Russia 2016 PC capacity down by 13% year on year on declining economy

MOSCOW (MRC)–The capacity of the Russian polycarbonate (PC) market decreased 75,400 tonnes in 2016, down 13% from the previous year,  according to the MRC annual report “PC in Russia – 2017”.

Despite the overall decrease in consumption of PC in Russia in 2016, the production of PC granulate on the contrary increased by 5% from 67,300 tonnes to 70,900 tonnes.

The consumption of extrusion material decreased the least. The decrease last year amounted to 5%, from 65,700 tonnes to 62,100 tonnes.

Consumption of PC for blow moulding fell by 27%, from 1,600 tonnes to 1,200 tonnes.  Consumption in the sector of injection moulding material decreased the most – by 40% – from 19,700 tonnes to 11,900 tonnes.           

The decrease in demand for PC in 2016 was a result of the continued decline in the economy in the country and, consequently the reduction in consumption of finished products made from polycarbonate.

The level of consumption of extrusion polycarbonate was affected by the rate of development of construction in the country and investment in greenhouse business.

Last year the construction sector continued to be in a state of recession, and investments in greenhouse business slowed down and showed a slight decrease compared to 2015.

The main sectors of consumption from injection moulding are the production of auto components, electrical products, CDs, household appliances and lighting products.

According to Rosstat, the production of cars in Russia in 2016 fell by 7.4% compared to the indicator for 2015 and amounted to 1.1m units.

The capacity of the Russian CD market also continued to decline.

Production of PC bottles showed a decline for the third consecutive year after the maximum level that was reached in 2013.

MRC, a partner of ICIS, produces polymers news and pricing reports from Russia, Ukraine, Belarus, Uzbekistan and Kazakhstan.