PKN Orlen investment outline for 2023

The Orlen Group has set a target of allocating zl 36 billion (€6.786 billion) for investments in 2023 compared to zl 15.2 billion (€3.247 billion) in the whole of 2022.  Higher investment capability and requirements have been facilitated from the acquisitions of Lotos and PGNiG made in 2023.  More detail of Orlen’s planned projects and strategy should be known sometime in the first quarter.  The Orlen Group plans to present a programme to achieve synergies resulting from the acquisition of Lotos and PGNiG in the coming years.   One of the main projects could also include the construction of a petrochemical complex at Gdansk in cooperation with the Saudi Aramco group. For now, however, the project is at the stage of talks between the partners.  In January 2023 the EU approved the acquisition of some of the refinery assets sold by Lotos to Saudi Aramco and also MOL.   

PKN Orlen-operational activity

Regarding operational activity the group faces a significant increase in costs in line with the rise in profits.  Despite a fall in the refining margin in December to $14.6 per barrel from $19.9 in November and $31.4 in October the fourth quarter average margin of $22 is almost five times higher than in the same period in 2021.  Petrochemical margins ended the year at €1138 per ton having peaked at €1469 earlier in 2022.   Fourth quarter profits are expected to be positive, particularly as crude prices were lower than in the previous two quarters.

Polish petrochemical production Jan-Nov 2022

Ethylene production in Poland increased in the first eleven months to 426,300 tons from 307,500 tons in the same period in 2021, whilst propylene production rose from 307,800 tons to 384,900 tons.  Butadiene production at Plock rose from 38,200 tons to 58,300 tons.  In the plastics sector polyethylene production rose from 209,700 tons to 298,700 tons in January to November 2022 and polypropylene increased from 268,400 tons in the same period in 2021. 

Lukoil looking to offload assets in Romania

Due to the difficulties of Russian companies operating refineries in Europe Lukoil is considering the sale of its assets in Romania, including the Petrotel refinery at Ploiesti, which is located around 60 km north of Bucharest.  The Kazakh group KazMunayGaz, which operates Romania’s largest refinery Petromidia, is among the prospective bidders for Lukoil’s assets.  A similar scenario applies to the Bourgas refinery in Bulgaria which is owned by Lukoil.

EU price cap on Russian crude & further restrictions

In December 2022, EU countries agreed to set an price cap on Russian oil at $60 per barrel. The price cap applies to seaborne crude oil, petroleum oils and oils obtained from bituminous minerals which originate in or are exported from Russia.  The cap comes on top of the EU import ban on Russian seaborne crude oil and petroleum products, and the corresponding bans of other G7 partners.

The EU has prohibited EU vessels from transporting Russian crude oil (from 5 December 2022) and petroleum products (from 5 February 2023) to third countries. It has also prohibited the related provision of technical assistance, brokering services or financing or financial assistance. This ban doesn't apply if the crude oil or petroleum products are purchased at or below the oil price cap.

Slovnaft aims to cut the share of Russian oil in its processing activities in 2024 to about 60% from about 95% at present and use other blends to comply with sanctions on Russia.  Slovnaft processes around 124,000 barrels per day and has been using Russian oil supplied by the Druzhba pipeline but is accelerating modifications to use other blends. 

Polish crude supplies

PKN Orlen’s contract with Rosneft for oil supplies to Plock is expiring in January 2023 and has not been renewed for around about 3 million tpa.  A smaller contract with Tatneft, valid until 2024, will remain in force and can only be invalidated if sanctions are applied to pipeline supplies.  Around 70% of Orlen’s crude supplies were estimated to come from non-Russian sources in the fourth quarter, and this figure is expected to rise significantly in 2023. 

Regarding the Lotos refinery already 100% of oil supplies are being delivered from non-Russian sources.   The construction of a maritime transhipment terminal at the Gdansk will not only increase the capability to diversify imports of crude to the refinery but also help imports of non-Russian raw material to the Schwedt Refinery in eastern Germany.

Schwedt refinery east Germany

 The Schwedt refinery in eastern Germany may have resolved the dependency problem on Russian oil after Poland committed to provide enough supply for the refinery to run at least at a capacity of 70% from January onwards.  Both sides want to ensure Polish refineries in Gdansk and Plock as well as German refineries in Schwedt and Leuna are adequately supplied with crude oil.  Germany in September took control of the Schwedt refinery, which was majority owned by Russia's Rosneft, as part of efforts to shore up the country's energy supply.  Orlen is also ready to increase supplies from other directions primarily from Saudi Arabia.

Besides deliveries from the Baltic coast Kazakhstan’s KazTransOil has been given permission from Russia to send 1.2 million tons of crude to Germany in 2023 using the Druzhba pipeline, including 300,000 tons in the first quarter.   The Polish supply proposal assumes that two to three ships with 100,000 tons each a month of non-Russian oil would be unloading for Schwedt at Gdansk.  That would amount to some 3.5 million tpa, and the rest could come via Rostock on the Baltic.  Schwedt then could meet the needs of the Berlin region, supplying the nearly 600 German gas stations owned by PKN Orlen and provide some fuels for the western Poland region. 

Orlen Unipetrol-TAL pipeline

Whilst the Litvinov refinery is still processing Russian oil, changes are expected in the near future.  The Czech government has concluded an agreement to increase the capacity of the TAL oil pipeline, giving the Czech Republic a real opportunity to cut off Russian supplies in the next two years.   The TAL oil pipeline is 753 km long and runs from the port of Trieste in Italy through the Alps to Austria and Germany.  The Czech Republic is at the end of this route.

The aim of the TAL+ project is to increase the capacity of the TAL gas pipeline by the end of 2024 at the latest.  Orlen Unipetrol is ready to undertake the necessary cooperation in the field of developing a solution allowing the Czech Republic to move away from purchases of Russian oil.   

The pipeline capacity will be increased to 7-8 million tpa which would make the Czech Republic completely independent of supplies via the Druzhba by 2025.   Of the 6.8 million tons of crude oil imported into the Czech Republic in 2022 more than half of all imports (exactly 51.2%) were delivered via the Ingolstadt-Kralupy-Litvinov (IKL), which is part of the Transalpine oil pipeline.  This is mainly oil transported by tankers to the port of Trieste from Azerbaijan, Kazakhstan and the USA.

This pipeline supplies crude oil that does not come from Russia to the Orlen Group's Kralupy and Litvinov refineries in the Czech Republic.  The Kralupy refinery processes only crude oil from outside Russia, while the Litvinov refinery currently uses some of the non-Russian crude oil for processing.  The ban on importing Russian oil by sea to the EU came into force on 5 December.  From 5 February 2023, a similar embargo will apply to petroleum products and fuels from Russia. 

NIS-Business Plan 2023

 In addition to Lukoil in Romania and Bulgaria, Gazprom Neft and the Serbia government both find itself in a difficult ownership position in Serbia through the refining group NIS.   Serbia may eventually need to renationalise NIS in order to maintain relations with the EU and to ensure feedstock continuity.  At present NIS is focused on the preparation of the third phase of modernisation of the Pancevo refinery which includes the reconstruction of the catalytic cracking plant (FCC) and the construction of a new ETBE plant. 

In the petrochemical industry the priority remains on the further synergy with HIP Petrohemija, the implementation of projects to strengthen energy efficiency, as well as on further digitalization of the company at all levels.  

Hungarian propylene exports Jan-Oct 2022

Exports of propylene from Hungary dropped in the first ten months from 86,387 tons in January to October 2022 to 66,148 tons in the same period last year.  Exports to Slovakia from MOL to Slovnaft dropped from 77,628 tons to 57,947 tons which was due to lower production at Tiszaujvaros.

MOL propylene expansion

Although MOL currently produces more propylene than it consumes it is currently building a new propylene plant with a capacity of 100,000 tpa. This is part of the programme to create sufficient propylene feedstock for the new polyol project at Tiszaujvaros.  The propylene plant is being constructed by the engineering company Merkbau on an area of about three hectares at the site of MOL Petrochemicals at Tiszaújváros.  The new plant will fit into the existing production infrastructure, providing raw materials for the polyol plant, thus expanding the company's chemical production capacity.

Polish propylene & butadiene imports, Jan-Nov 22

Poland imported 120,138 tons of propylene in the first eleven months in 2022 against 220,795 tons in the same period in 2021.   Imports fell last year due mainly to higher production at Plock.  At the same time the market sources of imports changed significantly in 2022 due to effects of the Russian attacks on Ukraine. 

Karpatneftekhim at Kalush in western Ukraine suspended petrochemical production on 25 February following the Russian invasion.  Thus propylene imports from Ukraine dropped from 67,828 tons in the first eleven months in 2021 to 17,018 tons in 2022, which were delivered in January and February.  Russia also reduced shipments to Poland in 2022 to 21,625 tons with no volumes sent after June.  This compared against 46,680 tons in January to November 2021.  Due to availability imports from Germany fell to 56,275 tons in the first eleven months in 2022 versus 98,135 tons in the same period in 2021.  Supplies from Bulgaria, Croatia and Hungary all were present in 2022.    

Average prices for propylene imports into Poland rose from €892 per ton in January to November 2021 to €1265 in the same period in 2022.  Prices started falling in the latter part of the third quarter and into the fourth quarter following feedstock trends.   

Butadiene imports into Poland totalled 85,687 tons in the first eleven months in 2022 against 119,264 tons in the same period in 2021. The three largest suppliers comprised Hungary, Germany and Austria.   The lower volumes last year were due mainly to increased production at Plock, rising to 58,300 tons from 38,200 tons in January to November 2021.  Butadiene import prices averaged €1199 in the first eleven months in 2022 against €925 per ton in the same period in 2021.  The market picture came under pressure in the fourth quarter due to a mixture of weak demand and lower crude prices.  

Hungary supplied 32,398 tons in the first eleven months to Poland versus 42,075 tons in the same period in 2021.  Hungary also supplied Germany and the Czech Republic with butadiene monomer from its plant at Tiszaujvaros. 

Central European styrene trade Jan-Nov 2022

Prices for styrene imports into Central Europe for imports rose significantly in 2022, increasing by 48% for the Czech Republic in the first eleven months, followed by Poland with a 40% rise and Hungary 30%.   Although prices started to soften towards the end of 2022 the higher costs have been hard to push through to finished products. 

Poland imported 92,218 tons of styrene in January to November 2022 versus 97,736 tons in 2021.  The Netherlands is the largest supplier of styrene to the Polish market, having shipped 53,389 tons in the first eleven months in 2022 versus 77,576 tons in the same period in 2021.  Germany increased supplies to Poland from 7,673 tons in January to November 2021 to 18,817 tons in 2022.  

Due to increased production at Kralupy this year imports of styrene from the Czech Republic into Poland increased from 1,442 tons to 8,870 tons.  Increased production meant that Czech imports dropped from 57,679 tons in January to November 2021 to 13,848 tons.

Italy is the dominant source of styrene imports into Hungary, supplied by Versalis to its polystyrene plant at Szazhalombatta.  Imports of styrene into Hungary totalled 77,748 tons in January to November 2022, down from 84,950 tons in 2021, with supplies from Italy declining from 95% to 92%.

Czech petrochemical trade, Jan-Nov 2022

Ethylene exports from the Czech Republic dropped from 21,342 tons in the first eleven months in 2021 to 12,114 tons in the same period in 2022.  This included deliveries of 2,236 tons of ethylene sent to India, 3,827 tons to Germany and 3,266 tons to Slovakia. 

Czech imports of ethylene rose from 3,193 tons in the first eleven months last year against 16,037 tons in January to November 2022.  Germany supplied 15,902 tons to the Czech Republic this year for €18.784 million, averaging €1.181 per ton. 

 Propylene imports into the Czech Republic dropped from 41,280 tons in the first eleven months in 2021 to 32,846 tons in the same period in 2022, with main suppliers including Germany, Romania and Poland.  Czech imports of butadiene dropped from 69,949 tons in January-November 2021 to 59,611 tons in the same period in 2022.  Germany was the largest supplier, shipping 50,001 tons in January to November. 

Czech exports of ethylbenzene amounted to 102,915 tons in the first eleven months against 118,700 tons in the same period in 2021.  All the ethylbenzene was shipped from Kralupy to Oswiecim, all within the structures of the Synthos Group.  Benzene exports from the Czech Republic rose in the first eleven months this year to 30,256 tons against 44,460 tons in the same period in 2021.  Germany was the primary market for Czech benzene exports, accounting for 30,536 tons for €34.488 million. 

Imports of benzene into the Czech Republic dropped from 73,630 tons in 2021 to 65,706 tons in January to November 2022.  Benzene imports were sourced in the first eleven months this year from Poland (46,247 tons for €49.100 million), Serbia (10,475 tons for €10.657 million) and Hungary (7,960 tons for €8.124 million).

Polish polyethylene trade Jan-Nov 2022

Polish imports of polyethylene totalled 1.213 million tons in the first eleven months in 2022 against 1.286 million tons in the same period in 2021.  Average prices for polyethylene imports into Poland rose to €1986.8 per ton in 2022 against €1492.1 in 2021.  Imports of polyolefins and all types of plastics from Russia into Poland saw a progressive decline in 2022, dropping from 34,438 tons in January to 7,315 tons in November.  

Total costs of polyethylene imports into Poland amounted to €2.178 billion in January to November 2022 against €1.956 billion.  HDPE is the largest category of imported polyethylene into Poland, amounting to 423,059 tons in the first eleven months this year versus 443,9732 tons in January to November 2021. 

Polish polyethylene exports amounted to 320,382 tons in the first eleven months in 2022 versus 327,912 tons in the same period in 2021.  Average prices for polyethylene exports from Poland rose to €1643.3 per ton in the first eleven months in 2022 against €1030.7 in the same period in 2021.  Revenues from exports increased from to €526.505 million in 2022.

Price trends for polyethylene and plastics started to see declines in the fourth quarter in line with lower feedstock costs. 

Although crude numbers are not expected to return to mid-2022 peaks this year, demand and recessionary factors are slowing down volume purchases.

Completion of PKN Orlen’s stake in LDPE from BOP

Following approval by the competition authorities in Poland and the Netherlands, PKN Orlen completed the acquisition of LyondellBasell's jv stake in the LDPE activities of Basell Orlen Polyolefins (BOP, Plock). The plant at Plock is to be expanded under license from LyondellBasell.  The project expansion is based on forecasts that demand in the country as well as in Central Europe will grow significantly in the coming years.

PKN Orlen is currently undertaking assessment for the construction of a new LDPE plant at Plock.   Lupotech T technology provided by LyondellBasell accounts for more than 14 million tpa of LDPE/EVA polymer globally based on more than 70 production lines. 

The capacity of the new unit is expected to be 250,000 tpa against the existing unit of 100,000 tpa. Orlen’s LDPE market share increased this year through the acquisition of the assets from Basell Orlen Polyolefins (BOP). 

Poland is the largest consumer of this product in Central Europe.  Currently, the domestic demand for this product is about 300,000 tpa, while for Central Europe it is nearly 800,000 tpa in total.  Regional production capacity of 520,000 tpa indicates the deficit for LDPE and scope for expansion for PKN Orlen if it proceeds with its project for another 250,000 tpa.  According to forecasts, in 2025 the LDPE market in Central Europe will grow to approximately 890,000 tons, including around 312,000 tons for Poland.

After the conclusion of the BOP purchase PKN Orlen will become the sole producer of LDPE in Poland, covering about a third of the domestic demand.  Overall, the market is dominated by imports which amounted to 152,483 tons in the first nine months in 2022 against 146,754 tons in the same period in 2021.

Polish polpropylene trade Jan-Nov 2022

Polish polypropylene imports, including homo grade and copolymers, fell in the first eleven months in 2022 to a total of 997,241 tons versus 854,637 tons in the same period in 2021.  Average prices per ton increased from €1563.8 per ton to €1815.7 per ton, although the gap between the upper and lower range narrowed in the fourth quarter.  Homo grade polypropylene imports dropped from 668,655 tons in January to 2021 to 558,473 tons in the same period in 2022 whilst copolymer imports dropped from 301,811 tons to 273,961 tons.  Regarding export activity, shipments increased to 267,781 tons for against 258,737 tons in January to November 2021.

In addition to the dependency on propylene monomer imports, Poland has in recent years been increasing its imports of polypropylene and propylene copolymers.  Imports of polypropylene from Russia were one of the main sources in 2021, amounting to 155,805 tons from a total of 727,232 tons.  In value terms this amounted to €198.656 million from a total value of €1100.731 million.  Last year the position has changed due to the economic impact resulting from Russia’s invasion of Ukraine.

Czech polyethylene trade Jan-Nov 2022

Czech HDPE exports increased in the first eleven months to 332,258 tons against 302,246 tons in the same period in 2021, with revenues amounting to €519.439 million up from €418.946 million.  Although polypropylene exports dropped by volume from 303,273 tons to 259,503 tons, values rose from €444.537 million in January to November 2021 to €459.298 million last year. 

For imports of all forms of polyethylene, Czech inward shipments dropped from 319,696 tons in the period January to November 2021 to 267,406 tons in 2022. 

Over the first eleven months last year Slovak exports of polyethylene to the Czech Republic totalled 23,951 tons against 29,926 tons in the same period in 2021. 

Exports of polyethylene totalled 380,046 tons in the first eleven months up from 355,686 tons.  Germany was the largest destination in the period January to November 2022 with shipments of 152,492 tons.

For imports of all forms of polypropylene, Czech inward shipments dropped from 585,946 tons in the period January to November 2021 to 469,536 tons in 2022. 

Prices for polypropylene imports amounted to €1736.8 per ton in 2022 against €1370.8 in 2021.   Exports of polypropylene totalled 259,503 tons in the first eleven months against 303,273 tons.  Prices for polypropylene exports amounted to €1758.4 per ton in 2022 against €1465.8 in 2021.

HIP-Petrohemija-PE exports and feedstocks

HIP Petrohemija exported 106,100 tons of polyethylene in the first ten months in 2022 against 99,700 tons last year, whilst sales revenues rose from increased from $160.2 million to $171.2 million.   Average prices per ton rose from $1608 to $1729 in 2022.  Petrohemija’s main concern at present is feedstock stability due to the Russian ownership of its holding company NIS.

Hungarian polymer trade Jan-Oct 2022

Polypropylene imports into Hungary totalled 183,588 tons in the first ten months in 2022 against 179,559 tons in the same period in 2021.  This included 107,018 tons of homo grade polypropylene in January to October 2022 and 49,669 tons of copolymers.  Import costs for polypropylene shipments into Hungary increased from €283.316 million in the first ten months in 2021 to €332.750 million in the same period in 2022.  For propylene copolymers in Hungary Austria, Germany and the Netherlands were the largest sources of imports.

Regarding exports MOL shipped 105,149 tons of homo grade polypropylene in the period January to October 2022 from 94,105 tons in the same period in 2021, whilst copolymer exports dropped from 99,667 tons to 82,075 tons.   Export revenues increased from €321.704 million to €340.326 million.  Copolymer exports are distributed mostly to European destinations, of which the largest include Italy, Germany and Romania.

 Polyethylene imports into Hungary amounted to 187,060 tons in the first ten months in 2022 against 183,749 tons in the same period in 2021.  HDPE imports rose from 85,918 tons to 86,289 tons in January to October 2022, whilst LLDPE imports increased from 16,296 tons to 19,501 tons.

Regarding export activity due to lower production by MOL at Tiszaujvaros, HDPE shipments from Hungary dropped from 244,294 tons in January to October 2021 to 194,100 tons in 2022 whilst exports of LDPE dropped from 91,612 tons to 73,891 tons.   Despite the fall in export volumes revenues from polyethylene shipments rose from €282.657 million to €351.487 million.  From HDPE exports, shipments to Italy totalled 49,752 tons in January to October 2022 for revenues of €78.768 million followed by Germany where exports totalled 32,832 tons for €56.515 million.

Central European PVC trade Jan-Nov 2022

Spolana exported 78,823 tons of PVC in the first eleven months this year against 95,310 tons in the same period in 2021.  Revenues from PVC exports increased from €107.401 million to €156.638 million, after average prices rose from €1329 per ton to €1717 per ton. 

Italy was the largest destination for Spolana’s exports this year, after shipments to Poland reduced from 23,132 tons in January to November 2021 to 31,347 tons.  In order to support PVC production at Neratovice the Czech Republic imported 59,900 tons of ethylene dichloride from Germany in the first eleven months in 2022 versus 38,209 tons in the same period in 2021. 

Despite an increase in production at Wloclawek, PVC consumption declined in Poland in 2022 with imports dropping from 367,311 tons in the first eleven months against 257,974 tons in the same period in 2021.

Synthetic rubber prices Jan-Nov 2022

Rubber prices in Europe started dipping in October-November last year and the outlook for at least the first half of 2023 is fairly depressed.  European markets for synthetic rubber were in retreat amid weakness in demand as 2022 drew to a close. 

December showed declines in pricing across all key synthetic rubber products. Styrene butadiene rubber and fluoroelastomers registered decreases of more than 3% compared to November.

Traditionally, demand drops towards the end of the year; however, given the upheaval in the global economy this year, the demand-drop was more prominent.  This has resulted in a sharp dip in feedstock demand, including butadiene, as well as butadiene-based synthetic rubbers such as SBR, PBR and NBR.

Central European synthetic rubber export and import prices had previously shown strong rises over the course of the first nine months.  Export prices for Czech shipments increased from €1824 per ton in January to €2516 per ton in September whilst import prices rose more modestly from €2182 to €2288. 

Czech exports of synthetic rubber amounted to 178,756 tons in the first eleven months in 2022 versus 158.589 tons in the same period in 2021.  Imports declined slightly from 149,763 tons to 147,398 tons in January-November 2022.  Natural rubber imports dropped from 88,500 tons in the first eleven months in 2021 to 81,523 tons.    

Synthos-production Jan-Nov 2022

Synthetic rubber production at Oswiecim for Synthos dropped slightly in the first eleven months in 2022 to 243,900 tons from 252,200 tons in the same period in 2021.  Synthos reduced production of general polystyrene at Oswiecim in the first eleven months last year to 64,700 tons from 65,200 tons in 2021, whilst expandible polystyrene fell from 99,600 to 94,300 tons. 

Achieving profit targets for Synthos from production last year became highly challenging particularly in the second and third quarters.  Due to higher costs for energy and raw materials Synthos was forced to reduce ESBR production at its three sites at Oswiecim, Kralupy nad Vltavou, and Schkopau. 

Polish rubber trade Jan-Nov 2022

In the first eleven months in 2022 Poland exported a total of 272,280 tons of synthetic rubber for a total cost of €662.430 million.  This measured against 333,200 tons in the same period in 2021 for €686.709 million.  The largest category of synthetic rubber included the group of styrene-butadiene-styrene block co-polymers which amounted to 179,243 tons in January to November 2022. 

Due to EU sanctions imports of synthetic rubber from Russia into Poland slowed sharply in the second half of 2022.  Isoprene rubber has thus far been excluded from sanctions and this now comprises the main share of rubber export shipments from Russia to Poland.   Products such as butadiene rubber and halogenated butyl rubber have seen imports dropped to very small amounts after sanctions took effect from July.

Synthetic rubber exports from Poland also witnessed a steady decline in the second half of 2022 due mainly to lower production at Oswiecim.  Export volumes are expected to revive again in 2023 depending on demand. 

Butadiene rubber trade Jan-Nov 2022

Exports of butadiene rubber from Poland amounted to 41,885 tons in the first eleven months in 2022 for €82.078 million against 31,899 tons in the same period in 2022 for €48.506 million. 

Poland imported a total of 54,907 tons of butadiene rubber in the first eleven months in 2022, which was up from 41,172 tons in the same period in 2021. 

Imports from Russia increased in the first eleven months from 16,926 tons in January to November 2021 to 20,465 tons, most of which was supplied in the first half of 2022.  As a sanctioned product butadiene rubber imports from Russia saw a sharp fall in the third and fourth quarters.

Czech imports of butadiene rubber dropped to 27,530 tons in the first eleven months of 2022 from 31,442 tons in 2021, with Russia supplying 10,568 tons in 2022 down from 11,912 tons.  Costs for butadiene imports into the Czech Republic amounted to €68.913 million against €51.948 million. 

Czech exports of butadiene rubber increased from 95,633 tons in the first eleven months in 2021 to 96,913 tons in the same period in 2022.  Revenues from butadiene exports increased from €150.000 million to €214.113 million. 

The largest customer for Czech butadiene rubber is India which took 20,244 tons in the first eleven months in 2022 for €41.715 million.  The largest European consumer was Poland taking 13,580 tons for €28.643 million followed by Slovakia with 8,693 tons for €17.956 million.

Hungarian imports of butadiene rubber increased in the first ten months in 2022 to 36,975 tons against 32,379 tons of which Russia increased supplies in 2022 to 13,102 tons to 12,229 tons.  Imports of halogenated butyl rubber have been most affected by EU sanctions, dropping from Russia to 9,479 tons in the first eleven months in 2022 from 14,638 tons in the same period in 2021.   Belgium was the second largest supplier of halogenated butyl rubber from ExxonMobil, and volumes are expected to increase from this source over the next few months. 

Polish domestic rubber market

Rubber applications in Poland cover the automotive industry, construction (with particular emphasis on gaskets for joinery), agriculture, pharmacy and household appliances.  Synthos is the sole Polish synthetic rubber producer, supplying a range of raw materials to the domestic market including styrene-butadiene rubber, nitrile and butadiene rubber, as well as concentrated butadiene-styrene latexes, etc. 

Rubber supplies are provided by imports through either synthetic or natural.  The largest sector for rubber consumption in Poland is associated with the production of tyres, accounting for around of half of total Polish demand.  

Tyre production in Poland amounted to 516,600 tons in the first eleven months in 2022 against 523,400 tons in the same period in 2021. 

Besides tyres there are a wide range of rubber products including hoses, valves, etc manufactured in the Polish market which includes more than 900 companies of varying sizes.  The rubber industry does not only not use mainstream rubbers, but utilises a much wider range of raw materials including liquid silicone rubbers (LSR) or thermoplastic elastomers (TPE).  

Some of the main consumers include Stomil which specializes in the production of hydraulic hoses, industrial hoses and other rubber articles, tyre manufacturer Debica and Sanok Rubber Company. is a European leader in the production of rubber, rubber-metal products and combinations of rubber with other materials.

Polish benzene exports Jan-Nov 2022

Polish exports of benzene totalled 155,008 tons in the first eleven months in 2022 versus 126,118 tons in the same period in 2021.  Revenues from export shipments in 2022 amounted to €162.970 million. 

Whilst exports to the Czech Republic fell from 62,642 tons in January to November 2021 to 48,932 tons, there was a sharp rise in volumes to Germany rising from 58,340 tons to 96,232 tons.  Exports of benzene to the Czech Republic are sent mostly to Kralupy for conversion into ethylbenzene which is then exported back to Poland. 

Polish toluene trade Jan-Nov 2022

Poland is a net importer of toluene, with Slovakia providing the largest share of deliveries which amounted to 10,226 tons in the first eleven months in 2022 from total imports of 21,383 tons.  Poland exported 8,725 tons of toluene in the first eleven months in 2022 against 9,822 tons in 2021.  Germany was a destination for some shipments, but the main market was Hungary where toluene is bought largely for the production of TDI. 

Hungarian toluene imports Jan-Oct 2022

Hungary imported a total of 27,968 tons of toluene in the first ten months in 2022 for a total value of €29.887 million.  Imports dropped last year against the preceding 2021 when volumes amounted to 32,930 tons for €20.342 million.  Prices increased from €618 per ton in 2021 to €1079 per ton in 2022.  

Export sources last year were led by Germany accounting for 55% of inward shipments, followed by a number of regional suppliers including Poland, Slovakia and Serbia.

Polish phenol imports Jan-Nov 2022

Phenol imports into Poland amounted to 95,198 tons in January to November 2022 against 38,389 tons in 2021.  Consumption in 2021 was lower than normal due to extended downtime at some of Azoty’s installations. 

Russia had been one of the main suppliers of phenol to Poland in the first half of 2022 although volumes in May started to show signs of softening even before EU sanctions were introduced.  In the first nine months phenol imports into Poland from Russia totalled 14,133 tons for a total value of €20.616 million which measured against 9,746 tons for the whole of 2021 for €10.732 million. 

Regarding other imported aromatics into Poland most products recorded declines in 2022 including ethylbenzene, paraxylene, phthalic anhydride, TDI and PTA.  Declines were recorded for a variety of factors including higher domestic production, feedstock costs and demand.

Spolana caprolactam exports Jan-Nov 2022

Spolana exported 33,852 tons of caprolactam from the Czech Republic in the first eleven months last year against 34,769 tons in the same period in 2021. 

Revenues from caprolactam exports increased from €70.497 million to €87.372 million, after average prices rose from €2028 per ton to €2581 per ton.  Italy was the largest destination for Spolana’s exports in 2022, taking 14,135 tons against 14,854 tons in January to November 2021.

Polish PTA exports Jan-Nov 2022