Russian petrochemical production Jan-May 2025

Prospects of a recession in the Russian economy appear to be widening which is partially reflected in the production data for petrochemicals where numerous products are showing declines in output in the first five months this year.   Payment arrears in the economy are becoming a major problem, which is filtering through to the chemical industry.

Russian ethylene production amounted to 1.926 million tons in first five months against 2.013 million tons in January to May 2024, whilst propylene production dropped from 1.139 million tons to 1.065 million tons.  Methanol production amounted to 1.737 million tons in the first five months versus 1.621 million tons in 2024, after the rise in exports compensated for the drop in domestic consumption.  In the field of aromatics benzene production fell from 586,786 tons January to May last year to 563,072 tons in January to May 2025.   Ethylbenzene production dropped from 369,880 tons to 361,929 tons, whilst toluene fell from 160,470 tons to 126,141 tons.

Western sanctions have caused a wide range of complications and challenges for Russian petrochemical producers, but production has largely remained stable.   The chemical industry has been helped by the exit of Western companies from the domestic market and the replacement of Europe with China as its main trading partner.  

For the first 20 months of the war in Ukraine the mainstream Russian chemical industry had succeeded in keeping its distance from the military sector, but as the militarization of the Russian economy has intensified more chemical plants producing civilian economy products have become entangled with defence orders.  The plants listed in the table have all been targeted this year due to their alleged involvement in providing of products and raw materials for the Russian military.

Russian polymer production Jan-May 2025

Russian production of polyethylene increased in the first five months to 1.519 million tons against 1.466 million tons in January to May 2024.  Propylene polymer production decreased from 926,775 tons to 904,538 tons, whilst styrene polymer production declined from 255,227 tons to 244,602 tons.   PVC production dropped from 423,476 tons in the first five months last year to 395,317 tons in January to May 2025.  The production of polyamide in Russia showed a drop to 53,217 tons from 60,063 tons.  Russian production of synthetic rubbers increased to 642,667 tons in January to May this year from 625,847 tons in January to May 2024.   Russian production of finished products from polymers and synthetic rubbers in May 2025 decreased by almost 10% compared to the same period last year, and 5.4% for the full five months.  Tyre production recorded a 10% fall in the first five months, whilst polymer pipe production dropped 12.5% in the first five months.  Overall lower production volumes in plastics and rubber products has been taking place since February this year.

Russian ethylene production Jan-May 2025

Russian ethylene production totalled 1.926 million tons in the first five months in 2025 against 2.013 million tons in the same period in 2024.  All regions saw lower production.  ZapSibNeftekhim at Tobolsk reduced production from 679,436 tons in January to May last year to 626,737 tons in January to May 2025.  Production in the Volga region amounted to 953,758 tons in January to May versus 959,948 tons in the same period in 2024.  The Volga region includes producers Nizhnekamskneftekhim, Kazanorgsintez, Gazprom neftekhim Salavat and Ufaorgsintez.  At the end of January SIBUR-Kstovo was forced to suspend production due a fire on the site caused by drones which were targeting the Lukoil refinery at Kstovo.  SIBUR-Kstovo restarted production of ethylene and propylene in March after repairs were completed.   

Russian propylene production Jan-May 2025

Russian propylene production totalled 1.066 million tons in January to May 2025 against 1.130 million tons in January to May 2024.  ZapSibNeftekhim at Tobolsk produced 387,848 tons against 458,025 tons in the same period in 2024.  The Volga-Urals region increased production from a total of 405,519 tons in January to May 2024 to 397,561 tons in January to May 2025.    

Russian propylene domestic sales Jan-May 2025

Russian sales of propylene on the domestic merchant market amounted to 120,350 tons in January to May against 174,738 tons in the same period in 2024.  The largest propylene supplier to the domestic market was Lukoil-NNOS, shipping 84,581 tons against 62,385 tons in January to May 2024. 

SIBUR-Kstovo reduced propylene sales from 82,521 tons in January to May last year to 18,681 tons this year, after production was disrupted by Ukrainian drone strikes on the complex in January.  As a result of the attack SIBUR-Kstovo stopped production in February creating supply problems for the Russian market.    Most merchant consumers have reduced purchases in 2025.  ZapSibNeftekhim purchased 8.993 tons of propylene in January against 34,389 tons in January to May 2024, whilst Saratovorgsintez reduced purchases from 64,832 tons to 64,157 tons. 

Russian butadiene production Jan-May 2025

Russian butadiene production totalled 280,551 tons in January to May 2025 against 273,632 tons in January to May 2024.  ZapSibNeftekhim at Tobolsk produced 114,829 tons against 121,660 tons in the same period in 2024.  The Volga-Urals region increased production from a total of 138,346 tons in January to May 2024 to 149,955 tons in January to May 2025.   

Russian plastics production Jan-May 2025

Russian bulk plastics production amounted to 4.560 million tons in January to May 2025 against 4.607 million tons in January to May 2024 and then against 4.473 million tons in January to May 2023.    

Production of ethylene polymers amounted to 1.580 million tons in January to May, slightly up from the 1.519 million tons last year.  The largest plant for the production of ethylene polymers is ZapSibNeftekhim at Tobolsk, located in the Ural Federal District.  Production totalled 640,941 tons in January to May this year against 692,935 tons in the same period in 2024.  

The second largest region in Russia is the Volga Federal District where production increased from 448,906 tons last year to 554,515 tons in January to May 2025.  The Volga district includes producers from Bashkortostan including Gazprom neftekhim Salavat and Ufaorgsintez, and from Nizhnekamskneftekhim and Kazanorgsintez. 

Russian polyethylene trade Jan-May 2025

Russian polyethylene exports to China increased from 174,464 tons in January to May 2024 to 204,297 tons in the same period in 2025, with both HDPE and LDPE showing rises.   Average prices for Russian polyethylene exports to China dropped from $885.1 per ton to $845.3 per ton in 2025. 

Inward shipments of polyethylene from China into Russia dropped in the first five months to 33,385 tons against 44,934 tons in January to May 2024.  Average prices rose to $1536.0 per ton from $1434.8 in 2024.

The largest volume of Chinese shipments to Russia consisted of ethylene-hexene copolymers where shipments into Russia amounted to 9,441 tons against 10,060 tons in the same period in 2024.  LLDPE shipments amounted to 8,547 tons in the first five months, and EVA shipments amounted to 4,832 tons.  The production of ethylene-hexene polymers is currently not possible in Russia and the new plant at Nizhnekamsk will allow the production of ethylene-hexene polymers in 2026 if not this year. 

Inward shipments of polyethylene from South Korea into Russia dropped in the first five months to 23,391 tons against 57,364 tons in January to May 2024.  Average prices rose slightly to $1258.3 per ton from $1252.3 in 2024.

Russian polypropylene production Jan-May 2025

Russian production of propylene polymers totalled 907,602 tons in January to May 2025 against 950,621 tons in January to May last year.  ZapSibNeftekhim at Tobolsk reduced production from 498,162 tons to 440,172 tons in January to May 2025. 

The Moscow refinery increased polypropylene production to 39,805 tons from 38,487 tons.  The Volga region, including Nizhnekamskneftekhim and Ufaorgsintez, produced 184,910 tons against 170,434 tons.  The Siberian region, which includes Tomskneftekhim and Polyom at Omsk, reduced production to 146,945 tons from 147,365 tons.

Russian polypropylene trade Jan-May 2025

Revenues for Russian exports of polypropylene homo grade to China increased from $38,765 million in the first five months last year to $59.435 million in January to May 2025.  Volumes increased from 45,821 tons to 69,117 tons.  

Chinese exports of propylene polymers dropped in value from $28.797 million in the first five months last year to $15.764 million.  By volume, shipments rose slightly from 12,035 tons to 12,206 tons.  Prices amounted to $2160.4 per ton in 2025, down from $2392.8 in 2024. 

South Korean exports of propylene copolymers to Russia dropped in the first five months to 10,249 tons against 18,125 tons in the same period in 2024.

Russian PVC trade and production Jan-May 2025

Russian PVC suspension grade production totalled 341,817 tons in January to May 2025 against 355,049 tons in the same period in 2024.  The Volga region, which includes plants at Kstovo and Sterlitamak, accounted for 209,292 tons in January to May against 188,861 tons in the same period last year.   Sayanskkhimplast is the only PVC producer in Siberia, producing 97,440 tons in the first five months against 131,146 tons in January to May 2024.  The plant is supplied with ethylene from the Angarsk Polymer Plant by pipeline.

Emulsion grade PVC in Russia fell from 11,903 tons in the first five months last year to 9,663 tons in the same period in 2025.  Production has been affected this year by ethylene shortages from the neighbouring Kstovo cracker that was inactive for over a month following a drone attack at the end of January.

Imports of PVC from China into Russia increased to a total of 90,080 tons in the first five months in 2025 against 55,865 tons in the same period last year.  Shipments of PVC suspension grade increased from 28,987 tons to 50,079 tons whilst emulsion grade rose from 26,878 tons to 40,001 tons. 

Russian PX-PTA-PET production Jan-Mar 2025

Russian paraxylene production amounted to 100,763 tons in the first five months in 2025 against 106,197 tons in the same period last year.  Gazprom Neft at Omsk reduced production from 36,710 tons to 23,450 tons whilst Ufaneftekhim increased production from 48,298 tons to 58,492 tons.

PTA production at Polief amounted to 143,219 tons in the five months which against 147,619 tons in January to May 2024.   

Russian PET production rose from 265,676 tons in January to May 2024 to 280,366 tons in the first five months this year of which Polief produced 87,731 tons. 

Ekopet produced 104,831 tons of PET in January to May making it Russia’s largest producer, whilst the combined plants of Senezh and SIBUR-PETF produced 87,804 tons.

Russian PTA imports Jan-May 2025

Russian PTA imports from China amounted to 142,956 tons in the first five months in 2025 versus 110,588 tons in the same period in 2024.  Higher PTA imports were required to support higher PET production.  This year PTA deliveries have started to be received by ship to the port of Kaliningrad in addition to rail.  In order to prepare for safe mooring and efficient handling of large vessels, the port was required to undertake significant work to modernise berths, port infrastructure and storage facilities.  

The port is now ready to handle vessels with maximum dimensions for movement through the sea channel, including those with a length of more than 170 metres.  In close cooperation with Ekopet, the transshipment of PTA is expected to rise and will act as an alternative to rail deliveries. 

Chinese shipments of PET to Russia amounted to 122,302 tons in January to May this year against 103,671 tons in the first five months in 2024.  Costs of Chinese PET import shipments into Russia rose from $91.850 million to $97.648 million.  Average prices dropped from $886.0 per ton to $798.4 per ton. 

Chinese shipments of MEG to Russia amounted to 35,664 tons in January to May this year against 38,777 tons in the first five months in 2024.  Average prices rose slightly from $576.2 per ton to $578.3 per ton.

Restrictions to apply to Russian PET packaging from September 2025

From 1 September 2025, three types of plastic containers made of PET packaging will be banned in Russia.  PET bottles for the food industry (except for blue, white, green and brown bottles, as well as colourless), multilayer PET bottles and PET packaging with a PVC label (except for shrink bottles) will be outlawed.  Until now producers have been allowed to produce plastic bottles of only a few colours: transparent, blue, green and brown, as well as white for dairy products.  At this stage it is not clear how much impact these changes will have upon total PET consumption in Russia.

Russian synthetic rubber production and market Jan-May 2025

Synthetic rubber production in Russia amounted to 642,667 tons in January to May 2025 against 625,847 tons in January to May last year.   The increase in the first five months this year has been mainly due to the increase in export activity to China.

Synthetic rubber plants have become entangled in Russia’s war effort against Ukraine in supplying products for the military sector.  The rubber industry is receiving increased monitoring from the Kremlin.  Issues have been considered, which includes organising the production of rubber and special polymer materials for the military-industrial complex. 

Domestic demand in Russia has been affected by the drop in car sales this year.   There has seen a decrease in tire production in almost all segments, with the exception of agriculture.  The reduction in tyre production (3.4 million units) in May amounted to about 20% with a 10% fall recorded for the first five months.  Overall tyre manufacture consumed 151,600 tons of rubber in the first five months against 166,800 tons in the period January to May 2024.  Sales of passenger cars decreased by 26% in the first five months, dealers' warehouses remain overloaded, and the availability of loans is declining against the backdrop of a high key rate.  The domestic market of heavy trucks is forecast to fall to 45,000 vehicles in 2025 against 110,000 in 2024.   Unprecedented stocks of vehicles imported last year has meant there are about 40,000 Chinese-made heavy trucks in warehouses.  Any imports from Southeast Asia can automatically be considered as dumping.

SIBUR’s efforts to replace natural rubber with synthetic rubber

SIBUR is working with Russian tyre companies to replace natural rubber with synthetic rubber in car tyres.  Thus far SIBUR has been able to achieve a localisation level of synthetic rubber of 99%.  The new rubber will be introduced into the industrial production of tyres.  Tyre manufacture in Russia is based on around 25% of natural rubber which is imported from Asia, from Thailand, Indonesia and Vietnam. 

Synthetic rubber produced in Russia is almost all consumed by the tyre industry, while natural rubber is partially used in tyres.  SIBUR has already concluded an agreement with the major tyre manufacturer Kordiant to replace natural rubber with synthetic rubber.  The aim is to replace natural rubber with isoprene rubber, which is commonly assessed as being the closest analogue.  SIBUR aims to replace around 80% of natural rubber with isoprene rubber which it produces at Nizhnekamskneftekhim. 

Russian synthetic rubber production by category

Isoprene rubber production in Russia amounted to 117,623 tons in January to May 2025 against 109,487 tons in January to May 2024 whilst butadiene rubber production increased from 117,460 tons to 121,398 tons.  The highest value rubber produced by Russia is halogenated butyl rubber where production dropped from 47,121 tons in January to May last year to 41,656 tons this year of which most was exported to China. 

SIBUR and Tatneft have jointly achieved the creation of a new grade of styrene butadiene rubber DSSK-615, which improves wheel grip and rolling resistance, as well as reduces production costs.  This opens up opportunities for further scaling up the technology and introducing new rubber into industrial tyre production.

SIBUR’s n-butyllithium plant at Voronezh

SIBUR is currently progressing with construction of its catalyst plant for n-butyllithium production at Voronezh, which is used for the production of thermoplastic elastomers and synthetic rubbers.  The launch of production will mitigate the risks associated with the complexity of the supply chain and the availability.  The project is being undertaken at the Voronezhsintezkaucuk site using SIBUR's own technology and is currently around 50% of its schedule.  The production capacity is being designed to 350 tpa and will meet not only the holding's own needs but will also create a reserve for the development of other industries such as electronics, chemicals for agriculture, and medicine.   Commissioning is scheduled for the first quarter of 2026 and production to start in the second quarter.

Voronezhsintezkaucuk continues to assess plans to increase its capacity for the production of divinyl-styrene thermoplastic elastomers (TPE), or SBS, from its first line of 35,000 tpa to 80,000 tpa.  Progress has been slowed due to the plant being targeted on more than one occasion by Ukrainian drones due to its connections to the Russian military. 

Russian Chinese rubber trade Jan-May 2025

Russian export revenues from synthetic rubber shipments to China totalled $511.145 million in January to May 2025 against $394.603 million in the same period in 2024.  The largest category purchased by China was for isoprene rubber with costs rising to $102.350 million against $42.479 million in the same period in 2024, followed by butadiene rubber where costs amounted to $96.608 million against $80.886 million.   

By volume Russian shipments of synthetic rubber to China amounted to 326,032 tons in the first five months in 2025, which was up from 245,790 tons in the same period in 2024.  The increase in export volumes compensated for the drop in consumption in the domestic market. 

Butadiene rubber exports represented the largest category, rising from 56,501 tons in 2023 to 56,329 tons.  Exports of thermoplastic elastomers, which are produced by Voronezhsintezkaucuk, increased sharply from 28,706 tons to 55,627 tons.  Butyl rubber exports from Russia to China increased to 56,329 tons from 51,783 tons in 2024.  Butyl rubber is produced at Nizhnekamskneftekhim and Tatneft at Togliatti.  Nitrile-butadiene rubber (NBR) exports to China amounted to 13,193 tons in the first five months in 2025 against 14,548 tons in the same period in 2024.  NBR is produced at the Krasnoyarsk Synthetic Rubber Plant in East Siberia with around two thirds of output targeted on the Chinese market. 

Russian methanol production Jan-May 2025

Russia produced 1.737 million tons of methanol in January to May 2025 against 1.621 tons in January to May 2024.  Production in the Central region, which includes Shchekinoazot and Azot at Novomoskovsk, fell from 498,442 tons to 434,761 tons.  The Volga region increased production from 693,699 tons to 831,887 tons, whilst the Siberian Federal District (including Gazprom Methanol and Angarsk Petrochemical) increased production from 312,007 tons to 335,548 tons.   

Azot at Nevinnomyssk produced 42,287 tons of methanol in the first five months in 2025 against 44,737 tons in the same period this year.  It is not clear if the methanol unit was affected by the drone attack on 14 June.  Some facilities at the complex were forced to stop after a significant attack where the entire workforce were confined to bomb shelters.  Azot at Nevinnomyssk reportedly has supplied raw materials and components for Russia’s weapons and fuel production since 2024.  The complex includes capacities of 1.0 million tpa of ammonia and 1.4 million tpa of ammonium nitrate.  It also operates Russia’s only melamine production facility, in addition methyl acetate and acetic acid.   The chemical plant is part of the Evrokhim Group, owned by Russian billionaire Andrey Melnichenko, who is currently sanctioned by Canada, the EU, Japan, and the UK.

Russian methanol exports Jan-May 2025

Russian methanol exports amounted to 710,525 tons in January to May 2025 against 559,277 tons in the same period in 2024.  Shchekinoazot increased exports from 209,200 tons to 213,745 tons, whilst Metafrax Chemicals increased shipments from 99,000 tons to 203,947 tons.   Tomet exported 126,367 tons versus 74,255 tons in January to May 2024.  Gazprom Methanol increased exports to a total of 162,386 tons from 133,250 tons.   

Prior to the full invasion of Ukraine, the geography of methanol exports was extensive, supplying to almost 30 countries.  The list of countries was reduced in 2024 to less than ten, including Turkey, China, Belarus, Kazakhstan, the United Arab Emirates.  Other countries included Georgia, Kyrgyzstan and Azerbaijan.  Brazil has emerged in 2025 as a new consumer.

Turkey has seen shipments from Russia increased from 86,600 tons in the first five months in 2024 to 153,397 tons in 2025. Export sales to Brazil were undertaken for the first time this year and amounted to 105,289 tons in the first five months.   Exports to China amounted to 363,137 tons in January to May 2025 against 389,573 tons in January to May last year. 

Shipments to China continue to remain borderline profitable for Russian producers, due to lower prices in China, whilst facing expensive logistics and railway congestion in the eastern direction.  Prices in the first five months averaged $299.9 per ton against $283.4 in the same period last year.  Methanol prices in China rose sharply in June due to hostilities between Israel and Iran, and although the situation has settled it is far from over.  On 16 June futures for the next month jumped to a close of 2464 yuan ($343) per ton on the Zhengzhou Commodity Exchange, the highest result since April.   If the situation in the Middle East escalates due to the suspension of logistics, China could face a large supply shortage.

Despite being the closest large plant to China, Gazprom Methanol has reduced methanol exports from Tomsk to the port of Nakhodka to 46,289 tons in the first five months in 2025 against 133,122 tons in the same period in 2024.  At the same time Shchekinoazot increased shipments from 130,260 tons to 133,896 tons in 2025 and Metafrax Chemicals increased shipments from 79,024 tons to 146,770 tons. 

The rise of the Murmansk port for methanol exports

Russian methanol deliveries to Brazil have been facilitated this year through the expansion of shipping capabilities at the Murmansk sea port in the north of Russia.  Hardly any of the ships that today set out from the Murmansk port have European destinations, and instead they sail towards “friendly” countries of which Brazil is one.  Murmansk has one of Russia’s five biggest seaports. It normally handles more than 50 million tons of goods annually, most of it crude oil, coal, as well as fertilisers and processed nickel.

Methanol is a relatively new product for the Murmansk port but it is limited in size of capability throughput at this stage.  If it was purely about rail distances from plant to port most Russian producers would choose Murmansk over Nakhodka, even for shipments to China, and that m7ay be possible in 2026.  Gazprom Methanol’s plant is located around half way between the ports of Murmansk and Nakhodka and yet has used Murmansk more in 2025 by supplying Brazil with 105,289 tons. 

Russian methanol domestic sales, Jan-May 2025

Domestic merchant sales of methanol dropped to 384,574 tons in January to May 2025 against 400,916 tons in January to May 2024.  Metafrax Chemicals reduced domestic merchant sales to 192,192 tons in January to May 2025 against 212,872 tons in January to May last year, whilst Gazprom Methanol reduced domestic merchant sales to 132,751 tons which was down from 151,187 tons.  Management of the sales function at Gazprom Methanol was transferred at the beginning of 2025 to Gazprom's subsidiary, Gazprom Gazonefteprodukt Holding.  Shchekinoazot shipped 145,673 tons in January to May 2025 against 152,368 tons last year.   In order to minimize losses from the closure of the European market, domestic producers that can produce both methanol and ammonia have reduced methanol loading and increasing the production of ammonia and its derivatives.

Russian butanol production Jan-May 2025

Russian normal butanol production increased from 61,609 tons in January to May 2024 to 64,834 tons in the first five months this year.  The Volga region, which includes SIBUR-Khimprom and Gazprom neftekhim Salavat, increased production from 43,148 tons to 52,453 tons.  Angarsk Petrochemical Company reduced production from 12,715 tons in January to May 2024 to 7,633 tons in the same period in 2025. 

Russian acetone production Jan-May 2025

Russian acetone production rose slightly from 67,310 tons in January to May 2024 to 68,882 tons in January to May 2025.  Omsk Kaucuk produced 17,103 tons of acetone against 19,461 tons in the previous year whilst Kazanorgsintez increased production from 21,631 tons to 21,997 tons.  The other two producers Ufaorgsintez and Novokuibyshevsk Petrochemical Combine both came under drone attacks in March reflecting the continuing threats posed to Russian plants. 

Omsk Kaucuk is currently planning to build an acetone condensation unit in order to produce isophorone, a product which is not produced in Russia. Omsk Kaucuk is also updating the production of phenol and acetone plants which is not only to improve the technological process, but also to improve the environmental parameters of production.  After modernisation, in 2022 Omsk Kaucuk’ s capacity for the production of phenol was increased to 90,000 tpa and acetone to 56,000 tpa. Omsk Kaucuk holds a 30% share in the phenol market and 36% in the acetone market.

Russian acetic acid production Jan-May 2025

Russian acetic acid production amounted to 86,034 tons in January to May 2025 against 83,231 tons in the same period in 2024.  The largest producer in Russia, Azot at Nevinnomyssk, increased production from 63,904 tons to 64,456 tons.  Aside using acetic acid for the production of butyl acetate and methyl acetate Azot supplies merchant acetic to the Russian domestic market.  The two largest customers include Polief which purchases acetic acid for PTA and Stavrolen which uses acetic acid in the production of vinyl acetate monomer (VAM). 

Isopropanol production in Russia amounted to 21,995 tons in January to May 2025 against 22,964 tons in the same period last year.  Omsk Kaucuk reduced production from 11,263 tons to 8,570 tons whilst the Plant at Synthetic Alcohol at Orsk increased production from 11,701 tons to 13,425 tons.

Russian phthalic and maleic production Jan-May 2025

Phthalic anhydride production in Russia totalled 21,697 tons in the first five months in 2025 against 23,514 tons in the same period in 2024.  Kamteks-Khimprom at Perm is the largest producer followed by Gazprom neftekhim Salavat, and together these two plants produced 34,497 tons in the first two months in 2025.  Maleic anhydride production in Russia totalled 18,337 tons in the first five months in 2025, against 16,564 tons in the same period in 2024.  Consumption of maleic anhydride in the Russian market in 2024 in amounted to 11,200 tons against 11,000 tons in the previous year. 

Russian TDI imports Jan-May 2025

TDI imports into Russia from South Korea amounted to 3,236 tons in January to May 2025 against 3,162 tons in January to May 2024.  Prices of imports from South Korea amounted to $1846.8 per ton against $1990.9 per ton in 2024.

TDI imports from China into Russia amounted to 4,482 tons in January to May 2025 against 8,173 tons in the same period in 2024.  Due to much lower prices, costs of Chinese imports dropped from $16.926 million to $9.155 million in 2024. 

Russian MDI imports Jan-May 2025

MDI imports from China into Russia amounted to 36,340 tons in January to May 2025 against 37,928 tons in the same period in 2024.  Prices increased from $1994.7 per ton to $2011.4 per ton in 2025.  MDI is the main isocyanate imported into Russia is MDI, accounting for 75.4% of all imports in this segment in 2024.  Chinese imports account for nearly two third of Russian total consumption. 

Chinese exports of polyols to Russia Jan-May 2025

Polyol imports into Russia from China fell from 51,985 tons in January to May 2024 to 41,980 tons in the first five months in 2025.    Import costs dropped from $73.722 million in the first five months in 2024 to $56.250 million in the same period this year.  Average prices dropped from $1418.1 per ton to $1339.9 in 2025.

Kazakh polypropylene exports and domestic market

KPI produced 175,000 tons of polypropylene in the first five months of this year of which 50,838 tons were exported to China 36,511 tons in the same period in 2024.  This year KPI increased its polypropylene sales volumes in the domestic market, bringing its share to 70% against 40% last year. 

The Kazakh polypropylene processing market has rose by 28% in the first five months in 2025 compared to the same period last year, reaching a volume of 21,300 tons.  For the whole of 2024 the company's sales amounted to 22,900 tons (amounting to around 57% of the total market).  In the first half of 2025 domestic sales have outstripped targets set in January.  This dynamic was made possible by the growth of the customer base, where more than 60 out of 130 Kazakh companies purchase polypropylene on a monthly basis.  Shipments under these programs amounted to over 340 tons in May, and in June it is expected to reach 400 tons.

Chinese Exports of PET to Central Asia

PET exports from China to Kazakhstan amounted to 47,221 tons in the first five months in 2025 against 27,671 tons in the same period in 2024, whilst exports to Uzbekistan increased from 63,018 tons to 87,190 tons.  Domestic PET consumption in 2023 was estimated at about 85,000 tpa, of which about 95% were imports from China. Russia imported about 270,000 tpa of PET last year, more than 90% of them from China.  In effect the Kazakh project will have to compete with Chinese suppliers which may prove difficult. 

KazMunayGaz seeks partner for PTA-PET projects

KazMunayGaz (KMG) is looking for a strategic partner for the construction of a polyethylene terephthalate (PET) plant in the Atyrau region.  Currently Kazakhstan is completely dependent on its imports due to the lack of its own production.  Last year, KMG and Sinopec discussed joint work on the project, but it seems to have fallen through.  Not a single strategic partner will enter the project without resolving the issue of providing future production with paraxylene from the Atyrau Oil Refinery which could produce PTA.  The problem is that as soon as the situation with high-octane gasoline in the country worsens, the Atyrau Refinery stops producing aromatics and switches to fuel mode.

The Atyrau Refinery produced about 108,000 tons of paraxylene in 2024, but its production worked only until June.  From July until the end of the year, the aromatic complex was idle. Thus, until the issue of full saturation of the domestic market with high-octane gasoline is resolved, the provision of paraxylene for PTA production will remain in question.

The Kazakh government could possibly attract Tatneft which is developing a similar supply chain in Russia.  The possible sale of the Atyrau Oil Refinery to Tatneft has been ruled out by the Kazakh government.  At the same though Tatneft’s involvement could be a key factor in the development of the proposed PTA-PTA project. 

Tatneft-delayed butadiene and rubber projects Kazakhstan

The launch of production of the butadiene and synthetic rubber plants in the Atyrau region was originally scheduled for 2026.  The project is being constructed on the territory of the FEZ "National Industrial Petrochemical Technopark" near Atyrau and it is already clear that the deadlines will be disrupted due to various factors.  One of those includes negotiations which are still underway with the Chinese engineering company China Tianchen Engineering Corp which is acting as the contractor for the project.  The plant is being designed to utilise 380,000 tpa of butane fraction which will be supplied from Tengiz

The butadiene project in Kazakhstan is being implemented by a jv between KMG (25%) and Tatneft (75%).  In March 2024, Lummus Technology entered into licensing agreements with Butadiene LLP for the technology of dehydrogenation of n-butane, dehydrogenation of isobutane, production of methyl tert-butyl ether (MTBE) and extraction of butadiene.

The rubber components of the project include 60,000 tpa of divinyl styrene synthetic rubber for use in the rubber industry and tyre production.  Some of the rubber production will be sold to KamaTyresKZ plant located in Saran, Karaganda region.  Tatneft owns a 51% stake in KamaTyresKZ.  Another 40,000 tpa of styrene-butadiene-styrene rubber (SBS) required for road surfaces and plastics.  The new plant is planned to produce five different types of products, including styrene-butadiene-styrene (rubber used in road surfaces, divinyl-styrene synthetic rubber (needed in the tyre industry, butadiene (used for the production of synthetic rubbers), isobutane-isobutylene fraction (intended for the production of MTBE, butyl rubber, and isoprene and alkylate) and MTBE. 

SOCAR Jan-May 2025

Azerbaijan produced 183,800 tons of methanol in January to May 2025 versus 207,100 tons in January to May 2024.  Azerbaijan exported 171,699 tons of methanol in the first five months which was 32.2% down in the same period last year, whilst export revenues rose by 25.3% to $39.313 million.  Azerbaijan started shipping methanol to Gibraltar in April for the first time, after having started shipments to Israel at the start of the year. Azerbaijan’s methanol exports are distributed between southern European countries including Romania, Italy, and Gibraltar.  Other countries include Greece, Turkey and Israel.