030. Originally, the investment was to be completed at the beginning of 2024, but during the PiS government, the deadline was postponed to 2027. Although the decision to construct Olefiny III was taken in 2018, it was originally considered almost twenty years ago after the modernisation of Olefiny II.

In order to reduce the negative economic effects of its investment in Olefiny III, Orlen wants to use the infrastructure as a basis for developing the Nowa Chemia project. This project is intended at this stage to include the construction of a modern installation for the production of monomers. It will also focus on the company's sales capabilities in the area of ethylene oxide and glycols, styrene and butadiene.

Central European petrochemical prices

Margins for petrochemical products in Central Europe faced significant pressures last year even if prices were in line with recent historical averages. Of the olefin monomers, ethylene prices started at €1335.7 per ton in January 2024, dropping slightly to €1304.8 per ton in October. Butadiene prices started at €707 per ton in January and rose to €854.3 per ton in September whilst propylene declined from €861.7 per ton in January to €882.4 per ton in September. Toluene and styrene prices in Central Europe trended lower in the second half of the year, whilst benzene tended to stabilise and averaged €843.8 per ton in October.

Polish propylene imports, Jan-Oct 2024

Poland imported 79,459 tons of propylene in January to October last year against 101,094 tons in January to October 2023. Imports declined last year due to the availability of propylene from the new Polimery Police plant. This allowed a surplus of over 11,000 tons to be exported. Average import prices dropped from €897.0 per ton to €847.2 last year. Germany was the main supplier to Poland, shipping 68,745 tons against 45,907 tons in the first ten months last year.

Polish butadiene imports, Jan-Oct 2024

Butadiene import prices for Poland rose slightly from 880.4 per ton on average in January to October 2023 to €922.8 in January to October 2023, with volumes rising from 68,473 tons to 84,203 tons. Synthos is the major importer of butadiene in Poland, whilst Hungary was the largest supplier, shipping 28,843 tons in the first ten months against 17,981 tons in 2023. The increase in imports in 2024 into Poland was driven by the increase in synthetic rubber production at Oswiecim.

Hungarian propylene & butadiene imports, Jan-Sep 2024

Exports of propylene from Hungary amounted to 63,777 tons in January to September last year against 62,988 tons in January to September 2023, most of which went to Slovakia. Prices averaged €941.8 per ton in the first nine months against €1096.9 per ton in 2023. Hungarian butadiene exports amounted to 41,509 tons in the first nine months against 30,909 tons in the same period in 2023. Shipments into Poland totalled 23,129 tons in January to September against 17,014 tons last year whilst exports to Germany rose from 1,995 tons to 8,211 tons. Average prices for Hungarian butadiene exports fell to €841.5 per ton versus €856.9 in 2023.

Czech olefin monomer trade, Jan-Oct 2024

Czech ethylene trade fell in volume last year, as imports fell from 28,745 tons in January to October 2023 to 3,658 tons in the same period in 2024. Ethylene exports from the Czech Republic amounted to 13,741 tons against 12,369 tons in the first ten months in 2023.

Czech polyethylene trade Jan-Oct 2024

Czech prices for both imports and exports of polyolefins have trended lower in the first ten months in 2024 against the corresponding period in 2023, but at the same time trade has increased slightly by volume.

For imports of all forms of polyethylene, Czech inward shipments amounted to 256,336 tons in January to October 2024 against 251,865 tons in the same period in 2023, with prices dropping from €1600.7 per ton to €1486.7 per ton. Germany was the largest source of polyethylene imports, followed by the Netherlands and Belgium.

Polyethylene exports from the Czech Republic amounted to 332,603 tons in the first ten months last year against 349,478 tons in 2023. Average prices increased from €1299.0 per ton in 2023 to €1385.7 per ton in 2024.

HDPE export shipments comprised 280,697 tons in the first ten months in 2024 against 301,233 tons in the same period in 2023. Germany was the largest destination for Czech HDPE supplied from Litvinov. Other important markets for Czech polyethylene exports include Poland, Italy and Belgium.

Polish polyethylene tradeJan-Oct 2024

Polish total foreign trade in polyethylene increased in the first ten months last year against the same period in 2023 for both imports and exports. Consumption of polyethylene increased in the first ten months in 2024 to 1.111 million tons against 1.021 million tons in the same period in 2023.

Polish imports of polyethylene totalled 1.164 million tons in the first ten months in 2024 against 1.042 million tons in the same period in 2023, with average prices falling from €1366.7 per ton to €1283.5 per ton. HDPE is the largest category of imported polyethylene into Poland, amounting to 374,525 tons in January to October 2024 versus 352,749 tons in January to October 2023. Germany is the largest supplier of HDPE to the Polish market.

LLDPE imports rose from 170,881 tons in January to October 2023 to 183,646 tons in the corresponding period in 2024. Most of the LLDPE imports were sourced mostly from West Europe, including France, the Netherlands and Germany. LDPE imports increased to 302,227 tons versus 283,454 tons in 2023. last year. Imports from ethylene alpha olefins increased in the first ten months in 2023 from 167,250 tons to 239,763 tons in the same period in 2024.

Polish polyethylene exports amounted to 278,190 tons in the first ten months in 2024 against 291,799 tons in the same period in 2023. Average prices for polyethylene exports from Poland fell overall in 2024, dropping to €1281 per ton. Prices for export categories have tended to drop whilst imports have risen.

Exports of HDPE from Poland declined from 197,582 tons in January to October 2023 to 169,422 tons in the same period in 2024 whilst LDPE exports rose from 52,358 tons to 61,953 tons. Exports of ethylene alpha olefins amounted to 19,444 tons in the first ten months in 2024.

Hungarian polyethylene trade Jan-Sep 2024

Hungarian polyethylene exports amounted to 237,228 tons in January to September last year against 251,692 tons in January to September 2023, whilst average prices dropped from €1247.1 per ton to €1246.2 per ton. Revenues for polyethylene exports in January to September dropped from €295.6 million in 2024 to €313.9 million in 2023.

In terms of category HDPE exports dropped from 170,418 tons in January to September 2023 to 163,874 tons whilst LDPE exports dropped from 66,588 tons to 59,623 tons.

Hungary remains a net exporter of LDPE and HDPE, whilst continues to be a net importer of LLDPE and ethylene copolymers. Imports of all grades of polyethylene into Hungary amounted to 173,351 tons in January to September last year against 153,706 tons in January to September 2023.

Hungarian import prices for polyethylene decreased on average from €1586.8 per ton to €1528.7 in January to September last year. The largest category of polyethylene imports comprised HDPE, which rose from 65,386 tons to 74,764 tons.

Polish PP Trade Jan-Oct 2024

In contrast to the slight improvement in the Polish polyethylene market last year, polypropylene consumption has been more restrained dropping from 801,100 tons in January to October 2023 to 725,500 tons in January to October 2024.

Polish polypropylene imports, including homo grade and copolymers, increased in the first ten months to 787,481 tons against 757,957 tons in the same period in 2023. However, the key to lower consumption in Poland has been the significant rise in export activity.

Average prices for all types of polypropylene imports increased from €1460.4 per ton to €1560.0 per ton. Homo grade polypropylene imports increased from 491,260 tons in January to October 2023 to 496,083 tons in 2024, whilst copolymer imports increased from 245,519 tons to 268,527 tons. Total import costs of propylene polymers amounted to €882.123 million against €880.023 million in the same eight months in 2023.

Export shipments from Poland more than doubled in the first ten months last year, rising to 333,575 tons against 179,808 tons in January to October 2023. Homo polymer grades comprised the main category of Polish polypropylene exports, where Germany was the largest destination.

In terms of pricing, imports into Poland usually face a higher premium than exports primarily due to the volumes of propylene copolymers than enter the country. The price differential between imports and exports in 2024 attained averages around €200 per ton, despite starting at a similar figure at the start of the year.

Exports of homo polymer grade polypropylene from Poland more than doubled from 118,779 tons in the first ten months in 2023 against 248,506 tons in the same period in 2024, mainly due to the start-up of the Polimery Police plant. This plant is not fully operational yet, but its limited operation has already helped to affect the ratio between imports and exports. When fully operational Polimery Police’s target portfolio includes over 30 types of propylene polymers under the Gryfilen brand.

Hungarian polypropylene trade Jan-Sep 2024

Exports of all forms of polypropylene from Hungary amounted to 172,393 tons in January to September 2024 versus 173,745 tons in the corresponding period in 2023, with average prices dropping slightly to €1357.8 per ton. Homo-grade PP provides the main category of Hungarian polypropylene exports, amounting to 94,938 tons in the first nine months last year versus 94,491 tons in 2023.

For imports of all forms of polypropylene, Hungarian inward shipments increased to 159,596 tons in January to September 2024 from 148,864 tons in 2023, with average prices dropping from €1629.0 per ton to €1507.9 per ton. Imports of propylene copolymers increased from 38,598 tons to 41,944 tons whilst homo grade polypropylene imports increased from 86,745 tons to 101,440 tons.

Czech polypropylene tradeJan-Oct 2024

Exports of all forms of polypropylene from the Czech Republic amounted to 240,192 tons in January to October 2024 versus 251,957 tons in the same period in 2023, with average prices rising from €1364.9 per ton to €1477.3 per ton in 2024.

Homo-grade PP provides the main category of Czech polypropylene exports, amounting to 194,644 tons in the first ten months last year versus 184,386 tons in 2023. For imports of all forms of polypropylene, Czech inward shipments amounted to 443,575 tons in January to October 2024 from 439,872 tons in 2023, with average prices dropping from €1599.9 per ton to €1583.1 per ton. Imports of propylene copolymers increased slightly from 180,582 tons to 183,228 tons whilst homo grade polypropylene imports dropped from 247,269 tons to 244,789 tons.

Czech synthetic rubber tradeJan-Oct 2024

Exports of synthetic rubber amounted to 109,572 tons in January to October 2024 versus 127,581 tons in the same ten-month period in 2023. At the same time imports increased from 107,332 tons to 177,879 tons in January to October 2023.

Czech butadiene rubber trade Jan-Oct 2024

The Czech Republic exported 89,188 tons of butadiene rubber in the first ten months in 2024 against 98,275 tons in the same period in 2023. Average prices rose from €1658.3 per ton to €1736.6 per ton.

Czech exports of butadiene rubber to India amounted to 14,776 tons in January to October 2024 against 12.035 tons in the same period in 2023. Other important markets included Poland where exports amounted to 9,473 tons against 12,329 tons. Besides exports the Czech Republic also imported 25,023 tons of butadiene rubber in the first ten months in 2024. Imports were sourced largely from Germany and the US.

Hungarian synthetic rubber trade Jan-Sep 2024

Hungarian imports of synthetic rubber amounted to 80,934 tons in January to September against 100,135 tons in January to September last year. Average prices increased from €2247.7 per ton to €2454.0 in 2024.

Butadiene rubber imports into Hungary dropped from 35,290 tons to 21,056 tons, with the largest source coming from Indonesia. SBR imports rose from 39,564 tons to 43,228 tons. Synthetic rubber exports from Hungary amounted to 44,615 tons in the first nine months last year of which SBR grades accounted for 38,588 tons.

MOL sells its stake in the rubber plant at Tiszaujavros

MOL and Japan's ENEOS Materials Corporation signed a purchase agreement in December, according to which ENEOS will buy MOL's 49% stake in ENEOS MOL Synthetic Rubber Kft. Following the transaction, ENEOS will become the 100% owner of the company at Tiszaujvaros. The transaction is expected to close in the first quarter of 2025, subject to regulatory approval.

MOL started to establish a plant suitable for the production of synthetic rubber in the field of MOL Petrochemicals in 2015 in a joint venture with JSR Corporation of Japan. The S-SBR (styrene butadiene rubber solvent) plant started operations in 2020. JSR's 51% stake in the joint venture was acquired by ENEOS in 2022. According to the agreement, ENEOS will continue its manufacturing activities at the Tiszaujvaros plant. MOL will remain a key raw material supplier, trading and service partner of the company in the future.

Central European rubber trade Jan-Oct 2024

For all types of synthetic rubber imports into Poland average prices dropped from €2216.9 in January to October 2023 to €1831.1 in the first ten months in 2024. Hungarian import prices rose from €2267.0 per ton to €2468.8 per ton, which is higher than elsewhere in Central Europe. This is determined predominantly by the higher value grades imported into Hungary.

Poland imported a total of 268,806 tons of synthetic rubber in January to October 2024 against 222,100 tons in the same period in 2023. By category. butadiene rubber was the largest product, accounting for 64,747 tons against 46,815 tons in the same period in 2023. Isoprene rubber imports jumped from 11,097 tons in the first ten months last year to 35,147 tons in the same period in 2024. The largest suppliers of all grades of synthetic rubber in the first ten months in 2024 included Germany, Belgium and Saudi Arabia.

Natural rubber imports into Poland totalled 80,534 tons in the first ten months last year at an average price of €1690 per ton. Natural rubber accounts for around a third of total rubber consumption in Poland.

Synthetic rubber exports from Poland amounted to 286,757 tons in the first ten months in 2024 against 232,772 tons in January to October 2023. Exports of butadiene rubber from Poland amounted to 61,499 tons in January to October versus 38,745 tons in the same period in 2023. The largest category of rubber exports focuses on SBR grades.

Prices of synthetic rubber exports from Poland increased from €1584.1 per ton in the first ten months last year to €1647.5 per ton last year. Although both import and export volumes for synthetic rubber have been very similar last year, the prices for imported grades mostly exceed export prices. The trend for all forms of trade have been downward since the start of 2023.

Polish synthetic rubber production and domestic market Jan-Oct 2024

Synthetic rubber production at Oswiecim for Synthos amounted to 216,000 tons in January to October 2024 against 168,300 tons in 2023. Synthos has managed to diversify its export markets which has allowed the company to increase production over 2023. At the same time the production of synthetic rubber has been affected by demand side factors which saw a reduction of consumption in 2023. Although synthetic rubber production increased in 2024 the extra output was channelled into export activity rather than domestic consumption.

Synthos performance 2024

Despite the drop in sales of synthetic rubber by Synthos in the past three years the company is reporting reasonable financial results. Total sales volumes for Synthos in the first three quarters in 2024 amounted to 809,000 tons compared to 807,000 tons in the same period in 2023. Sales volumes of rubbers increased 5%, as Synthos increased exports of butadiene rubber and SBR grades. Sales could have been higher had it not been for production problems in the third quarter at both Schkopau in Germany and Kralupy in the Czech Republic. The production problems in the third quarter were reflected in lower sales than recorded in the first and second quarters in 2024 but still remained higher than in 2023. Whilst rubber sales increased volumes of insulation materials fell by 8%, or 27,000 tons, against the first three quarters in 2023. This was due to the low consumption in the construction sector which affected sales of white grades of expandable polystyrene. Grey grades of expandable polystyrene which are used in packaging remained stable.

Polish aromatic exportsJan-Oct 2024

Polish exports of benzene totalled 130,455 tons in January to October 2024 against 127,506 tons in the same period in 2023. Exports to Germany increased in the first ten months in 2023 from 86,311 tons to 113,922 tons in the same period in 2024, with average prices rising from 754.3 per ton to €946.8 per ton. Benzene exports from Poland are supplied largely from Petrochemia Blachownia at Kedzierzyn-Kozle.

PTA is the only aromatic product where exports are shipped in significant volume from Poland. PTA is also imported into Poland, amounting to 11,511 tons in the first ten months in 2024.

Polish aromatic importsJan-Oct 2024

Phenol imports into Poland amounted to 90,987 tons in January to October 2024 which was up from 70,260 tons in 2023. Germany was the dominant supplier of phenol to Poland, shipping 67,665 tons against 49,963 tons in the same period in 2023. Spain and Finland accounted for smaller shipments.

Average prices for phenol imported into Poland dropped in the first ten months to €1155.7 per ton measured against €1215.1 per ton in 2023. Increased phenol imports offset the drop in phenol production at Plock in the first ten months in 2024 to 31.622 tons versus 32,668 tons in the same period in 2023.

In other product areas, styrene imports into Poland amounted to 64,537 tons in the period January to October 2024 against 46,651 tons in the same period in 2023. The Netherlands was the largest supplier shipping 21,283 tons against 21,930 tons in January to October 2023. Saudi Arabia supplied 7,707 tons in the first ten months in 2024, the first time that styrene had been sold into Poland. Ethylbenzene imports amounted to 85,115 tons against 107,206 tons in the same period last year. All the ethylbenzene was shipped from Kralupy to Oswiecim, all within the structures of the Synthos Group.

Caprolactam imports into Poland amounted to 10,884 tons in the first ten months last year versus 10,442 tons in the same period in 2024. Caprolactam production remains idle at Pulawy, operated by Grupa Azoty, although the Tarnow plant is working. The PA6 product chain remains under pressure although logistical constraints caused by attacks in Red Sea resulted in a greater demand for the use of products from Europe.

In the first ten months Poland imported over 39,403 tons of paraxylene against zero in the same period in 2023. France was the main supplier followed by the Netherlands.

Polish PTA exportsJan-Oct 2024

PTA exports increased sharply in the first ten months from 197,273 tons in 2023 to 320,836 tons in the same period in 2024. Production was reduced substantially in 2023 due to a combination of weak demand and extended maintenance. Exports to Germany increased from 159,669 tons to 261,131 tons. Average prices for PTA changed from €851.3 per ton in the first ten months in 2023 to €771.9 per ton.

Czech aromatic trade Jan-Oct 2024

Regarding Czech trade in aromatic monomers and derivatives, styrene exports from Kralupy amounted to 9,170 tons against 10,720 tons in January to October 2023. At the same time imports of styrene dropped from 24,739 tons to 15,351 tons. Styrene prices increased from €1064.8 per ton to €1284.2 in 2024.

Benzene imports into the Czech Republic increased in the first ten months in 2024 to 34,500 tons against 22,489 tons in January to October 2023, whilst toluene imports dropped from 5,758 tons to 4,796 tons. Benzene imports are sourced from Poland, Hungary and Serbia. Czech benzene exports increased to 18,244 tons in January to October 2024 against 16,445 tons in the same period in 2023, whilst toluene exports dropped from 9,497 tons to 8,547 tons. Imports of bisphenol A rose from 23,810 tons to 26,584 tons.

Aniline exports amounted to 71,199 tons in the first ten months in 2024, of which 58,876 tons were shipped to Hungary. This represented an increase against 50,791 tons in January to October 2023 from the total of 57,950 tons. All of the aniline shipped from the Czech Republic is produced at Ostrava by BorsodChem-MCHZ, and most of the exports are shipped to BorsodChem in Hungary.

Czech caprolactam exports increased from 16,370 tons to 16,721 tons, with prices rising from €1507.0 per ton to €2035.2 in 2024. Italy was the largest destination for Czech caprolactam exports, amounting to 7,875 tons. Other end destinations included Slovenia. The Czech Republic exported 6,825 tons of phthalic anhydride in the first ten months in 2024 for €8.760 million. This compares against 7,255 tons in January to October 2023 for €10.538 million. Phthalic anhydride is supplied by the Czech Republic from the Deza plant at Valasske Mezirici.

Czech Bisphenol A imports & epoxy resin exports

Bisphenol A imports into the Czech Republic totalled 26,584 tons in January to October 2024 against 23,810 tons in the same period in 2023. South Korea increased shipments from 10,518 tons to 21,490 tons. The largest user of bisphenol A in the Czech Republic is Spolchemie at Ust nad Labem, where epoxy resins are produced.

Czech exports of epoxy resins amounted to 42,196 tons in the first ten months in 2024 against 39,577 tons in 2023. Prices fell sharply from €3165.1 per ton to €2275.1 per ton in 2023. Germany remains the largest market for Czech epoxy resins, accounting for 15,695 tons in the first ten months in 2024 which was down from 17,709 tons in 2023. Spolchemie’s capacity for epoxy resin production amounts to 100,000 tpa.

Hungarian aromatic trade Jan-Sep 2024

Hungarian benzene exports amounted to 32,901 tons in January to September against 30,909 tons in the same period in 2023. Benzene production in Hungary takes place at Szazhalombatta. Shipments from this refinery to the Czech Republic dropped from 11,900 tons to 3,259 tons whilst shipments to Poland dropped from 17,014 tons to 15,352 tons.

Toluene imports into Hungary amounted to 31,284 tons in January to September last year for costs of €26.783 million. This increased from 25,854 tons in the first nine months in 2023 for costs of €29.418 million. Toluene is used by BorsodChem in the production of TDI.

Hungarian TDI-MDI exportsJan-Sep 2024

Hungarian TDI exports rose in January to September to 184,151 tons against 177,686 tons in January to September 2023. Average prices dropped slightly from €2579.8 per ton to €2538.3 per ton. Multiple factors have influenced the decline in prices last year such as polyurethane demand and feedstock costs.

Exports of TDI from Hungary to Belgium rose from 23,834 tons in the first nine months last year to 24,801 tons in January to September, whilst volumes to Italy increased from 20,492 tons to 22,159 tons.

In Central Europe shipments to Poland increased from 19,433 tons to 21,289 tons and rose to Turkey from 24,317 tons to 28,292 tons. Shipments to Romania dropped from 10,817 tons to 10,458 tons.

MDI exports from Hungary amounted in January to September to 162,840 tons against 122,487 tons in January to September 2023. MDI export prices have undergone a different cycle to TDI in the past two years but have reached similar levels standing at €1935.1 per ton in 2024 against €2538.3 for TDI.

Poland was the largest destination for Hungarian MDI exports, taking 28,893 tons in the first nine months in 2024 versus 23,836 tons in January to September 2023. Exports to France dropped from 7,188 tons to 5,402 tons whilst to Germany exports increased from 15,436 tons to 16,693 tons.

Central European isocyanate tradeJan-Oct 2024

TDI prices in Europe were relatively stable last year allowing an improvement of sales over 2023. This is despite the fact that demand for TDI was sluggish from the downstream polyurethane industries. The European market has been helped to some extent by tightness in the US market and continued logistical problems for supplying isocyanates from Asia.

TDI imports into Poland amounted to 62,889 tons in January to October 2024 against 58,106 tons in January to October 2023. Prices of TDI imported into Poland dropped from €2603.0 per ton last year to €1999.9 per ton. Hungary was the largest supplier in the first ten months in 2024, shipping 25,716 tons to Poland versus 23,934 tons in January to October 2023.

MDI imports into Poland totalled 142,335 tons in January to October 2024, up against 109,256 tons in January to October 2023. Average prices dropped from €2103.9 per ton to €1923.6 in January to October 2023.

Germany increased MDI shipments to Poland to 39,520 tons in the first ten months in 2024 against 29,708 tons in January to October 2023, whilst imports from Hungary amounted to 33,649 tons against 26,314 tons. Belgium increased shipments of MDI to 29,744 tons in last year from 19,253 tons in the same eight months in 2023. Other suppliers included the Netherlands and South Korea.

MDI imports into the Czech Republic totalled 34,751 tons in January to October 2024 against 31,376 tons in the same period in 2023. Average prices dropped from €2224.0 per ton to €2080.4 per ton. The leading supplier in 2024 was Belgium which shipped 8,512 tons against 7,954 tons in January to October 2023. Imports from Hungary dropped from 9,076 tons to 7,388 tons.

European polyol market challenges

Downstream markets for polyether-polyols were severely affected in 2024 due to the macro-environment. The upholstered furniture industry was particularly affected, with many furniture manufacturers having to reduce production or even face the risk of bankruptcy due to falling demand. Automotive production has declined due to supply chain disruptions and weak demand, further reducing demand for polyether polyols.

Polyether polyol suppliers in Europe were forced to reduce production levels last year after cost pressures were faced from propylene oxide prices. The overall market is tight due to weak demand, especially in the automotive and upholstered furniture sectors, which have demonstrated a significant reduction in demand for polyether polyols.

Czech polyol importsJan-Oct 2024

Czech polyol imports amounted to 38,046 tons in the first ten months last year against 47,156 tons in the same period in 2023, with average prices dropping from €2460.1 per ton to €2306.2 per ton. Polyol prices in Europe continue to suffer from weak demand. The leading supplier to the Czech Republic last year was Belgium shipping 10,851 tons in the period January to October against 14,123 tons in 2023.

Hungarian polyol imports Jan-Sep 2024

Imports of polyols into Hungary dropped in the first nine months last year to 25,200 tons against 36,184 tons in the same period in 2023. Imports increased from 7,758 tons to 8,092 tons in January to September 2024. MOL’s new plant at Tiszaujvaros once fully operational should impact on import volumes in 2025 as the more domestic customers switch to local supply. Relatively low domestic consumption means that MOL will have to export around 75% of its polyol production at full capacity. September export volumes exceeded a thousand tons for the first time, showing early signs of sales from the new plant.

Polish polyol tradeJan-Oct 2024

Polish polyol imports amounted to 118,770 tons in the first ten months in 2024 against 123,340 tons in the same period in 2023. The Netherlands supplied 28,6039 tons in January to October 2024 against 25,287 tons last year, whilst Germany supplied 27,348 tons against 27,527 tons. Polyol import prices into Poland dropped from €2203.9 per ton to €1809.3 per ton.

Exports of polyols from Poland in the first ten months in 2024 amounted to 46,192 tons against 41,734 tons in the same period in 2023. Destinations for deliveries were focused mostly on Europe, led by Italy taking 6,964 tons in the first ten months followed by Germany with 5,062 tons. Average export prices dropped from €2279.3 per ton to €2114.2 per ton.

Hungarian maleic anhydride exportsJan-Sep 2024

Hungary exported 18,164 tons of maleic anhydride in January to September against 14,707 tons in January to September 2023. Average prices dropped from €1249.7 per ton to €1181.5 per ton. Exports of maleic anhydride to Poland from Hungary increased from 2,107 tons in the first nine months in 2024 to 2,107 tons last year.

Hungarian organic chemical exports Jan-Sep 2024

Exports of organic chemicals from Hungary totalled 437,801 tons in the first nine months last year, up from 432,168 tons in the same period in 2023. The largest commodity in the organic chemical sector is TDI, accounting for 41% of Hungarian organic chemical exports in January to September last year by volume and 33% by value. Overall, the value of organic chemical exports from Hungary amounted to €1.126 billion in the first nine months which was down from €1.260 billion in January to September 2023.

Imports of organic chemicals into Hungary amounted to 519,780 tons in the period January to September against 492,170 tons in 2023, with values dropping from €1.285 billion to €1.144 billion. The major organic chemical imports include methanol, toluene, aniline and acrylonitrile.

Hungarian aniline & acrylonitrile importsJan-Sep 2024

Aniline imports into Hungary dropped from 78,095 tons in January to September 2023 to 70,616 tons January to September last year. Inward shipments from BorsodChem-MCHZ in the Czech Republic amounted to 61,575 tons against 46,347 tons in January to September 2023. Belgium supplied 8,917 tons against 18,650 tons in January to September 2023. Cost prices of aniline imports dropped from €1449.9 per ton to €1419.5 per ton.

Acrylonitrile imports into Hungary dropped from 15,155 tons in the first nine months in 2023 to 12,478 tons in the period January to September 2024. Imports from the Netherlands increased from 8,472 tons to 8,918 tons. Average prices for acrylonitrile imports dropped from €2111.6 per ton to €1678.5 last year.

Polish organic chemical tradeJan-Oct 2024

Exports of organic chemicals from Poland increased by volume to 1.060 million tons in January to October 2024 to 1.008 million tons in the same period in 2023, whilst imports dropped from 2.656 million tons to 2.614 million tons.

Export values increased from $803.5 million to $861.6 million, whilst import values rose from $1.748 million to $1.817 million. Overall trade remains lower than before the Ukrainian war started but shows a relative improvement over 2023.

Methanol imports into Poland totalled 563,935 tons in January to October 2024 against 542,178 tons in the same period in 2023. For other organic chemical imports Poland imported 31,300 tons of acetic acid in January to October against 25,722 tons in January to October 2023. The UK provided 13,671 tons in the first ten months last year against 5,730 tons in the same period in 2023. The UK replaced the US as the largest supplier in 2024. Acetic acid prices dropped to €637.8 per ton in the first ten months last year against €817.0 per ton last year. Ethyl acetate imports into Poland amounted to 14,276 tons in January to October 2024 against 17,722 tons in January to October 2023. Belgium provided the largest share of imports. VAM imports into Poland amounted to 17,828 tons versus 15,787 tons in January to October 2023.

Maleic anhydride imports into Poland amounted to 9,649 tons in January-October 2024, down from 10,584 tons in the previous year. Imports are currently sourced from Germany, Hungary and South Korea. Isopropanol imports into Poland amounted to 10,595 tons in January-October 2024, up from 9,788 tons in the previous year. Aside Germany, imports come from the Netherlands and South Africa.

Ethylene glycol imports into Poland dropped in the first ten months in 2023 from 97,946 tons to 46,062 tons in the same period last year. Belgium is the main supplier of glycols to the Polish market. DEG imports dropped to 23,762 tons against 28,520 tons.

Ethylene oxide imports into Poland totalled 16,574 tons in January to October 2024 versus 19,356 tons in January to October 2023. Germany currently represents the main source of inward shipments. Ethylene oxide consumption in Poland is expected to increase after the completion of PCC Exol’s second line of the Ethoxylates II plant at Plock.

Regarding export activity in organic chemicals, Polish shipments of monochloroacetic acid (MCAA) amounted to 27,666 tons in the first ten months against 31,092 tons in the same period in 2023. MCAA production is undertaken by the PCC Group at Brzeg Dolny.

Other organic chemical exports from Poland include acetone where shipments amounted to 9,615 tons in January-October 2024 versus 10,403 tons in January to October 2023. The main markets for Polish acetone exports included Italy, Germany, Romania and Lithuania.

Czech organic chemical trade Jan-Oct 2024

Czech organic chemical exports amounted in value to €1.047 million in the first ten months in 2024, whilst imports dropped from €944.9 million to €1.088 billion. Import volumes declined from 582,800 tons to 572,700 tons, whilst export volumes rose from 467,100 tons to 471,000 tons.

Czech imports of organic chemicals are led by methanol where volumes amounted to 55,594 tons in the first ten months last year against 62,275 tons in the same period in 2023.

Other products imported include oxo alcohols, both in butanols and 2-EH. Normal butanol imports amounted to 6,478 tons last year versus 8,683 tons whilst 2-EH imports increased from 17,824 tons to 18,013 tons. Oxygenated solvent imports include acetone and ethyl acetate, amounting to 4,650 tons and 4,966 tons in the first ten months last year respectively.

Czech methanol imports Jan-Oct 2024

Czech imports of methanol amounted to 55,594 tons in the first ten months in 2024 against 62,275 tons in the same period in 2023. Prices per ton for methanol imports increased from €378.9 per ton to €396.6 per ton.

Poland supplied 40,666 tons to the Czech Republic in the first ten months against 45,133 tons in the same period in 2023, whilst the second largest source of supply came from Germany supplying 5,173 tons.

Hungarian methanol imports Jan-Sep 2024

Methanol imports into Hungary in January to September increased to 72,787 tons against 63,596 tons in January to September 2023. Imports from Germany increased from 20,511 tons to 45,341 tons, replacing sources from Poland and Slovakia last year. Imports from Slovenia amounted to 14,486 tons in the first nine months last year, against 3,828 tons in the same period in 2023. Average prices of methanol imports into Hungary amounted to €433.4 per ton against €461.1 per ton in 2023.

Polish methanol trade Jan-Oct 2024

Polish imports of methanol amounted to 544,393 tons in the first ten months in 2024 against 487,949 tons in January to October 2023. Average prices amounted to €318.6 per ton against €313.1 per ton last year. Poland has been developing alternative sources to Russian methanol before the full embargo took full effect in June.

Belgium was the largest supplier of methanol to Poland in the first ten months in 2024, shipping 135,198 tons against 50,133 tons in the preceding year. Venezuela follows Belgium closely having supplied 112,992 tons in the period January to October 2024 against 20,765 tons in the same period in 2023.

Imports from Trinidad into Poland had been lower for the first six or seven months in 2024 but then increased and amounted to 74,946 tons in the first ten months. Imports from Norway dropped in 2024, from 92,687 tons in 2023 to 45,438 tons.

Exports of methanol from Poland amounted to 148,671 tons in January to June declining from 232,874 tons in January to October 2023.

The largest destination for Polish exports was Germany which took 77,376 tons in the first ten months in 2024 against 68,468 tons in the same period in 2023. Ukraine imported 19,363 tons of methanol from Poland in the first ten months 2024 against 20,474 tons in 2023. Polish methanol export prices increased from €357.0 per ton to €385.6 per ton. Shipments from Poland to Austria fell in 2024, whilst shipments to Romania completely stopped.

Russian chemical production Jan-Oct 2024

The chemical industry in Russia performed relatively well in 2024, and at least for now seems largely detached from the deepening problems facing the Russian economy. Producers oriented towards export activity have benefited from the depreciating currency, but domestic markets are expected to come under pressure this year.

For the first ten months in 2024 Russian ethylene production rose by nearly 200,000 tons to 3.832 million tons whilst propylene production dropped slightly from 2.122 million tons to 2.160 million tons. Most petrochemicals saw higher production in the first ten months in 2024 but increases started to stagnate in the second half of the year.

Regionally the Volga region accounts for the largest share of petrochemical production in Russia. Taken in the context of the war most plants in the Volga region are vulnerable to Ukrainian drones, although it is refineries which represent the main target. In the first ten months last year 49.0% of Russian ethylene production took place in the Volga region, including plants Nizhnekamskneftekhim, Kazanorgsintez, Gazprom neftekhim Salavat, Ufaorgsintez and SIBUR-Kstovo. Those same plants accounted for 37.1% of propylene production which is lower than the Ural region where the largest plant is located.

Of the major chemical products, only methanol has faced lower volumes which can be attributed to lower export activity. This meant that production dropped from 3.244 million tons to 3.167 million tons. In the field of aromatics benzene production increased from 1.052 million tons in the first ten months last year to 1.134 million tons in January to October 2024. Ethylbenzene production rose from 617,800 tons to 681,000 tons, whilst toluene increased from 303,400 tons to 320,800 tons.

Contradiction between Russian methanol and fertilisers

Whilst Russian methanol is sanctioned from trading in Europe fertilisers remain mostly exempt and this has provided a way of utilising surplus natural gas, using it to produce Fertilisers that enter the European market at attractive prices. Not only gas but Russian producers are not faced CO2 emission fees, which burden producers in the EU. Whilst methanol exports to Europe ceased after May 2023 fertiliser exports have risen sharply in the past two years as local European producers have been unable to compete against cheaper Russian gas. Poland has been particularly affected, with values and volumes doubling in 2024.

Russian polymer production Jan-Oct 2024

Russian production of polyethylene increased slightly to 2.865 million tons against 2.624 million tons in January to October 2023. Polypropylene production dropped from 1.786 million tons to 1.740 million tons, whilst styrene polymer production rose from 385,728 tons to 401,952 tons. PVC production dropped from 799,078 tons in January to October 2023 to 739,411 tons in the same period in 2024. The production of polyamide in Russia showed a minor increase to 112,484 tons from 110,077 tons. Russian production of synthetic rubbers increased slightly to 1.169 million tons in January to October 2024 compared to 1.152 million tons in 2023.

Russian ethylene production Jan-Oct 2024

Russian ethylene production totalled 3.834 million tons in the first ten months tons in 2024 against 3.626 million tons in the same period in 2023. ZapSibNeftekhim at Tobolsk produced 1.311 million tons in January to October 2024, up from 1.307 million tons from January to October 2023. Stavrolen increased production from 189,815 tons in the first ten months last year to 219,464 tons in the same period in 2024.

Russian propylene production Jan-Oct 2024

Russian propylene production totalled 2.131 million tons in the first ten months tons in 2024 against 2.108 million tons in the same period in 2023. ZapSibNeftekhim at Tobolsk produced 805,351 tons against 884,495 tons in the same period in 2023. The Volga-Urals region increased from a total of 747,436 tons in January to October 2024 against 792,243 tons in January to October 2023.

Russian propylene domestic sales Jan-Oct 2024

Russian sales of propylene on the domestic merchant market amounted to 344,126 tons in the first ten months in 2024 against 356,035 tons in January to October 2023.

The largest propylene supplier to the domestic market was SIBUR-Kstovo, shipping 153,090 tons against 129,106 tons in January to October 2023.

Lukoil-NNOS reduced propylene sales from 184,658 tons last year from 143,560 tons in 2023, after production was disrupted by Ukrainian drone strikes on the Kstovo refinery in January 2024.

ZapSibNeftekhim purchased 69,719 tons of propylene in the first ten months in 2024 against 89,798 tons in the same period in 2023, whilst Saratovorgsintez reduced purchases from 138,416 tons to 130,090 tons. ZapSibNeftekhim needed to buy propylene monomer in order to support production at Tobolsk which is processed into polypropylene. Saratovorgsintez uses propylene for the production of acrylonitrile.

SIBUR-Khimprom at Perm increased purchases from 31,824 tons to 48,233 tons whilst Omsk Kaucuk increased purchases from 5,523 tons to 17,381 tons. SIBUR-Khimprom uses propylene for the production of oxo alcohols. The increase in propylene purchases by Omsk Kaucuk was required to provide feedstock for the production of isopropanol. The other isopropanol producer in Russia is located at Orsk, where in addition to propylene monomer, propane-propylene fractions are used in the production process.

Russian plastics productionJan-Oct 2024

Russian bulk plastics production amounted to 9.096 million tons in January to October 2024 against 8.854 million tons in the same period in 2023 and against 8.561 million tons in 2022.

Production of ethylene polymers amounted to 3.001 million tons in the first ten months in 2024, down from 2.952 million tons in the same period in 2023. ZapSibNeftekhim is the largest Russian producer, increasing production of polyethylene from 1.326 million tons to 1.336 million tons in January to October 2024, nearly all of which comprised main polyethylene grades HDPE and LLDPE.

Regional production of ethylene polymers Jan-Oct 2024

The largest plant for the production of ethylene polymers is ZapSibNeftekhim at Tobolsk, located in the Ural Federal District. Production totalled 784,800 tons in the first half of 2024 against 782,500 tons in the same period in 2023.

The second largest region in Russia is the Volga Federal District where production fell from 620,700 tons last year to 546,300 tons in January to October 2024. The Volga district includes producers from Bashkortostan including Gazprom neftekhim Salavat and Ufaorgsintez, and from Nizhnekamskneftekhim and Kazanorgsintez. The two Tatar plants produced a total of 801,500 tons of plastics in primary forms in the first half in 2024, which is 7.6% lower than in the same period in 2023.

Nizhnekamskneftekhim is close to start-up of its new EP-600 cracker which should lead to increased Russian polyethylene production in 2025. One of the tasks of the new EP-600 cracker is to supply ethylene to Kazanorgsintez by pipeline which is currently in the process of increasing ethylene polymer capacity by 20% up to 660,000 tpa. The current production capacities of Kazanorgsintez consist of 654,000 tpa of ethylene, 540,000 tpa of HDPE, including bimodal polyethylene (type PE-100), 230,000 tpa of LDPE, including metallocene linear low-density polyethylene (m-LDPE), as well as medium-density polyethylene (LDPE).

Domestic polyethylene market driven by pipe demand

The pipe market has been the main driver of Russian polyethylene consumption in the past two years but the economic slowdown in the second half of 2024 has impacted on polyethylene sales volumes. Consumption of polyethylene in pipe manufacture increased by 3.6% in the first half of 2024 which was down from 8% in the same period in 2023. This falling trend carried on into the second half of the year.

Production of pipes based on thermoplastics dropped from 795,600 tons in the first ten months last year to 756,100 tons in 2024. The third quarter has seen a slowdown due in part to completed projects, and also due to high interest rates which is preventing some programmes from being started. In 2023 fourteen new production facilities were commissioned or modernised which was necessary for the growth from the pipe boom in 2022-2023.

Russian polyethylenetrade Jan-Oct 2024

Russian polyethylene exports to China increased from 238,651 tons in January to October 2023 to 283,052 tons in 2024, with both HDPE and LDPE showing rises. Average prices for Russian polyethylene exports to China rose from $858.8 per ton to $934.4 per ton last year.

Inward shipments of polyethylene from China into Russia amounted to 90,250 tons in the first ten months against 86,176 tons in the same period in 2023. Average prices fell in 2024 to $1528.4 per ton from $1692.1 in the same period in 2023.

Imports of polyethylene shipments into Russia from South Korea came to close to Chinese volumes in the first ten months in 2024, amounting to 83,958 tons against 74,339 tons in January to October 2023. Average prices declined from $1326.3 per ton to $1265.7 per ton.

Russian Chinese polypropylene production Jan-Oct 2024

Russian production of propylene polymers totalled 1.764 million tons in the first ten months in Russia against 1.786 million tons in the same period in 2023. ZapSibNeftekhim reduced production from 945,064 tons to 870,270 tons in January to October 2024, whilst Stavrolen at Budyennovsk increased production from 94,316 tons to 109,784 tons.

The Moscow refinery increased polypropylene production from 112,982 tons to 128,758 tons. The Volga region, including Nizhnekamskneftekhim and Ufaorgsintez, produced 359,178 tons against 344,081 tons. The Siberian region, which includes Tomskneftekhim and Polyom at Omsk, reduced production slightly to 285,251 tons from 285,335 tons.

Russian polypropylene tradeJan-Oct 2024

Both Russian exports of propylene polymers to China and imports from China into Russia dropped in the first ten months in 2024. Exports of polypropylene from Russia to China dropped from 137,070 tons in the first ten months in 2023 to 68,251 tons in the same period in 2024.

Revenues dropped from $107.774 million to $68.251 million. At the same time imports from China dropped from 33,347 tons in the first ten months in 2023 to 30,084 tons in 2024, whilst costs dropped from $93.139 million to $70.793 million. Exports of propylene copolymers to Russia from South Korea amounted to 27,595 tons in the first ten months in 2024 against 14,108 tons in the same period in 2023. Prices for Korean polypropylene increased from $1238.9 per ton to $1387.9 per ton.

Russian PX-PTA-PET production Jan-Oct 2024

Russian paraxylene production amounted to 210,073 tons in the first ten months in 2024 against 191,028 tons in the same period in 2023. Gazprom Neft at Omsk increased production from 52,315 tons to 60,258 tons whilst Ufaneftekhim increased production from 103,714 tons to 105,647 tons.

PTA production at Polief amounted to 299,344 tons in the first ten months in 2024, combined with 180,857 tons of PET at Blagoveshchensk in Bashkortostan. Polief is currently Russia’s largest producer of PET, slightly surpassing Ekopet at Kaliningrad. Ekopet produced 180,354 tons of PET in the first ten months in 2024, whilst the combined plants of Senezh and SIBUR-PETF produced 159,803 tons.

Russian PTA importsJan-Oct 2024

Russian PTA imports from China amounted to 239,732 tons in the first ten months in 2024 versus 202,638 tons in the same period in 2023. Nearly all of the PTA imports from China were shipped to Ekopet at Kaliningrad by rail. PTA import prices averaged $751.055 in the first ten months in 2024, down from $784.335 in 2023. Values of PTA imports amounted to $180.052 million against $158.936 million in 2023 and $170.727 million in the first ten months in 2023.

Tatneft’s PTA project planned for Nizhnekamsk is intended to resolve a large part of the import dependency on China, but this new plant is not expected to be completed for several years. In the meantime, Chinese PTA capacity continues to grow and the three major projects under construction at present could increase the country’s capacity increases by 10.6 million tpa by the end of 2026.

Chinese shipments of PET to Russia amounted to 254,931 tons in the first ten months in 2024 against 186,719 tons in the same period in 2023. Costs of Chinese PET import shipments into Russia rose from $172.098 million to $227.369 million, which meant that average prices fell from $921.7 per ton to $891.9 per ton.

Restrictions to apply to Russian PET packaging from September 2025

From 1 September 2025, three types of plastic containers made of PET packaging will be banned in Russia. PET bottles for the food industry (except for blue, white, green and brown bottles, as well as colourless), multilayer PET bottles and PET packaging with a PVC label (except for shrink bottles) will be outlawed.

Until now producers have been allowed to produce plastic bottles of only a few colours: transparent, blue, green and brown, as well as white for dairy products. The Ministry of Industry and Trade believes that the measure will help reduce containers that cannot be disposed of or recycled, accelerate the transition to environmentally friendly packaging and reduce the impact on the environment. At this stage it is not clear how much impact these changes will have upon total PET consumption in Russia.

Russian synthetic rubber productionand market Jan-Oct 2024

Synthetic rubber production in Russia amounted to 1.165 million tons in January to October 2024 against 1.152 million tons in the same period in 2023. Production tended to stabilise in 2024 but is still much lower than prior to the full-scale Russian invasion of Ukraine. 2021 was the record year for Russian production, totalling 1.414 million tons in the corresponding ten-month period.

Tyre production in Russia required 222,500 tons of synthetic and natural rubber in the first ten months in 2024 against 194,900 tons last year but still lower than the 239,600 tons in the first ten months in 2022. Manufacturers have never fully recovered from the downturn associated with production restrictions due to the COVID-19 pandemic which was then followed in 2022 with the exodus of Western companies from the market.

Regional production of synthetic rubber

In the first ten months last year the Volga region accounted for 827,514 tons of synthetic rubber against 831,017 tons in the same period in 2023.

This region provides the main basis for synthetic rubber production in Russia and includes Nizhnekamskneftekhim, Togliattikaucuk, and Sterlitamak Petrochemical Plant. The region accounts for around 70% of total Russian production.

Voronezhsintezkaucuk is the main producer of synthetic rubber in the Central Federal District of Russia, where volumes amounted to 245,648 tons in the first ten months against 231,142 tons in the same period last year. This region accounts for around 20% of total Russian production.

Isoprene rubber production amounted to 222,338 tons in the first ten months last year followed by butadiene rubber with 215,955 tons and SKS-SKMS rubber with 208,337 tons. The highest value rubber sold by Russia is halogenated butyl rubber where production totalled 87,481 tons in the first ten months last year.

Voronezhsintezkaucuk-expansion of thermoplastic elastomer plant

Voronezhsintezkaucuk plans to increase its capacity for the production of divinyl-styrene thermoplastic elastomers (TEP), or SBS, from its first line of 35,000 tpa to 80,000 tpa. Including the second line which was introduced in 2020, total capacity should rise to 130,000 tpa. The cost of reconstruction of the first line which started nearly ten years ago has been estimated at 11 billion roubles. Preparatory work for the project is now underway, and construction could start in the first half of 2025.

TPEs are widely used in road construction, extending the service life of roads, whilst they are also used in the production of consumer goods, in medical devices and in sports equipment. In 2023, 31,000 km of roads were repaired in Russia which included the laying of 243 million square metres of asphalt concrete. More than half of new and renovated roads contain SIBUR's SBS polymers. In theory, the use of SBS reduces the risks of rutting and cracking and reduces the need to repair roads.

ussian methanol productionJan-Oct 2024

Russia produced 3.083 million tons of methanol in the first ten months in 2024 against 3.203 million tons in the same period in 2023. The largest producer Shchekinoazot decreased production from 1.060 million tons to 1.022 million tons. The Volga region dropped production from 1.368 million tons to 1.276 million tons, whilst the Siberian Federal District (including Gazprom Methanol and Angarsk Petrochemical) reduced production from 550,692 tons to 539,031 tons.

Regarding some of the smaller producers, Azot at Nevinnomyssk increased production from 94,046 tons to 101,072 tons which correlated with the increase in acetic acid production. Other plants where methanol is consumed internally include Akron, Angarsk Petrochemical and Novatek. Akron uses methanol for formaldehyde production, Angarsk Petrochemical uses methanol for MTBE and Novatek uses methanol for gas processing.

Russianmethanol exportsJan-Oct 2024

Russian methanol exports amounted to 998,639 tons in January to October 2024 versus 1303,056 tons in the same period in 2023. Shchekinoazot reduced exports from 516,894 tons to 421,216 tons in the first ten in 2024 whilst Metafrax Chemicals reduced shipments from 309,927 tons to 190,791 tons. Tomet exported 106,562 tons versus 106,590 tons in January to October 2023. Gazprom Methanol reduced exports to 220,396 tons from 307,414 tons.

Azot at Novomoskovsk exported 48,035 tons in January to October shipped mostly through the Temyruk and Kavkaz ports to Turkey. However, shipments though the Kavkaz port stopped in the latter part of the year due to drone damage and the prospect of further attacks.