Russia chems to remain stable over next 12–18 months – Moody's

21 December 2011 11:28  [Source: ICIS news]

Sibur facility at TobolskLONDON (ICIS)--Russia’s chemical sector will remain stable over the next 12–18 months as strong demand from Asia and Latin America offsets a slowdown in Europe, ratings agency Moody’s said on Wednesday.

"While we expect demand from Europe to slow due to ongoing economic uncertainty, demand in Asia – particularly China and India – and Latin America remains robust," said senior analyst Julia Pribytkova.

Russian chemical producers will also benefit from planned increases in polymer production, supported by strong growth in Russia's retail and construction sectors, the ratings agency said.

Demand for fertilizers will remain strong, with support from emerging and domestic markets outweighing slowing demand in Europe.

There are risks in this sector, however, from cheap North American feedstocks, increasing production of nitrogen-based fertilizers in the Middle East and a rise in Chinese domestic production, Moody’s said in its “special comment” report.

Pribytkova said ongoing investment will benefit Russia's chemical sector but warned that the outlook would be revised downwards if Chinese economic growth slowed to less than 5%. China's 2012 GDP is widely expected to be around 8–9%.


By: Graeme Paterson
+44 20 8652 3214



AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly

ICIS news FREE TRIAL
Get access to breaking chemical news as it happens.
ICIS Global Petrochemical Index (IPEX)
ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index