Polish oil imports Jan-Nov 2023

From the total of 23.189 million tons of crude imported into Poland in the first eleven months, supplies from Saudi Arabia amounted to 45.7% followed by Norway with 34.2%.  By volume Saudi Arabia supplied 10.953 million tons in the first eleven months at €575.2 per ton and Norway supplied 7.930 million tons at €567.5 per ton.   Further supplies from Norway have been ensured after the include Orlen Group agreement with BP providing for deliveries of up to 6 million tons. 

PGNiG Upstream Norway, a member of the Orlen Group, has been awarded 10 new licences on the Norwegian Continental Shelf. In addition, two concessions were won by KUFPEC, which the Polish company took over.  Imports of crude from Russia into Poland dropped to 4.95% in January to November 2023, after no further deliveries were made after February.

Czech crude imports Jan-Nov 2023

Russia supplied 3.960 million tons to the Czech Republic in the first eleven months at an average price of €562.5 per ton.  Deliveries from Russia peaked in the middle of 2023, monthly deliveries have since declined.  In November the Czech Republic imported 530,000 tons of crude of which Russia supplied 232,331 tons against 251,156 tons in October and 340,439 tons in September.  Azerbaijan supplied 1,796 tons in the first eleven months at €660.3 per ton and there are some hopes that Kazakh deliveries could increase in 2024.   The second half this year of 2024 may be particularly difficult for Czech imports, when the capacity of the TAL pipeline will be temporarily limited due to modifications and expansion to 4.0 million tpa. 

MOL’s feedstock imports

Hungary’s crude imports amounted to 4.839 million tons in the first ten months in 2023 against 5.077 million tons in the same period in 2022.  Supplies from Russia declined from 89.1% in 2022 to 67.8% in 2023.  Overall crude import costs dropped from €2.735 million to €2.131 million.  Average prices dropped from €538.2 per ton to €500.0 per ton.  The advantages of cheaper Russian oil from which Hungary was benefiting in the first half of 2023 largely disappeared in the second half of the year as the EU price cap became less effective. 

MOL has reiterated that it will seek to continue supplying Russian oil to its refineries through the Druzhba pipeline through Ukraine, since it does not yet see the possibility of replacing this route.  

The Ukrainian authorities have already warned of their intention to stop the transit of Russian oil after 2024.  Thus, both MOL in Hungary and Slovnaft in Slovakia are striving to find short term and long-term solutions to crude supply.  The only way to transport alternative oil to Slovakia is through the Adria pipeline and the sea port of Omišalj, which is controlled by JANAF.  Owing to vulnerable position facing both MOL and Slovnaft an agreement was reached with JANAF for a one-year contract with a relatively high price for oil transport.  Both MOL and Slovnaft as well as MOL had no choice but to accept the agreement, as the Adria pipeline plays an important role in the security of alternative oil supplies for the CEE region.  MOL will pay several times higher fees compared to the reasonable standard in the EU.

Polish petrochemical production Jan-Nov 2023

Ethylene production in Poland dropped from 426,300 tons in January to November 2022 to 290,100 tons in the same period in 2023, whilst propylene fell from 384,900 tons to 259,700 tons.  Butadiene production at Plock dropped to 44,700 tons from 58,300 tons.  Due to these declines petrochemical production in Poland fell by 21% in the first eleven months in 2023.  In the plastics sector polyethylene production dropped to 245,000 tons in January to November 2023 versus 298,700 tons in corresponding period in 2023.  Polypropylene production at Plock dropped from 295,100 tons to 240,000 tons.   

Hungarian Butadiene Exports (unit-kilo tons)

Hungarian butadiene exports amounted to 35,979 tons in the first ten months in 2023 against 44,463 tons in the same period in 2022.  Shipments into Poland totalled 19,033 tons in January to October 2023 against 33,304 tons in the same period in 2022.  Exports to Germany dropped from 6,049 tons to 1,995 tons and to the Czech Republic rose from 5,110 tons to 14,951 tons.  Average prices for Hungarian butadiene exports fell to €834.6 per ton versus €1020.4 in the first ten months in 2022.

Czech olefin trade Jan-Nov 2023

Exports of ethylene from the Czech Republic amounted to 13,449 tons in the period January to November 2023 against 12,114 tons in the same period in 2022.   At the same imports of ethylene increased from 16,037 tons to 28,746 tons, with the rise in supply required to cover unplanned downtime at Litvinov.  Ethylene exports from the Czech Republic included 5,746 tons to Germany and 5,238 tons to Slovakia.

Czech imports of ethylene rose from 16,037 tons in January to November 2022 to 28,746 tons in the same period in 2023.  Germany supplied 15,902 tons to the Czech Republic in January to November 2023 for €18.784 million, averaging €1.181 per ton.

Due to weak demand for petrochemicals Czech trade in propylene monomer increased in 2023, with imports rising from 33,860 tons to 41,358 tons and exports rising from only 35 tons in January to November 2022 to 19,192 tons in 2023.  From the total exports 16,167 tons were sent to Poland, primarily for internal company usage in the Orlen Group with around a thousand tons each being delivered to Germany, Hungary and Slovakia. 

Imports of propylene were sourced mainly from Germany, accounting for 35,592 tons in the first eleven months in 2023 against 18,800 tons in the same period in 2022.  Average prices for propylene imports dropped from €1407.4 per ton in 2022 to €909.5 per ton in 2023.

Central European styrene trade Jan-Nov 2023

Synthos in Poland imported 65,880 tons of styrene in January to November 2023 against 91,980 tons in January to November 2022.  The Netherlands provided 30,525 tons in the first eleven months versus 51,017 tons in the same period in 2022. 

The Czech Republic has also been an important supplier this year, shipping from Kralupy to Oswiecim.  Styrene import costs into Poland dropped from €1582.0 per ton last year to €1124.7 in the first eleven months in 2023. 

Imports of styrene into Hungary totalled 62,398 tons in January to October 2023, down from 82,024 tons in the same period in 2022.  Prices for styrene imports into Hungary dropped from €1819.4 per ton in January to October 2022 to €1399.5 per ton in 2023.

Central European and Polish plastics industry 2023

Polish plastics manufacturers are seeking ways to minimize costs and maintain financial liquidity, while remaining competitive.  Plastics producers in Poland observed suppressed demand affecting purchases amongst all major customer groups in 2023.  Grupa Azoty’s plastics segment recorded a decline in polyamide 6 sales over the third and fourth quarters, estimated in the range of 20% lower than in 2022. 

The production of plastics and semi-finished products declined in Poland in 2023, with no underlying signs of improved market sentiment by the end of the year.  PVC production in Poland saw the largest fall in the first three quarters last year, dropping by 29% versus the same period in 2022, whilst polypropylene production in Poland fell by 18% and polyethylene by 7%.    The declines in polymer production are largely demand driven.  Plastics processing based on ethylene and propylene polymers fell in Poland in the first three quarters last year from 1.420 million tons to 1.307 million tons. 

Polish polyolefin production Jan-Nov 2023

Production of polyethylene in Poland fell from 298,700 tons in the first eleven months in 2022 to 245,000 tons in the same period in 2023.  Production was down last year mainly due to lower demand.  Polypropylene production fell from 295,100 tons to 240,000 tons.  Currently polypropylene production in Poland takes place at Plock, but depending on Azoty’s finances production could start soon at the new Polimery Police plant.  This plant was expected to start in August or September 2023, but problems with the equipment during the start-up phase has been the cause of the delay.  Hyundai had set the start-up date for 13 February 2024, but this has been revised to some stage in the first quarter.

Czech polyethylene trade Jan-Nov 2023

Czech prices for both exports and imports of polyolefins were lower in the first eleven months this year against the same period in 2022.  Polyethylene exports amounted to 383,112 tons in the first eleven months of which HDPE comprised 330,585 tons. 

 Germany was the largest destination for Czech HDPE exports supplied from Litvinov last year, amounting to 132,784 tons in January to November for €158.026 million.  Other important markets for Czech polyethylene exports include Poland, Italy and Belgium. 

For imports of all forms of polyethylene, Czech inward shipments amounted to 291,978 tons in January to November in 2022 against 273,649 tons in the same period in 2022.  Polyethylene prices dropped from €1935.0 per ton to €1590.1 per ton.  Germany was the largest source of polyethylene imports, amounting to 58,381 tons for €87.994 million, followed by Belgium with 34,241 tons for €52.927 million.

Polish polyethylene trade Jan-Nov 2023

Polish trade in polyethylene declined in the first eleven months in 2023 for both imports and exports, both in volume and value.  Economic conditions affected both demand and pricing.  Poland carries a large deficit in total polyethylene supply, which is part of the reason behind Orlen’s investment project Olefiny 111 at Plock now under construction. 

Polish imports of polyethylene Jan-Nov 2023

Polish imports of polyethylene totalled 1.150 million tons in January to November last year against 1.213 million tons in January to November 2022, with average prices falling from €1788.9 per ton to €1378.7 per ton.  Total costs of polyethylene imports into Poland amounted to €1.579 million in the first eleven months against €2.169 million in January to November 2022. 

HDPE is the largest category of imported polyethylene into Poland, amounting to 392,216 in January to November versus 423,059 tons in January to November 2022.  Germany was the largest supplier of HDPE to the Polish market in 2023.  LLDPE imports dropped from export184,819 tons in January to November 2022 to 152,388 tons in the corresponding period in 2023.  Most of the LLDPE imports were sourced from West Europe, including France, the Netherlands and Germany. 

Polish exports of polyethylene Jan-Nov 2023

Polish polyethylene exports amounted to 221,382 tons in the first eleven months in 2023 against 259,606 tons in the first eleven months in 2022.  Average prices for polyethylene exports from Poland declined to €1354.4 per ton against an average of €1681.8 per ton in the period January to November 2022. 

Revenues from exports decreased from €526.505 million to €355.386 million in January to November 2023.  In the first eleven months last year exports of HDPE from Poland amounted to 174,726 tons versus 214,746 tons in January to November 2022.  LDPE exports dropped from 56,976 tons to 49,400 tons.

Hungarian polyethylene trade Jan-Oct 2022

Hungarian polyethylene exports amounted to 277,075 tons in the first ten months in 2023 versus 290,884 tons in the same period in 2022.  Revenues fell from €460.924 million to €345.376 million in 2023, meaning that average prices dropped from €1584.6 per ton in 2022 to €1246.5 per ton. 

HDPE shipments from Hungary increased from 194,100 tons in January to October 2022 to 188,576 tons in the same ten months in 2023, whilst exports of LDPE decreased from 73,891 tons to 72,762 tons. 

Hungary remains a net exporter of LDPE and HDPE and still a net importer of LLDPE and ethylene copolymers.  In the first ten months in 2023 imports of all grades of polyethylene into Hungary amounted to 185,242 tons against 187,060 tons in the same period in 2022.  Import costs for polyethylene fell to €222.664 million against €286.982 million.

Hungarian import prices for polyethylene decreased on average from €1879.0 in January to October 2022 to €1477.6 in the first ten months in 2023.  Gradual price declines took place throughout the year.

Polish PP Trade Jan-Nov 2023

Polish polypropylene imports, including homo grade and copolymers, fell in January to November 2023 to a total of 809,449 tons versus 854,637 tons in January to November 2022.  Average prices per ton decreased from €1817.1 to €1459.4 per ton.  Homo grade polypropylene imports specifically dropped from 558,473 tons in the first eleven months in 2022 to 518,943 tons in the same period this year, whilst copolymer imports dropped from 273,61 tons to 265,857 tons.

Germany supplied 76,404 tons of propylene copolymers to Poland in the first eleven months for €121.007 million followed by the Netherlands with 43,133 tons for €65.401 million and Belgium supplying 38,852 tons for €63.305 million. 

Regarding export activity from Poland, shipments amounted to 198,025 tons against 248,749 tons in January to November 2022.  Homo polymer grades comprised the main category of Polish polypropylene exports, where Germany was the largest destination taking 32,685 tons in the first eleven months for €43.376 million.  Germany was followed by the Czech Republic taking 27,640 tons from Poland for €32.467 million.

Czech polypropylene production and trade Jan-Nov  2023

Exports of all forms of polypropylene from the Czech Republic amounted to 278,099 tons in January to November versus 226,225 tons in January to November 2022, with average prices dropping from €1754.0 per ton to €1371.1 per ton. 

Homo-grade PP provides the main category of Czech polypropylene exports, amounting to 206,599 tons in January to November 2023 versus 236,414 tons in the same period in 2022.   For imports of all forms of polypropylene, Czech inward shipments increased from 467,724 tons in January to November 2022 to 489,932 tons in January to November this year, with average prices dropping from €1917.1 per ton to €1591.4 per ton. 

Hungarian polypropylene trade Jan-Oct 2022

MOL shipped 104,614 tons of homo grade polypropylene (valued at €139.821 million) in January to October 2023 which was down from 104,614 tons in the same period in 2022 (€176.627 million in value).  Copolymer exports dropped from 82,075 tons (€148.730 million in value) to 75,633 tons (€106.746 million).    Hungarian export revenues dropped for all grades of polypropylene from €340.326 million to €261.825 million, with average prices dropping from €1682.2 per ton to €1358.6.

Czech PVC trade Jan-Nov 2023

Czech exports of PVC dropped in 2023, in the period January to November, to 72,118 tons against 103,300 tons in the same period in 2022.  Due to the much lower prices in 2023 export revenues dropped from €176.583 million to €82.066 million.  Italy was the largest destination for Spolana’s exports this year, shipping 21,422 tons in the first eleven months.  Volumes were down for both exports and imports in 2023 due to recessionary trends.  This impacted on PVC production at Neratovice and the usage of ethylene dichloride.  EDC imports dropped from 62,764 tons in the first eleven months in 2022 to 25,280 tons in 2023.   

Imports of PVC into the Czech Republic dropped from 120,985 tons in January to November 2022 to 115,559 tons in 2023, with import costs dropping from €208.370 million versus €150.922 million.  Most of the imports into the Czech Republic are sourced from within Europe, with the largest suppliers including Germany, Hungary and Poland.  Germany supplied 37,303 tons in the first eleven months last year for €56.417 million.

Polish PVC trade Jan-Nov 2023

PVC demand dropped significantly in 2023 with consumption in all grades dropping by 27% in the first eleven months against the same period in 2022.  Production of PVC, which takes place at Wloclawek in Poland, in addition to both exports and imports fell in 2023 due to a range of economic factors.   

Production fell in January to November 2023 to 155,800 tons versus 254,000 tons in January to November 2022.  Extended cracker downtime at Plock placed limits on Anwil’s production.  This impacted on export activity where shipments dropped from 151,306 tons in the first eleven months in 2022 to 111,398 tons in 2023.  Export revenues dropped from €251.482 million to €131.581 million.  Germany was the largest destination for PVC exports from Poland, most of which are sold in Europe, amounting to 19,079 tons last year for €22.460 million.

Poland is a sizeable net importer of PVC, with imports amounting to 313,737 tons in the first eleven months in 2023 which was down from 391,560 tons in 2022.  Import costs dropped from €747.304 million to €316.607 million.  Whilst Germany was the largest source of PVC imports into Poland, amounting to 70,430 tons in January to November 2023 for €73.186 million, the second largest supplier was South Korea shipping 45,291 tons for €40.730 million.  

Hungarian PVC trade Jan-Oct 2023

Hungarian PVC exports dropped by volume from 191,212 tons in the first ten months in 2022 to 172,777 tons in the same period in 2023, whilst export revenues dropped from €317.431 million to €172.080 million.  Due to lower feedstock costs combined with lower demand PVC prices dropped from €1660.1 per ton in 2022 to €996.0 in 2023.  The largest destination for Hungarian PVC exports is Poland, taking 31,889 tons in January to October 2023 for revenues of €29.638 million. 

Regarding import activity, Hungarian inward shipments of PVC amounted to 30,374 tons in Jan-Oct 2023 versus 37,431 tons in the same period in 2022.  As Hungary imports higher cost plasticized grades costs are higher than for suspension grade and averaged €2733.6 per ton.

Czech synthetic rubber trade Jan-Nov 2023

Czech exports of synthetic rubber amounted to 139,685 tons in January to November this year versus 171,219 tons in the same eleven months in 2022.  For the same time comparisons Imports declined from 147,297 tons to 122,468 tons.  Natural rubber imports into the Czech Republic rose slightly in the first eleven months in 2022 from 81,524 tons to 83,468 tons to 2023.   

Due to the closure of the Kralupy emulsion grade synthetic butadiene rubber plant in March 2023 ESBR exports from the Czech Republic dropped in the first eleven months to 22,350 tons against 54,445 tons in the same period in 2022.  Despite the closure of the Kralupy plant, Synthos remains the largest producer of ESBR in Europe, with 190,000 tpa of at its site at Oswiecim and another 130,000 tpa at Schkopau. 

The Czech Republic exported a total of 98,599 tons of butadiene rubber in the first eleven months in 2023 against 96,921 tons in the same period in 2022.  Besides exports the Czech Republic also imported 23,302 tons of butadiene rubber in the first eleven months in 2023 versus 27,530 tons in the same period in 2022.  Average prices fell from €2209.6 per ton to €1505.5 per ton.  Czech exports of butadiene rubber to India amounted to 12,864 tons in January to November 2023 against 19,626 tons in the same period in 2022.  Other important markets included Poland where exports amounted to 12,829 tons in January to November 2023 against 12,606 tons in the same period in 2022, and South Korea rising from 4,510 tons to 10,878 tons.  

Hungarian synthetic rubber imports Jan-Nov 2023

Hungarian imports of synthetic rubber amounted to 108,968 tons in the first ten months in 2023 versus 113,072 tons in January to October 2022, whilst import costs dropped from €264.096 million to €244.004 million.  Average prices dropped slightly from €2335.7 per ton to €2239.2 in 2023.  Butadiene rubber imports into Hungary rose from 36,975 tons to 37,554 tons, with costs dropping from €80.076 million to €66.504 million.  Imports from Russia into Hungary dropped from 12,082 tons to 2,318 tons in January to October 2023 whilst imports from Indonesia rose from only 98 tons in the first ten months last year to 12,441 tons. 

Imports of halogenated butyl rubber into Hungary dropped from 11,839 tons in the first ten months in 2022 to 6,441 tons whilst SBR imports rose from 26,162 tons to 44,169 tons.  

Polish rubber prices and trade, Jan-Nov 2023

Rubber import prices into Poland for both synthetic and natural have seen gradual declines from January to November last year as a combination of economic factors have taken effect.  Overall, synthetic rubber prices dropped from €2564.2 in the first eleven months in 2022 to €2136.5 in 2023.

Poland imported 245,100 tons of synthetic rubber in January to November last year against 273,519 tons in the same period in 2022.  By category butadiene rubber was the largest product for sale, accounting for 50,932 tons in the first eleven months in 2023 against 54,907 tons in 2022.

Russia supplied 11,766 tons of butadiene rubber to the Polish market in January to November 2023 for €18.619 million, against 20,465 tons in the same period in 2022 for €36.669 million.  Although much reduced than in previous years Russia is legally able to export most grades of synthetic rubber up until June 2024.  In place of Russian supplies into Poland, Synthos from the Kralupy plant was able to increase its butadiene rubber exports last year, amounting to 10,727 tons in the first eleven months versus 6,104 tons in the same period in 2022.  Saudi Arabia became a new supplier of butadiene rubber to Poland in 2022, shipping 4,713 tons in January to November 2022 which increased to 8,242 tons in 2023.

Imports of halogenated butyl rubber from Russia into Poland amounted to 4,788 tons from the total of 9,557 tons in the period January to November 2023.  The US and UK have started supplying Poland to replace some of the Russian imports.   

Synthetic rubber exports from Poland amounted to 251,700 tons in the first eleven months against 267,300 tons in January to November 2022.   Exports of butadiene rubber from Poland amounted to 42,351 tons in January to November versus 41,8854 tons.   Major destinations for Polish butadiene exports were led by Belgium which took 8,545 tons in the first eleven months for €12.716 million.  Exports of butadiene to the Czech Republic amounted to 4,637 tons for €7.512 million and to Brazil 5,842 tons for €8.499 million. 

Poland exported 4,431 tons of halogenated butyl rubber in the first eleven months against 6,912 tons in the same period in 2022.  Halogenated butyl rubber is not produced in Poland and was previously imported from Russia.  Hungary was the largest destination for Polish exports of HBR in the period January to November 2023, accounting for 3,125 tons for €7.244 million.

Polish synthetic rubber production and domestic market Jan-Nov 2023

Throughout 2023, tyre sales to the market declined in all segments except motorcycles.  Passenger car tyres fell by 21%, SUV tyres by 8%, commercial vehicles by 24%, agricultural machinery by 51%, industrial tyres by 35% and truck tyres by 39%. 

For the first three quarters last year rubber consumption in tyre manufacture dropped by around 70,000 tons versus 2022.  Despite the weakness of the tyre market in Poland and Europe in general, Polish tyre manufacturers reported reasonable financial results for the first three quarters. 

Synthos production Jan-Nov 2023

Synthos reduced the production of synthetic rubber in the first eleven months in 2023 to 190,000 tons from 243,900 tons in the same period in 2022.  Polystyrene production at Oswiecim increased from 64,700 tons and the production of expandable polystyrene dropped from 94,300 tons to 83,500 tons. Synthos is the largest producer of expandable polystyrene in Central Europe but has come been confronted against weak demand in 2023 following the significant fall in 2022 as construction market experienced a difficult environment. 

Synthos Synthetic Rubber, with production facilities in Germany, the Czech Republic and Poland, has received ISCC low emission certification for its entire portfolio of synthetic rubber products. These include solution styrene-butadiene rubber (S-SBR), emulsion styrene-butadiene rubber (E-SBR), high and low cis polybutadiene rubber (Nd-BR, Ni-BR and Li-BR) and recycled rubber powder.

Polish aromatic exports Jan-Nov 2023

Polish exports of benzene totalled 136,212 tons in January to November 2023 against 155,008 tons in the same period last year.  Despite similar volumes, average prices dropped to €855.8 per ton from €1066.7 per ton in 2022.  Germany purchased 93,975 tons from Poland in the first eleven months and the Czech Republic 14,135 tons. 

The significant drop in PTA production at Wloclawek in 2023 meant that exports from Poland amounted to only 224,009 tons in January to November last year against 372,415 tons in January to November 2022.  Average PTA prices fell in the respective periods from €901.9 per ton to €845.8 per ton. 

Lower production impacted on exports to the traditional main destination Germany where deliveries fell from 300,841 tons in January to November 2022 to 178,213 tons.   Turkey was the second largest destination for PTA export shipments, taking 11,478 tons versus 5,984 tons in the first eleven months in 2022. 

Polish-Czech aromatic imports Jan-Nov 2023

Phenol imports into Poland amounted to 77,793 tons in January to November 2023 which was down from 95,198 tons in the same period in 2022.  Germany was the dominant supplier of phenol to Poland in 2023, shipping 32,231 tons for €30.553 million. 

Phthalic anhydride imports into Poland increased slightly from 29,045 tons in January to November 2022 to 30,110 tons in the same period in 2023.  Imports from South Korea amounted to 11,722 tons in the first eleven months for €13.005 million, followed by the Czech Republic which supplied 2,683 tons from the Deza plant for a value of €3.929 million. 

In other product areas, styrene imports amounted to 59,710 tons in the period January to November 2023 versus 92,211 tons in the same period in 2022 whilst ethylbenzene imports dropped from 102,921 tons to 97,547 tons.  Nearly all of the ethylbenzene imports come from the Kralupy plant in the Czech Republic. 

Czech benzene imports dropped in the first eleven months to 19,366 tons against 55,135 tons in the same period in 2022, whilst toluene imports dropped to 5,263 tons and styrene rose to 25,051 tons up from 13,020 tons.  Imports of bisphenol A dropped from 24,100 tons to 20,683 tons. 

Czech exports of ethylbenzene amounted to 115,586 tons in the first eleven months against 102,915 tons in the same period in 2022.  All the ethylbenzene was shipped to Oswiecim, all within the structures of the Synthos Group. 

Benzene exports from the Czech Republic dropped in the first eleven months last year to 15,197 tons against 30,256 tons in the same period in 2022.  Germany was the primary market for Czech benzene exports, accounting for 12,054 tons for €10.124 million.

Imports of benzene into the Czech Republic dropped from 65,706 tons in January to November 2022 to 23,531 tons in the same period in 2023.  Benzene imports were sourced in the first eleven months last year from Poland (14,135 tons for €11.990 million), and Serbia (9,415 tons for €8.326 million).  There are two producers of benzene in the Czech Republic including Unipetrol at Litvinov and Deza at Valasske Mezirici.  Deza is owned by Agrofert and intends to increase the production capacity of benzene to 160,000 tpa in addition to toluene to 25,000 tpa.

Bisphenol A imports into Central Europe

Bisphenol A imports into the Czech Republic totalled 25,159 tons in the first eleven months in 2023 against 29,069 tons in the same period in 2022.  Average prices dropped from €2210.9 per ton to €1334.9 per ton. 

The largest user of Bisphenol A in the Czech Republic is Spolchemie at Ust nad Labem, where epoxy resins are produced.  The main source of imports is South Korea which supplied 11,454 tons to the Czech Republic in the first eleven months, almost half of total imports, whilst Poland imported 10,695 tons from South Korea amounting to 80% of total imports. 

Demand for Bisphenol A in Europe is likely to remain volatile in 2024 as macroeconomic headwinds persist whilst a ban on food packaging and new production in China could lead to increased competition from Asian exports.   European BPA production is expected to grow by about 17% compared to 2023, but this only partially offsets the drop in 2023, while European BPA consumption is expected to grow by about 15%, only partially recovering from the previous year.

Central European epoxy resin trade Jan-Nov 2023

Spolchemie’s capacity for epoxy resin production amounts to 100,000 tpa making it one of the largest producers in Europe. 

In the first eleven months in 2023 the Czech Republic exported 43,730 tons of epoxy resins at an average price of €3104.6 per ton against 51,230 tons in the same period in 2022 at an average price of €4528.9 per ton.  The largest market for Czech exports was Germany, taking 19,543 tons in January to November 2023, with Spain providing the second largest destination at 3,301 tons. 

Most of Spolchemie’s epoxy resin production is exported, with a share of the Czech market amounting to only 5%.  Besides Bisphenol A, Spolchemie also uses epichlorohydrin in the production of epoxy resins, which it produces itself from renewable resource (glycerine).   The company more epichlorohydrin than it needs for epoxy resin production and thus exports up to 5,000 tpa.  

Polish imports of epoxy resins totalled 21,643 tons in the first eleven months in 2023 for €98.746 million, whilst exports amounted to 10,389 tons for €40.165 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.  Production volumes are smaller than the Czech producer Spolchemie with output totalling 16,262 tons in 2022 which was down from 19,944 tons in 2021. 

Hungarian aromatic imports Jan-Oct 2022

Hungarian benzene imports In the first ten months in 2023 amounted to 8,051 tons for total costs of €7.595 million, against very little imports in the same period in 2022.  The largest supplier of shipments into Hungary was the Czech Republic which provided 3,296 tons in the first ten months, followed by 2,790 tons from Slovakia.

Toluene imports into Hungary amounted to 32,503 tons in the first ten months for €37.927 million in value.  This compares against 27,698 tons in the first ten months in 2022 for a total value of €29.887 million. 

Prices for toluene averaged €1166.9 per ton in 2023 against €1079.0 in 2022.  Higher cost prices have placed limits on TDI prices. 

Germany was the largest supplier of toluene to Hungary in the period January to October 2023, amounting to 14,574 tons which was down against 15,326 tons in 2022.  Slovakia increased shipments from Slovnaft’s refinery to 4,829 tons from 3,820 tons, whilst Poland reduced shipments from 4,512 tons to 1,398 tons.  The Netherlands was a new supplier to Hungary in 2023, proving 5,822 tons. 

Central European caprolactam market

Over the course of 2023 the European caprolactam and PA6 markets were affected by reduced consumer demand. At the beginning of the third quarter, demand for both products remained low.  Many processors reduced their stocks of raw materials and finished products, accelerating or extending pre-planned repair and maintenance shutdowns.  Cheaper imports of PA6 products from Asia continued.

Poland produced 83,100 tons of caprolactam in the first eleven months in 2023 against 123,200 tons in January to November 2022.  Production volumes settled at a lower range of 7,500-8,300 tons per month in the second half of the year.   

In the first eleven months last year caprolactam imports amounted to 10,442 tons, nearly all of which was supplied from Germany.  Overall, the consumption of caprolactam in Poland dropped to 93,500 tons in 127,500 tons in January to November 2022.

The Czech Republic exported 20,088 tons of caprolactam in January to November 2023 down from 33,788 tons in the same period in 2022.   Average prices dropped from €2648.1 per ton to €1657.1 in 2023.  All of the exports were shipped to European countries.  Italy was the largest destination for Spolana’s exports, reducing shipments from 25,631 tons to 11,215 tons in 2023.

Hungarian TDI-MDI exports Jan-Nov 2023

Hungarian TDI exports dropped in the first ten months this year to 198,336 tons against 197,661 tons in January to October 2022.  Average prices dropped from €2734.7 per ton to €2519.2 in 2023.  Prices dropped from a peak of €3255.4 per ton in January to €1973.3 per ton in October 2023 which measured against €3405.1 per ton in October 2022. 

Exports of TDI to Belgium rose from 19,521 tons in the first ten months in 2022 to 25,357 tons in January to October 2023 whilst volumes to Italy fell from 27,990 tons to 23,116 tons.  In other parts of West Europe Hungarian TDI exports to Portugal dropped from 9,299 tons to 9,231 tons, and to Spain rose from 7,896 tons to 8,541 tons.  In Central Europe shipments to Poland fell from 25,170 tons to 22,317 tons and Romania from 11,760 tons to 12,353 tons.

MDI exports from Hungary dropped in the first ten months in 2023 to 119,098 tons from 165,070 tons in the same period in 2022.  The most significant drop in sales was the US where no shipments were made in the first ten months against 23,242 tons in January to October 2022.  MDI export prices underwent a different cycle to TDI, dropping from €2583.2 per ton in January to October 2022 to €2002.3 per ton in 2023.

Poland was the largest destination for Hungarian MDI exports, shipping 25,229 tons in the first ten months in 2023 versus 27,986 tons in the same period in 2022.  Romania is the second largest market in Central and South East Europe, taking 13,497 tons in the first ten months in 2023 which was down from 17,149 tons.   

Central European isocyanate trade Jan-Nov 2023

MDI imports into the Czech Republic totalled 35,771 tons in January to November 2023 against 33,524 tons in the same period in 2022.  Average prices dropped from €2712.1 per ton to €2191.4 per ton.    The leading supplier was Hungary which shipped 9,876 tons in the first eleven months against 7,884 tons in the same period last year. 

TDI imports into the Czech Republic amounted to 6,643 tons in January to November in 2023 versus 6,903 tons in January to November 2022.   

MDI imports into Poland totalled 136,908 tons in January to November 2023 against 138,124 tons in January to November 2022.  Average prices dropped from €2595.1 per ton to €2023.6 in January to November 2023.  Germany increased shipments to 38,511 tons against 35,888 tons in January to November 2022, whilst imports from Hungary amounted to 33,408 tons against 34,957 tons. 

TDI imports into Poland amounted to 64,751 tons in January to November against 68,395 tons in the same period in January to November 2022.  Prices averaged €2542.5 per ton in the first eleven months in 2023 against €2925.7 per ton in 2022. 

The cost of toluene was one of the factors behind the rise in TDI prices in the first half of 2023 but then slowed down in the third and fourth quarters allowing TDI prices to move downwards.  Besides imports, Poland exported 4,256 tons of TDI in 2023, of which 796 tons was shipped to Russia. 

Czech polyol imports Jan-Nov 2023

Czech polyol imports increased in the first eleven months to 41,795 tons against 38,941 tons in the same period in 2022, with average prices rising from €2367.5 per ton last year to €2420.7 in the first eleven months in 2023.  The leading supplier to the Czech market was Belgium which shipped 12,966 tons in the period January to November 2023 against 10,364 tons in the same period in 2022, followed by Germany which exported 7,239 tons down from 7,879 tons. 

Hungary imported 33,467 tons of polyols in the first ten months in 2023 against 27,624 tons in the same period in 2022.  The largest source of imports came from Belgium in the first ten months, amounting to 12,694 tons against 2,218 tons in the same period in 2022.  Deliveries from China amounted to 8,671 tons versus 10,028 tons. 

Polish polyol trade Jan-Nov 2023

Polish polyol imports amounted to 134,710 tons in the first eleven months in 2023 against 128,453 tons in the same period in 2022.  The major sources of imports came from Belgium, Germany and the Netherlands.  Polyol import prices dropped from €2611.4 per ton to €2168.3 per ton.  The largest source of imports came from Germany in the first eleven months, amounting to 29,924 tons against 23,213 tons in the same period in 2022.

Exports of polyols from Poland in the first eleven months amounted to 51,823 tons against 54,400 tons in the same period in 2022.  Destinations for deliveries were focused mostly on Europe in 2023, led by Germany taking 5,365 tons in the first eleven months followed by Italy taking 5,001 tons.  Due to lower prices this year export revenues dropped from €118.631 million to €95.127 million. 

With the construction of a fifth production line for polyether polyols two years ago, PCC Rokita increased its capacity to 110,000 tpa (measured in terms of standard polyols). The fifth production line is mainly used to manufacture intermediate products for the further polyols production.

The PCC Rokita Group is the largest polyol producer for the production of polyurethanes used in the automotive, furniture and construction industries. The production of polyurethanes in Poland is carried out by Ciech Pianki at Bydgoszcz.  

This company has a production capacity of about 30,000 tpa and is one of the largest domestic producers in its industry.  In the first three quarters last year Ciech Pianki reduced revenues from polyurethane sales from zl 248.9 million to zl 195.8 million. 

Polish oxide-glycol trade

Ethylene oxide imports into Poland totalled 19,356 tons in January to November versus 11,054 tons in January to November 2022.   Poland stopped importing ethylene oxide from Russia in May 2022 and Germany currently represents the main source of inward shipments.  Ethylene oxide is used in Poland mostly by PCC Rokita and PCC Exol.

Ethylene glycol imports increased in the first eleven months to 97,946 tons versus 52,315 tons in the same period last year.  Belgium supplied the largest volume of glycols to the Polish market, shipping 83,696 tons in January to November 2023.    

Regarding diethylene glycol (DEG), imports amounted to 29,677 tons in the first eleven months in 2023 against 27,949 tons in the same period in 2022.  In the past two years imports from Saudi Arabia have increased sharply amounted to 13,453 tons in the first eleven months in 2023, representing 45% of total imports.   Whilst increased consumption is one factor behind the increased imports from Saudi Arabia, the disappearance of Russian DEG has also meant that Polish consumers have had to buy from other sources.  Imports from Russia amounted to 7,807 tons in the whole of 2021 but dropped to 1,192 tons in 2022 and zero in 2023.

PCC Rokita-propylene oxide supplies & prices

PCC Rokita’s capacity for propylene oxide was expanded to 57,000 tpa two years ago which has helped reduce the dependency on imports which previously had played an important part in the company’s polyol production.  The reduction in imports has almost coincided with the gradual rise in propylene oxide prices over the past few years, increasing on average from €1332.0 per ton in 2020 to €2190.1 in 2023.  By volume propylene oxide imports dropped from 17,545 tons in 2017 to 257 tons in 2023. 

The contract price for propylene oxide in Europe for January 2024 deliveries has been settled within the range of €2,000 to €2,100 per ton, maintaining consistency with the pricing observed in December.  This shift in pricing may be attributed to various market influences, including supply and demand dynamics, raw material costs, and broader economic factors impacting the industry

Hungarian maleic anhydride exports Jan-Oct 2023

Hungary exported 17,017 tons of maleic anhydride in the first ten months in 2023 against 17,761 tons in the same period in 2022, with average prices dropping from €2134.1 per ton to €1170.7 per ton.  Export shipments to Italy and Austria amounted to 2,466 tons and 2,389 tons in the first ten months.  Exports to Poland from Hungary dropped from 4,348 tons in January to October 2022 to 2,413 tons.     

Hungarian acrylonitrile imports Jan-Oct 2023

Hungary imported 14,691 tons of acrylonitrile in the first ten months in 2023 against 52,698 tons last year.  The Netherlands was the main source of imports in both years, shipping 9,403 tons in January to October 2023 versus 34,386 tons in the same period in 2022.  Acrylonitrile prices dropped on average from €2300.0 per ton to €2090.4 per ton in 2023. 

Hungarian aniline imports Jan-Oct 2023

Aniline imports into Hungary amounted to 84,866 tons in the first ten months in 2023 against 149,740 in the same period in 2022.  Shipments from BorsodChem-MCHZ in the Czech Republic amounted to 50,861 tons against 129,574 tons in the same period last year. 

Belgium supplied 20,907 tons in the first ten months last year against 12,705 tons in the same period in 2022.  Cost prices of aniline imports dropped from €1857.4 per ton to €1442.8 in 2023.

BorsodChem opened its new plants for nitrobenzene and aniline at the start of July last year.  The nitrobenzene plant consists of a capacity of 240,000 tpa and aniline at 200,000 tpa, in addition to a plant for concentrated nitric acid plant with a capacity of 1,000 tpa. 

Polish organic chemical trade Jan-Nov 2023

Exports of organic chemicals from Poland fell from 2.032 million tons in January to November 2022 year to 1.350 million tons in January to November 2023, whilst imports dropped from 4.656 million tons to 3.604 million tons.    High energy prices played a key role in driving up values last year which are still impacting on production and trade.

Methanol imports into Poland totalled 581,583 tons in January to November last year against 867,543 tons in the same period in 2022.  For other organic chemical imports Poland imported 33,853 tons of acetic acid in January to November against 41,916 tons in January to November 2022.  The US was the leading supplier, shipping 15,172 tons followed by the UK with 8,644 tons. 

Ethyl acetate imports into Poland amounted to 16,334 tons in January to November last year against 13,109 tons in January to November 2022.  Belgium provided the largest share of imports.  VAM imports amounted to 16,084 tons versus 16,052 tons.  Regarding export activity in organic chemicals, Polish shipments of monochloroacetic acid (MCAA) rose sharply in the first eleven months to 34,999 tons against 11,999 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.   

The production plant for ultra-pure monochloroacetic acid (MCAA), which went into operation in 2016, significantly extending the value chain of the chlorine segment.  It also enabled backward integration, as MCAA serves as a raw material for the betaine production of the surfactants segment. Ultra-pure MCAA is used as an intermediate primarily in the manufacture of body care products, but also in the agricultural, food, and pharmaceutical industries.  Other organic chemical exports from Poland include acetone where shipments amounted to 11,672 tons in the first eleven months last year versus 14,240 tons in January to November 2022.  Normal butyl acetate exports dropped from 11,901 tons to 9,823 tons in January to November 2023. 

Central European methanol trade Jan-Nov 2023

Czech imports of methanol amounted to 72,318 tons in the first eleven months last year against 73,673 tons in the same period in 2022. 

 Russia accounted for 6,237 tons against 26,137 tons in January to November 2022 whilst imports from Poland increased from 37,837 tons to 51,9441 tons.  Prices per ton for methanol imports into the Czech Republic dropped from €466.2 in the first eleven months in 2022 to €378.9 in January to November 2023. 

Imports of methanol into Poland dropped in the first eleven months in 2023 to 581,583 tons from 867,543 tons in 2022.  The sanctions on Russian methanol imports is the underlying reason for the drop in import volumes.  Imports from Russia dropped from 682,488 tons in January to November 2023 to 188,185 tons in the same period in 2023. 

 In place of Russian exports Poland increased imports from Norway, rising from 30,160 tons to 101,129 tons and from new countries such as Trinidad which supplied 43,007 tons in 2023 and Venezuela which supplied 38,759 tons.  Average costs for Polish methanol imports dropped from €380.4 per ton in 2022 to €301.8 in 2023.

Exports of methanol from Poland amounted to 248,294 tons in January to November against 425,483 tons in January to November 2022.  Revenues from Polish exports of methanol dropped from €181.657 million to €90.869 million in January to November 2023, with export prices dropping from €425.3 per ton to €355.1 per ton.  Ukraine imported 22,841 tons of methanol from Poland in the first eleven months against 18,484 tons in the same period in 2022. 

 Polish exports to Romania dropped from 45,384 tons in the first eleven months in 2022 to 18,927 tons in the same period in 2023.  The Romanian methanol market has undergone significant changes since the outbreak of the war in Ukraine in February 2022, as nearly all of the country’s imports were sourced from Russia and delivered by rail through Ukrainian territory. 

Imports of methanol from Azerbaijan have largely replaced Russian and Polish imports, and Romania is now SOCAR’s largest customer in the EU region.    Methanol imports into Hungary in the first ten months in 2023 dropped to 70,992 tons against 100,941 tons in the same period in 2022.  Imports from Russia dropped from 21,526 tons to zero and from Slovakia from 21,056 tons to 4,591 tons.  Germany and the Netherlands became more important suppliers in 2023.

Grupa Azoty Jan-Nov 2023

Production volumes for Grupa Azoty were mostly lower in the first eleven months in 2023 against the same period in 2022, despite some minor improvements output in the latter part of the year.

Strong competition from Asian fertiliser producers, which benefit from both competitive labour costs and lower energy prices have been a major problem in the past two years.  Moreover, the plastics segment has had a very difficult time in conjunction with the downturn in the construction and automotive industries. High costs combined with weak demand have presented challenges to Grupa Azoty in managing production and sales.  In the chemical segment, prices are falling due to lower demand from European customers and thus effectively all the main product groups are under pressure. 

Market cycles would not represent such a problem were it not for the group’s overinvestment. The project in Police, although strategically important, currently seems to be too expensive for Azoty's capabilities. As a result, the company currently has high debt, high financing costs, and a new complex that is not yet generating cash.  Orlen has indicated that it is ready to take over the Pulawy plant from Grupa Azoty, but for at least the time being this interest has been rejected.

Chimcomplex new cogeneration plant completed

Chimcomplex has completed a high-efficiency cogeneration plant with a capacity of up to 8 MWe at its subsidiary in Ramnicu Valcea.  The overall objective of the project was to increase the energy efficiency of Chimcomplex Borzesti-Ramnicu Valcea Branch by installing a high-efficiency trigeneration plant with a capacity of 6 MWe and achieving savings in primary energy consumption.

Regarding other investments, Chimcomplex Borzesti intends to spend around €98 million on construction of a plant that will produce epoxy resins.  Chimcomplex signed a financing agreement with the Ministry of Economy in December last year for the development of an epoxy resin production unit. State support will provide around 40% of the project value. 

Green hydrogen Central-East Europe

Chimcomplex is the largest producer of green hydrogen in East Europe, with an annual production of over 6,000 tons.  Furthermore, it is the only company in south east Europe with real potential to use hydrogen as a raw material for green chemicals.

Slovak chemical producer Duslo has received a grant of €58 million to support its green hydrogen production project.  The company aims to replace natural gas with hydrogen in ammonia production at its Sala production site.  Duslo is the largest individual gas consumer in Slovakia, and the use of alternative solutions may also affect the overall consumption of fossil fuel in the country.   The upcoming project will ensure the maintenance of work activities not only with the production of hydrochloric acid itself, but also with other plants.   Duslo wants to supply hydrogen from its own photovoltaic and wind power plants. A photovoltaic power plant and a wind park are to be built near the chemical plant.  The generated electricity is to be exported to the local distribution network and used in a 20 MW electrolyser, which produces more than 2,100 tons of hydrogen annually.   

Russian petrochemical and organic chemical production Jan-Nov 2023

In spite of EU sanctions on a wide range of Russian chemical production, output remained relatively stable in 2023 based on the first eleven months.  Olefin production for neither ethylene nor propylene has not dropped, and butadiene was the only olefin monomer to record lower output which itself was due to lower production of synthetic rubber.  Aromatic monomer and derivative production in 2023 was largely comparable to 2022 and 2021, based on the first eleven months, whilst volumes of oxygenated solvents have performed relatively well. 

Russian export activity for chemical products dropped by 36% in the period January to November 2023 against 2022 domestic producers have been helped by higher domestic demand.   Methanol is the standout product where lower exports have impacted sharply on Russian production volumes, dropping from 4.122 million tons to 3.531 million tons in January to November 2023.  The decline in production may have been greater were it not for relatively stable domestic consumption. 

Overall gaps have appeared in the Russian domestic marketplace for chemical products that were previously occupied by Western companies.  However, despite the relative success of withstanding the impact of sanctions there are other difficult trade winds facing the chemical industry on the horizon.  In particular, the investment cycle in Russia in the chemical sector has been abrupted sharply by sanctions, the budgetary support for the war and general loss of market access.  Probably the only real investment taking place these days is from internal investors and even then, projects are restricted by a lack of access to technology and advanced equipment. 

Russian polymer production Jan-Nov 2023

The production of plastics in Russia totalled 9.768 million tons in the first eleven months in 2023 against 9.378 million tons in the same period in 2022.   Russian production of polyethylene rose from 3.174 million tons to 3.242 million tons in the first eleven months in 2023.  This market has been particularly helped by the increased consumption in pipe manufacture for water and gas pipelines. 

Polystyrene production amounted to 521,100 tons in January to November against 531,700 tons in the same period in 2022.  PVC production amounted to 886,100 tons in the first eleven months in 2023 versus 888,000 tons in 2022. 

The production of formaldehyde resins has seen a revival this year, exceeding production in the first three quarters from 2022 by 5.2%.  September was the key month where production exceeded volumes in September 2022 by 32.6%, totalling 113,000 tons. 

The production of polyamide in Russia fell from 127,500 tons in the first eleven months in 2022 to 121,000 tons in the same period in 2023.  Russian production of synthetic rubbers amounted to 1.277 million tons in the period January to November 2023 compared to 1.405 million tons in January to November 2022. 

Russian ethylene production, Jan-Nov 2023

Russian ethylene production totalled 4.162 million tons in the first eleven months in 2023 against 3.924 million tons in the same period in 2022.  Regarding individual producers ZapSibNeftekhim at Tobolsk produced 1.572 million tons in January to November 2023, up from 1.285 million tons from January to November 2022.  Nizhnekamskneftekhim produced 586,983 tons of ethylene in the first eleven months in 2023 against 600,464 tons, whilst Kazanorgsintez dropped from 568,549 tons to 532,213 tons.  Kazanorgsintez reduced production due to extended downtime.  Extra ethylene for Kazanorgsintez is purchased from Nizhnekamskneftekhim and supplied through the capacity of the Tatar-Bashkir ethylene pipeline.  This is the most important ethylene pipeline in Russia and can transport up to 250,000 tpa. 

Other important ethylene producers included SIBUR-Kstovo in the Nizhniy Novgorod region which produced 354,966 tons versus 320,400 tons versus 320,403 tons.  SIBUR-Kstovo does not consume ethylene internally but sells to RusVinyl for PVC production and SIBUR-Neftekhim for ethylene oxide and ethylene glycol production. 

In Bashkortostan Gazprom neftekhim Salavat produced 267,714 tons against 304,206 tons, whilst Ufaorgsintez increased production from 86,684 tons to 97,640 tons.  Stavrolen at Budyennovsk reduced ethylene production in the first eleven months from 295,770 tons in 2022 against 282,120 tons in 2023.  

SIBUR-Khimprom at Perm in the north east Urals stopped the production of ethylene and propylene on 17 January for a few days following a fire.  This fire occurred due to technical complications.  In the first eleven months in 2023 SIBUR-Khimprom produced 46,688 tons of ethylene and 65,430 tons of propylene. 

Regarding ethylene projects in Russia Nizhnekamskneftekhim hopes to complete the construction of the EP-600 cracker this year.  Most of the heavy and important equipment for the project had been delivered to the site before sanctions were applied to Russia following the invasion of Ukraine.

For other projects international sanctions have affected completion dates as Russian companies have been forced to seek out technological alternatives.  Doubts regarding the completion of these investments will persist until the project schedule is close to the end.  Irkutsk Polymer Plant has delayed its start-up date of its 650,000 tpa polyethylene plant and 2025 is the earliest date when production might start. 

The start-up date of SIBUR’s Amur Gas Chemical Complex had been set originally for 2024-2025, but 2027 is now the earliest date for completion.  SIBUR’s jv partner for this project is Sinopec on which the Russian side had hoped with lead to access to Chinese funds.  However, Chinese banks have refused to finance the Amur gas chemical project in fear of secondary sanctions from the US.  As a result, SIBUR has had to submit a request to the Russian government to provide financial support for completion of the project. 

Russian propylene production Jan-Nov 2022

Russian propylene production amounted to 2.547 million tons in the first eleven months in 2023 against 2.504 million tons in the same period in 2022.  The combined ZapSibNeftekhim Tobolsk plants raised production from 819,825 tons in the first eleven months in 2022 to 963,622 tons.  In Tatarstan Nizhnekamskneftekhim produced 289,393 tons of propylene in the first eleven months in 2023 against 294,997 tons in 2022 whilst Kazanorgsintez reduced production to 39,497 tons from 45,916 tons.  

In Bashkortostan Gazprom neftekhim Salavat produced 101,359 tons of propylene in the first eleven months in 2023 versus 133,057 tons, whilst Ufaorgsintez increased production from 137,204 tons to 157,849 tons.  In the Nizhny Novgorod region SIBUR-Kstovo increased production of propylene from 138,961 tons to 149,331 tons.  Lukoil-NNOS at Kstovo reduced production from 251,859 tons to 223,953 tons. 

Russian sales of propylene on the domestic merchant market amounted to 395,035 tons in the first eleven months in 2023 against 343,652 tons in the same period in 2022.  The largest propylene supplier to the domestic market was Lukoil-NNOS, shipping 202,772 tons against 162,942 tons in January to November 2022 followed by SIBUR-Kstovo which increased sales from 99,377 tons to 145,627 tons. 

Russian propylene exports & sales Jan-Nov 2022

Propylene exports from Russia amounted to 109,300 tons in the first eleven months in 2022 against 140,500 tons in the same period 2021.  Lukoil-NNOS reduced export shipments from 85,800 tons to 63,300 tons whilst SIBUR-Kstovo reduced shipments from 15,400 tons to 10,600 tons.  European markets have been gradually closed for Russian exporters.

Due to lower production ZapSibNeftekhim increased merchant propylene purchases, mostly from other SIBUR plants.  Purchases increased from 60,900 tons in January to November 2021 to 91,400 tons in the same period in 2022.  Saratovorgsintez increased purchases of merchant propylene, used for acrylonitrile production, from 99,500 tons to 123,800 tons in January to November 2022, mostly supplied by Lukoil from its Kstovo refinery.  SIBUR-Khimprom at Perm reduced purchases from 47,800 tons to 35,900 tons.

Russian butadiene production Jan-Nov 2023

Russian butadiene production totalled 494,997 tons in the first eleven months in 2023 against 575,949 tons in the same period in 2022. 

The largest producers ZapSibNeftekhim and Nizhnekamskneftekhim both showed lower production as 2022 progressed.  ZapSibNeftekhim produces butadiene only for merchant market sales whilst Nizhnekamskneftekhim processes most of its butadiene into rubber SKD-N and SKD-L are butadiene rubbers based on neodymium and lithium catalysts.

Russian plastics production Jan-Nov 2023

Russian bulk plastics production amounted to 9.768 million tons in January to November last year against 9.378 million tons in the same period in 2022 and 9.969 million tons in 2021. 

Although the production of plastics increased to record levels in 2023, not all products have seen strong demand.   Polyethylene was the leading product, whilst polyamide production has been affected by lower tyre consumption and also exports.  PVC production has particularly been affected lower construction in the domestic market. 

Polyethylene production amounted to 3.242 million tons in the first eleven months in 2023, up from 3.174 million tons in the same period in 2022.  The polyethylene market has recovered somewhat after recording a decline in sales of 8.2% in 2022 over 2021.  ZapSibNeftekhim remains the largest producer of polyethylene and polypropylene in Russia, with stable volumes produced for both products in 2023. 

As PVC demand recovered to an extent in the latter part of the year this led to increases in production and volumes for the first eleven months were only slightly down on 2022.  Polyamides remain under pressure having dropped by 20.2% in the first eleven months in 2023 against 2022. 

Russian polyethylene trade Jan-Nov 2023

Russian polyethylene exports to China dropped from 459,737 tons in January to November 2022 to 186,299 tons, with values dropping from $377.3 million to $236.6 million.   Export grades from Russia to China comprise mostly HDPE and LDPE.  Export shipments peaked in August and September in 2022 when a combined total of 165,800 tons were delivered which dropped to 31,000 tons in the same two months in 2023.

By contrast inward shipments of polyethylene from China into Russia increased by value in the first eleven months to 95,891 tons versus 48,379 tons in 2022 and 21,983 tons in 2021.   Russian imports of polyethylene from China started rising in the last few months in 2022 and then stabilised in the range of 7-9,000 tons per month throughout 2023. 

The most expensive grades of polyethylene exported by China to Russia include ethylene-vinyl acetate and ethylene-hexene copolymers.  Average prices for polyethylene imports fell in the first eleven months to $1177.1 versus $1675.9 in the same period in 2022 and $1542.4 in 2021.

In terms of trade balance Russia is still a net exporter of polyethylene to China both in volume and value, but the gap is narrowing.  Imports from China amounted to $236.2 million in the first eleven months in 2023 versus exports of $162.1 million.  Overall, since the start of the war polyethylene trade has been adversely affected by sanctions and isolation from European markets.  In 2022, polyethylene exports from Russia decreased by 17.6%, which was due to the introduction of a sanctions ban on the import of ethylene polymers from Russia to the EU countries.

Russian polypropylene production Jan-Nov 2023

Production of polypropylene in Russia in the first eleven months in 2023 amounted to 1.931 million tons against 1.818 million tons the same period in 2022.  The forecast for 2023 is a total of 2.167 million tons.  In the first eleven months in 2023 ZapSibNeftekhim accounted for 52.1% of polypropylene production, whilst Nizhnekamskneftekhim took 17.9%.   

Russian polypropylene production totalled 1.994 million tons in 2022, with the highest monthly volume reported in January at 191,048 tons and the lowest in October at 138,944 tons.   Last year’s decline in production was influenced by a decrease in sales of polypropylene within the country, as well as a decrease in export supplies.  

Market possibilities for polypropylene and other plastics in Russia are constrained significantly by the shortage of labour.  A new plant was established recently at Dubna near St Petersburg where polypropylene and polycarbonate are to be processed but finding qualified workers for the 120 jobs Is proving very difficult.   The company plans to produce up to 24,000 tpa of plastics, including polycarbonate and polypropylene.   

Russian polypropylene producers-capacity expansions

Of the Russian polypropylene producers Polyom at Omsk has recently raised capacity to 224,000 tpa, which is about 20% higher than in 2013 when the plant started production.  In addition to raised capacity the plant has increased the range of grades offered to customers.  SIBUR’s new project for a polypropylene plant at Tobolsk, with a capacity of 570,000 tpa, is designed in part to use the propane available already at the site.  The plant is targeted for a start-up in 2027.  The dehydrogenation of propane and the construction of a polypropylene plant at Tobolsk will allow SIBUR to utilise the feedstock instead of export. 

Russian-Chinese polypropylene trade Jan-Nov 2023

China increased export sales of polypropylene to Russia to 57,099 tons in the first eleven months in 2023 against 31,404 tons in the same period in 2022.  Revenues for Chinese exporters increased from $69.555 million to $105.609 million.  Average prices amounted to $1898.5 per ton in January to November last year against $2045.6 in the corresponding periods in 2022 and $1675.7 in 2021.   Exports of polypropylene from Russia to China also increased last year, amounting to 137,070 tons in the first eleven months against 70,054 tons in the same period in 2022.  Average prices of Russian homo grade PP fell from $1158.4 per ton to $813.8 per ton.

Russian PTA imports Jan-Nov 23

Russian paraxylene production fell from 226,504 tons in January to November 2022 to 208,655 tons in the same period in 2023.   Ufaneftekhim reduced production from 112,269 tons to 110,899 tons whilst Gazpromneft reduced production from 68,918 tons to 58,325 tons.

Ufaneftekhim’s paraxylene capacity was increased to 260,000 tpa in 2022 but is operating at under 50% utilisation rate.  This is due to sanctions on paraxylene exports which have affected the Omsk refinery.   Ufaneftekhim has allowed Gazprom Neft the option of supplying paraxylene to Polief in order to operate the xylene isomer unit.

Russian PTA imports and import duties

The existing duty on PTA imports into Russia, in addition to Belarus and Kazakhstan, expires in March 2024 and is likely to be extended for another two years.  The Council of the Eurasian Economic Commission (EEC) approved the introduction of a zero rate of customs duty on the import of PTA and its salts into the territory of the EAEU.  The measure is introduced to fill the deficit in raw materials in the domestic market of the Eurasian Economic Union and meet the needs of enterprises engaged in the production of PET.

Russian PTA imports from China increased in the first eleven months to 213,900 tons versus 200,800 tons in the same period in 2022 and 270,700 tons imported in January to November 2021. 

This year values of imports amounted to $167.3 million in the first eleven months against $170.8 million in 2022 and $149.2 million in 2021.  Nearly all of the PTA imports from China were shipped to Ekopet at Kaliningrad by rail.  PTA import prices averaged $779.6 in the first eleven months this year, down from $883.1 in 2022 and up from $596.7 in 2021.

The main Chinese suppliers of PTA come from the Liaoning province in the north east of the country.  Suppliers include state-run PetroChina and privately held Hengli Petrochemical, accounting for 77.5% of deliveries to Russia in the first eleven months in 2023. 

Russian PET trade Jan-Nov 23

In the first eleven months Russian import costs of PET from China amounted to $197.659 million against $237.128 million in January to November 2022 and $135.609 million in 2021.  By volume imports dropped from 234,021 tons to 215,352 tons in January to November 2023. 

Average prices dropped last year in line with lower feedstocks costs, amounting to $919.3 per ton against $1114.9 per ton in the first eleven months in 2022.  However, they were higher than the comparative period in 2021 when numbers amounted to $907.2 per ton.

Russian synthetic rubber production Jan-Nov  2023

Synthetic rubber production in Russia amounted to 1.277 million tons in January to November 2023 against 1.404 million tons in the same period in 2022 and 1.548 million tons in 2021. 

In terms of regional production Tatarstan and Bashkortostan accounted for 72% of total synthetic rubber production in the period January to November 2023.  Around 20% of production took place at Voronezhsintezkaucuk and 7% at Omsk Kaucuk. 

Tyre manufacturing in Russia remains suppressed by weak demand, but the market stabilised in the second half of 2023 to an extent.  Consumption of rubber, including synthetic and natural, amounted to 279,100 tons in January to November 2023 against 307,500 tons in 2022 and 311,500 tons in 2021.  In the tyre industry S8 Capital has closed a deal to buy Bridgestone's assets in Russia.  The Bridgestone plant in Ulyanovsk with a capacity of 2.4 million tyres per annum was launched in 2016.  Bridgestone suspended production inside Russia from March 2022, and also froze investments.  Russia accounted for less than 2% of Bridgestone's global turnover.

The acquisition of Bridgestone's assets in Russia is the third acquisition of S8 Capital's tire division. In May, the company closed a deal to acquire Continental's Russian business, including a plant in Kaluga (4 million tyres per year with prospects for expansion to 16 million units). As part of this deal, S8 retained the Gislaved brand. In the same month, the company announced the acquisition of Russian manufacturer Cordiant, with three facilities in Omsk and Yaroslavl. The annual capacity of the Cordiant plants amounts to 9.7 million tyres.

Russian Chinese rubber trade Jan-Nov 2023

By volume Russian shipments of synthetic rubber to China amounted to 462,716 tons in the first eleven months versus 323,488 tons in 2022.  By value, Russian exports to China totalled $570.065 million in the period January to November 2022 and rose to $635.574 million in January to November 2023. 

By volume butyl rubber exports from Russia to China increased from 80,343 tons in January to November 2022 to 84,998 tons in the same period in 2023.  Butadiene rubber exports increased from 59,276 tons to 101,977 tons whilst SBS grade SBRs increased from 26,981 tons to 74,181 tons.  Only halogenated butyl rubber exports recorded a significant fall, dropping from 76,586 tons to 53,802 tons.  Nitrile-butadiene rubber shipments increased from 13,297 tons to 29,545 tons.

By value butyl rubber exports from Russia to China dropped slightly from $135.253 million in January to November 2022 to $129.522 million in the same period this year.  Butadiene rubber exports increased from $90.489 million to $129.976 million whilst SBS grade SBRs increased from $37.094 million to $88.342 million.  Halogenated butyl rubber exports recorded a significant fall, dropping from $187.693 million to $108.330 million.  Nitrile-butadiene rubber shipments increased from $13.297 million to $34.161 million.

SIBUR to construct catalyst plant at Voronezh

To meet SIBUR's own needs which have been accentuated through the exit of international companies from the Russian market, the company has decided to build its own catalyst plant at the holding's Voronezh site.  The design production capacity amounts to 350 tons per annum for pure N-butyllithium.   SIBUR plans to build three production lines for synthesis and filtration. 

Voronezhsintezkaucuk’s capacity comprises 226,000 tpa of synthetic rubber and 135,000 tpa of SBS polymers.  The company's products are in demand in many areas of industrial production: rubbers are widely used in the production of rubber for car tyres and rubber products; SBS polymers are used to improve the quality of road surfaces and roofing materials.  In 2021 Voronezhsintezkaucuk produced 221,000 tons of synthetic rubber and 125,000 tons of SBS polymers.

Nizhnekamskneftekhim-expansion of halogenated butyl rubber

Nizhnekamskneftekhim has completed the modernisation of the halogenated butyl rubber plant, increasing capacity from 150,000 tpa to 200,000 tpa.  This makes Nizhnekamskneftekhim the world's largest producer of halobutyl rubber by capacity, although the company can only sell into the European market until 24 June this year.   HBRs are used as a sealing layer in the manufacture of tubeless automobile tyres.  Due to this component, they become not only more environmentally friendly, but also economical, allowing to reduce fuel consumption. 

The updated production facilities will meet 100% of the needs of the Russian market with domestic HBR, as well as increase the volume of Russian exports to countries such as China, Thailand, Vietnam, and India. 

The start of production of halogenated butyl rubber at Nizhnekamskneftekhim first took place in March 2004.  The initial capacity of HBR production at Nizhnekamskneftekhim was 40,000 tpa.  In 2012, production increased to 100,000 tpa and then later increased to 150,000 tpa.   The company’s production of butyl rubber will remain unchanged after the HBR expansion, or possibly be reduced to accommodate higher production of rubber derivatives.  The increase in the production of HBR involves the additional construction of six new units which have already passed the necessary examinations.

Russian methanol production Jan-Nov 2023

Russia produced 3.469 million tons of methanol in the first eleven months in 2023 against 4.045 million tons in the same period in 2022.  Most producers reported lower production volumes with Azot at Novomoskovsk recording a drop from 191,670 tons in January to November 2022 to 9,320 tons in the same period in 2023.  Azot at Nevinnomyssk increased production slightly from 104,888 tons to 105,272 tons whilst Ammoni in Tatarstan reduced production from 85,042 tons to 55,843 tons. 

Gazprom Methanol reduced production from 646,330 tons in the period January to November 2022 to 583,990 tons whilst Metafrax reported a fall from 1.075 million tons to 1.034 million tons.  Russia’s largest producer Shchekinoazot reduced production from 1.388 million tons to 1.148 million tons.  Tomet at Togliatti produced 411,832 tons of methanol in January to November 2023 versus 437,741 tons in 2022. 

Russian methanol exports Jan-Nov 2023