Czech crude imports Jan-Apr 2024

Imports of Russian crude into the Czech Republic dropped from 1.517 million tons in the first four months in 2023 to 918,500 tons in the same period in 2024.  Azerbaijan has been the second largest crude supplier to the Czech Republic this year, supplying 847,800 tons rising from 631,700 tons in the same period in 2023.  

The Czech Republic aims to eliminate of its dependence on Russian oil by the middle of 2025 at the latest. The deadline depends on the completion of the expansion of the Transalpine Oil Pipeline (TAL-PLUS).

The TAL-PLUS project will mean in practice that the Czech Republic will be able to transport four million tons more oil per annum via the western route. Thus, the Czech Republic will be able to completely replace the oil transported through the Druzhba pipeline.  Technologically, it should be ready by the end of this year and full launch is expected no later than the first half of 2025.

The TAL pipeline connects the port of Trieste, Italy, with Central European countries. Oil flows through Austria to Ingolstadt in Germany, from where it continues to the Czech Republic via the IKL pipeline.

For most of this year the Czech Republic is expected to purchase Russian crude, assuming there are no disruptions on the Druzhba. 

MOL’s oil diversification

MOL aims to be completely free of Russian crude by the start of 2026.  By the end of 2024 the group aims to have reduced crude purchases from Russia to around 50% of total supply, although in the first quarter this year Russia was almost the sole supplier to Hungary.   Since 2022 MOL Group has tested eight different crude types to see how suitable they would be on the current refinery and what investments are required.  MOL estimates that it needs to spend around $500 million for full diversification.  

Slovnaft can only export products made from Russian oil to the Czech Republic until this December, when an exemption from sanctions imposed by the EU on Russia over its invasion of Ukraine expires.  At the end of last year, the EU extended the exemption for imports of Russian oil products into the Czech Republic until 5 December, but only in volumes comparable to the last five years.

Polish oil imports Jan-Apr 2024

From the total of 10.082 million tons of crude imported into Poland in the first four months in 2024. supplies from Saudi Arabia totalled 4.456 million tons at €558.0 per ton and from Norway 4.304 million tons at $539.1 per ton.  After a number of agreements with Orlen, supplies from Norway have shown the largest increase this year, more than doubling from its 2.052 million tons in the same four months in 2023.  This has helped replace supplies from Russia which stopped in February 2023.  Other suppliers to Poland include Nigeria, the US and UK.  Orlen’s model refining rate averaged $15.9 per barrel against $18.3 in the same period last year and only $6 in 2022. 

Polish petrochemical production Jan-Apr 2024

Polish chemical production continues to face a range of economic challenges, symptomatic of the European chemical industry, although with slightly improving prospects for this year.  Ethylene production in Poland dropped slightly from 123,200 tons in January to April 2023 to 122,800 tons in the same period in 2024, whilst propylene rose from 110,100 tons to 129,500 tons.  Propylene production will be boosted this year through the Polimery Police plant.   Butadiene production at Plock dropped to 19,800 tons in the first four months from 20,900 tons. 

In the plastics sector polyethylene production increased to 108,300 tons in January to April 2024 versus 19,800 tons in 2023.  Polypropylene production at Plock increased from 92,500 tons to 109,800 tons.  PVC production fell from 80,500 tons to 66,300 tons, although it should be noted that the plant at Wloclawek restarted production in February after a four-month stoppage period.

Polish propylene & butadiene imports, Jan-Apr 2024

Poland imported 38,362 tons of propylene in January to April 2024 against 40,362 tons in January to April 2023.  Germany increased shipments to Poland from 26,417 tons in the first four months last year to 32,265 tons this year, with other sources coming from the Czech Republic and Bulgaria.   Average propylene import prices amounted to €851.3 per ton in the first four months declining from €972.6 per ton last year.

Butadiene import prices for Poland dropped from €913.1 per ton in January to April 2023 to €721.2 per ton in January to April 2024, with volumes rising slightly from 26,385 tons to 33,028 tons.  Despite tight European supply, butadiene prices have remained weak due to stagnant demand patterns in the rubber industry.  Imports of butadiene into Poland from Hungary rose from 8,857 tons in 2023 to 15,189 tons in 2024 whilst imports from Austria dropped from 14,441 tons to 11,318 tons.  

Czech olefin monomer trade, Jan-Apr 2024

Czech imports of ethylene were insignificant in the first four months in 2024, whilst exports of ethylene dropped slightly to 3,779 tons against 3,970 tons in the same period in 2023.  Propylene imports into the Czech Republic dropped from 17,535 tons in January to April 2023 to 10,848 tons, with Germany providing nearly all shipments this year. 

Average prices for propylene imports amounted to €837.3 per ton in the first four months this year against €1063.3 per ton in January to April 2023.  In addition to lower imports this year Czech exports of propylene amounted to 5,122 tons.  Czech imports of butadiene dropped to 15,001 tons in January to April 2024 against 35,198 tons in the same period last year.  All of the imports in both years was supplied by Germany and Hungary.  Prices dropped dropping from €1178 per ton to €703.8 per ton. 

Hungarian propylene-butadiene trade Q1 2024

The propylene supply chain in Hungary has been transformed following the start-up of the new polyol, propylene oxide and propylene glycol facilities at Tiszaujvaros.  In order to support the production of propylene derivatives a new propylene plant is under construction at Tiszaujvaros with a capacity of 100,000 tpa.  Construction of a polymer grade propylene plant on a greenfield site started in 2022 and is close to completion. 

In the first phase of the production of polyols the requirements for propylene monomer at the top of the chain could affect MOL’s surplus which is normally exported. 

Exports of propylene from Hungary amounted to 30,342 tons in January to March this year against 27,266 tons in January to March 2023, all of which went to Slovakia.  Prices averaged €1047.5 per ton in the first quarter against €1152.4 per ton last year. 

Hungarian butadiene exports amounted to 17,466 tons in the first quarter against 16,036 tons in the same period in 2023.  Shipments into Poland totalled 7,090 tons in January to March against 10,248 tons last year whilst exports to Germany rose from 1,995 tons to 10,248 tons.  Average prices for Hungarian butadiene exports fell to €749.7 per ton versus €882.4 in 2023.

Styrene imports into Hungary amounted to 20,776 tons in the first quarter this year against 21,880 tons in the same period in 2023.  Italy remains the dominant source of styrene imports into Hungary, supplied by Versalis to its polystyrene plant at Szazhalombatta.  Prices for styrene imports into Hungary rose from €1317.2 per ton in January to March 2023 to €1385.9 per ton in 2024.

Czech-Polish styrene imports Jan-Apr 2024

Styrene imports into the Czech Republic dropped from 10,019 tons in the first four months to 3,421 tons in the same period in 2024.  At the same time as imports were falling, exports of styrene from the Czech Republic increased from 5,050 tons last year to 6,193 tons.

Central European styrene trade Jan-Apr 2024

Synthos in Poland imported 39,826 tons of styrene in January to April 2024 against 26,981 tons in January to April 2023.  The Netherlands was the largest supplier shipping 14,742 tons against 13,878 tons in January to April 2023.  Styrene import costs into Poland rose from €1176.1 per ton last year to €1415.5 per ton in January to April 2024.  Saudi Arabia supplied 4,072 tons to Poland in April, the first time that styrene monomer had been sourced from this country. 

Synthos uses styrene throughout its three main divisions including synthetic rubber, insulating materials and dispersions.  Synthos is the leading European manufacturer of synthetic rubbers and the largest European producer of extruded polystyrene.  It produces both expanded polystyrene and general-purpose polystyrene, whilst the dispersions uses styrene monomer in the production of styrene-acrylic and vinyl dispersions.

Czech Polyethylene Exports (unit-kilo tons)

Czech prices for both imports and exports of polyolefins have trended lower in the first four months in 2024 against the corresponding period in 2023, but at the same time trade has increased slightly by volume. 

For imports of all forms of polyethylene, Czech inward shipments amounted to 101,966 tons in January to April 2024 against 98,216 tons in the same period in 2023, with prices dropping from €1719.2 per ton to €1500.6 per ton.  Germany was the largest source of polyethylene imports, followed by Belgium with 35,954 tons for €55.357 million.

Polyethylene exports from the Czech Republic amounted to 127,602 tons in the first four months last year to 133,270 tons in 2024. 

Average prices dropped from €1453.6 per ton in 2023 to €1391.3 per ton in 2024.  HDPE export shipments comprised 112,250 tons in the first four months in 2024 against 113,399 tons in the same period in 2023.  Germany was the largest destination for Czech HDPE supplied from Litvinov.  Other important markets for Czech polyethylene exports include Poland, Italy and Belgium.  In June this year the Orlen Group has launched a modern installation at its Litvinov plant, which will increase sevenfold the production capacity of no-dust blends used for the production of polyethylene and polypropylene.

Polish polyethylene trade Jan-Apr 2024

Polish trade in polyethylene increased in the first four months this year against the same period in 2023 both imports and exports.     Overall Poland carries a large deficit in polyethylene supply, which is major factor justifying Orlen’s Olefiny 111 project at Plock currently under construction.

Despite the negative outlook for the European market, polyethylene trade volumes in Poland indicate signs of underlying improvement.  Polish imports of polyethylene totalled 452,431 tons in the first four months in 2024 against 389,389 tons in the same period in 2023, with average prices falling from €1485.9 per ton to €1259.5 per ton.

HDPE is the largest category of imported polyethylene into Poland, amounting to 141,812 tons in January to April 2024 versus 137,081 tons in January to April 2023.  Germany is the largest supplier of HDPE to the Polish market.   

LLDPE imports rose from 66,379 tons in January to April 2023 to 71,029 tons in the corresponding period in 2024.  Most of the LLDPE imports were sourced mostly from West Europe, including France, the Netherlands and Germany.  LDPE imports remained relatively stable, amounting to 114,212 tons versus 104,988 tons last year.

Polish polyethylene exports amounted to 105,003 tons in the first four months in 2024 against 95,784 tons in the same period in 2023.  Average prices for polyethylene exports from Poland increased to €1350.9 per ton against an average of €1179.3 per ton in the period January to April 2023. 

Exports of HDPE from Poland amounted to 64,679 tons versus 64,829 tons in the same period in 2023 whilst LDPE exports rose from 16,782 tons versus 17,473 tons.  Exports of ethylene alpha olefins amounted to 9,695 tons in the first four months in 2024.

Hungarian polyethylene trade Jan-Mar 2024

Hungarian polyethylene exports amounted to 75,904 tons in January to March this year against 91,094 tons in January to March 2023, whilst average prices dropped from €1343.4 per ton to €1222.5 per ton.  Revenues for polyethylene exports in January dropped from €122.370 million last year to €92.793 million.  In terms of category HDPE exports dropped from 59,904 tons in January to March last year to 52,213 tons whilst LDPE exports dropped from 25,869 tons to 16,453 tons. 

 Hungary remains a net exporter of LDPE and HDPE, whilst a net importer of LLDPE and ethylene copolymers.  Imports of all grades of polyethylene into Hungary amounted to 49,833 tons in January to March this year against 47,869 tons in January to March 2023. 

Import costs for polyethylene fell to €78.598 million against €88.685 million.  Hungarian import prices for polyethylene decreased on average from €1852.7 per ton to €1577.2 in January to March 2024.  The largest category of polyethylene imports comprised HDPE, which dropped from 21,253 tons to 20,667 tons.   

Polish PP Trade Jan-Apr 2024

Polish polypropylene imports, including homo grade and copolymers, increased in the first four months to 162,529 tons against 145,452 tons in the same period in 2023.   

Average prices for all types of polypropylene decreased from €1537.7 per ton to €1332.1 per ton.  Homo grade polypropylene imports increased from 191,706 tons in January to April last year to 199,351 tons in 2024, whilst copolymer imports increased from 95,145 tons to 106,635 tons. 

Regarding export activity from Poland, shipments amounted to 115,909 tons against 80,902 tons in January to April 2023.  Homo polymer grades comprised the main category of Polish polypropylene exports, where Germany was the largest destination.  

Consumption of polypropylene in Poland performed slightly better in the first four months this year against the same period in 2023, rising from 305,400 tons to 308,800 tons.   Markets are expected to rise in the second half of 2024.

The production capacity of the new Polimery Police plant has been designed to gradually increase to its nameplate capacities of 429,000 tpa of propylene and 437,000 tpa of polypropylene. The first types of polypropylenes have already been produced in the installations of the new plant.   The product portfolio is being expanded to reach the target production of more than 30 types of Gryfilen polypropylene®, including homopolymers, random copolymers and impact copolymers.

Czech polypropylene production and trade Jan-Apr 2024

Exports of all forms of polypropylene from the Czech Republic amounted to 98,572 tons in January to April this year versus 100,797 tons in the corresponding period in 2023, with average prices dropping from €1539.6 per ton to €1454.0.  Homo-grade PP provides the main category of Czech polypropylene exports, amounting to 80,134 tons in the first four months this year versus 81,325 tons in 2023.   

For imports of all forms of polypropylene, Czech inward shipments increased to 177,497 tons in January to April 2024 from 170,692 tons in 2023, with average prices dropping from €1672.6 per ton to €1553.8 per ton.  Imports of propylene copolymers increased from 71,625 tons to 73,588 tons whilst homo grade polypropylene imports increased from 93,937 tons to 98,501 tons.    

Hungarian polypropylene trade Jan-2024

MOL shipped 59,398 tons of propylene polymers in January to March this year from Hungary against 63,177 tons in January to March 2023 with average prices dropping from €1408.3 per ton to €1321.2 per ton. 

Homo grade polypropylene exports amounted to 12,362 tons (valued at €15.051 million) in January versus 34,228 tons in January to March 2023 (valued €42.867 million), whilst exports of propylene copolymers dropped from 24,222 tons (valued at €35.220 million) to 18,790 tons (valued at €27.140 million).

Polypropylene imports into Hungary amounted to 54,756 tons in January to March 2024 against 49,241 tons in January to March 2023, with average prices dropping to €1514.5 per ton versus to €1611.1 per ton in the first quarter last year.  By category homo grade imports into Hungary comprised 35,146 tons in January to March 2024 against 28,757 tons whilst imports of copolymers dropped to 13,854 tons against 14,643 tons.

HIP Petrohemija-polypropylene project

HIP-Petrohemija has undertaken a tender for the technical documentation and the provision of permits necessary for the polypropylene project. The deadline for applying for the tender was 17 June.  Thus far the two options are being decided between plant capacities of 140,000 tpa and 240,000 tpa.  NIS, as the majority owner of Petrohemija, has pledged more than €150 million in the construction of the new petrochemical plant.   Current polypropylene production in Serbia amounts to no more than 38,000 tpa, and the plant technology is considered relatively obsolete.   

Czech synthetic rubber trade Jan-Apr 2024

Exports of synthetic rubber amounted to 46,970 tons in January to April 2024 versus 55,875 tons in the same four-month period in 2023.  At the same time imports increased from 42,123 tons to 49,755 tons in January to April 2023. 

Imports of halogenated butyl rubber (HBR) into Poland dropped from 3,655 tons in the first four months in 2023 to 1,625 tons in the same period in 2024. The largest supplier this year has been Belgium which shipped 605 tons in the first four months.  Although Russia has been able to sell HBR into the EU area until June this year, Nizhnekamskneftekhim started reducing shipments to the European market from late 2022 and supplied only 60 tons in the first four months this year.  Nizhnekamskneftekhim has since focused on trade with China.

Czech butadiene rubber trade Jan-Apr 2024

The Czech Republic exported 58,960 tons of butadiene rubber in the first four months in 2024 against 52,498 tons in the same period in 2023.  Average prices rose from €1849.4 per ton to €2163.4per ton.  

Czech exports of butadiene rubber to India amounted to 5,006 tons in January to April 2024 against 4,198 tons last year.  Other important markets included Poland where exports amounted to 4,617 tons against 3,045 tons.   Besides exports the Czech Republic also imported 5,144 tons of butadiene rubber in the first four months in 2024. 

Hungarian synthetic rubber imports Jan-Mar 2024

Hungarian imports of synthetic rubber amounted to 27,671 tons in January to March 2024 against 37,353 tons in January to March last year.  Average prices dropped slightly from €2442.0 per ton to €2405.0 in 2024.  Butadiene rubber imports into Hungary dropped from 14,775 tons to 6,889 tons, with the largest source coming from Indonesia.  Imports of halogenated butyl rubber dropped from 2,634 tons in January to March last year to 894 tons and SBR imports rose from 11,511 tons to 13,711 tons.  

Polish rubber trade Jan-Apr 2024

Rubber import prices into Poland, for both synthetic and natural, recorded gradual declines during 2023 as a combination of economic factors took effect.  For all types of synthetic rubber average prices dropped from €2398.2 in January to April 2023 to €1787.9 in the first four months in 2024. 

Butadiene prices have stayed relatively low despite supply tightness, whilst demand is making tentative signs of improvement.  Butyl rubber prices experienced an increase in both the US and European markets, primarily driven by heightened demand from the downstream automotive sectors. In contrast, the construction sector saw a declining trend.

Poland imported a total of 128,807 tons of synthetic rubber in January to April 2024 against 92,872tons.  By category butadiene rubber was the largest product, accounting for 34,753 tons against 21,397 tons in the same period in 2023.   Isoprene rubber imports jumped from 3,752 tons in the first four months last year to 22,688 tons in the same period in 2024.   Imports of synthetic rubber from Russia have become insignificant this year in response to sanctions.  Last year imports of synthetic rubber from Russia amounted to 50,547 tons in 2023 which dropped from 92,653 tons in 2022 and 133,341 tons in 2021.  Russia was able to export most grades of synthetic rubber up until June 2024.

Natural rubber imports into Poland totalled 39,386 tons in the first four months this year at an average price of €1620 per ton.  Prices averaged €1529 per ton.

Synthetic rubber exports from Poland amounted to 128,807 tons in the first four months in 2024 against 92,872 tons in January to April 2023.   Exports of butadiene rubber from Poland amounted to 29,208 tons in January to April versus 15,618 tons in the same period in 2023.  

The largest category of rubber exports focuses on SBR grades.  Prices of synthetic rubber exports from Poland dropped from €1786.8 per ton in the first four months last year to €1488.1 per ton this year.  Although both import and export volumes for synthetic rubber have been very similar this year, the prices for imported grades mostly exceed export prices.  The trend for all forms of trade have been downward since the start of 2023. 

Polish synthetic rubber production and domestic market Jan-Apr 2024

Synthetic rubber production at Oswiecim for Synthos amounted to 90,600 tons in January to April 2023 from 81,100 tons in 2023.  Synthos has managed to diversify its export markets which has allowed the company to increase production over 2023.  At the same time the production of synthetic rubber has been affected by demand side factors which saw a reduction of consumption in 2023 and the first few months of 2024. 

Synthos is the largest European producer of styrene butadiene rubber (ESBR and SSBR), also offers neodymium polybutadiene rubber (NdBR), high styrene rubber (HSR) and nitrile butadiene rubbers (NBR).  Sales have been under pressure over the past few years, firstly from the economic effects from COVID and then the effects of the war in Ukraine.  The group reported an operating loss in the fourth quarter in 2022 but since then has reported quarterly profits by quarter even if only modest. 

Sales from the rubber division of Synthos made some recovery in the first quarter in 2024 in terms of revenues, achieving €243.8 million.  Energy and raw material costs were almost exactly the same which helped restrict profits.

Polish benzene exports Jan-Apr 2024

Polish exports of benzene totalled 57,632 tons in January to April 2024 against 46,439 tons in the same period in 2023.  Exports to Germany increased in the first four months from 35,312 tons last year to 44,015 tons, with average prices rising slightly from €849.8 per ton to €957.7 per ton.  Benzene exports from Poland stem largely from Petrochemia Blachownia at Kedzierzyn-Kozle. 

Polish-Czech aromatic imports Jan-Apr 2024

Phenol imports into Poland amounted to 31,930 tons in January to April 2024 which was up from 26,591 tons in 2023.  Germany was the dominant supplier of phenol to Poland, shipping 23,122 tons against 21,668 tons in the same period in 2023.    Average prices for phenol imported into Poland rose slightly in the first four months to €1328.3 per ton against €1318.3 per ton in the first four months last year. 

In other product areas, styrene imports amounted to 31,814 tons in the period January to April 2024 against 26,835 tons in the same period in 2023.  Ethylbenzene imports amounted to 20,305 tons against 20,653 tons in the same period last year.  All the ethylbenzene was shipped from Kralupy to Oswiecim, all within the structures of the Synthos Group. 

Regarding Czech trade in aromatic monomers and derivatives, styrene exports from Kralupy amounted to 6,214 tons from 5,050 tons in January to April 2023.  Caprolactam exports increased from 7,404 tons to 10,800 tons, with prices dropping from €1756.0 per ton to €1626.9 in 2024.  Italy was the largest destination for Czech caprolactam exports, amounting to 5,088 tons.

The Czech Republic supplied 3,433 tons of phthalic anhydride to Poland for €4.943 million.  Phthalic anhydride is supplied by the Czech Republic from the Deza plant at Valasske Mezirici.

Czech benzene imports increased to 9,587 tons in January to April 2024 against 8,637 tons in the same period in 2023, whilst exports rose from 14,144 tons to 23,760 tons.  Toluene imports dropped to 2,093 tons, whilst Imports of bisphenol A rose from 7,570 tons to 11,436 tons. 

Czech Bisphenol A imports & epoxy resin exports  

Bisphenol A imports into the Czech Republic totalled 11,436 tons in January to April 2024 against 7,570 tons in the same period in 2023.  South Korea increased shipments from 2,879 tons to 7,340 tons.  The largest user of bisphenol A in the Czech Republic is Spolchemie at Ust nad Labem, where epoxy resins are produced. 

Czech exports of epoxy resins amounted to 17,417 tons in the first four months in 2024 against 17,808 tons in 2023.  Whilst volumes were similar, prices fell sharply from €3,495.3 per ton to €1,873.2 per ton.  Germany remains the largest market for Czech epoxy resins, accounting for 5,790 tons in the first four months in 2024.  Spolchemie’s capacity for epoxy resin production amounts to 100,000 tpa making it one of the largest producers in Europe.  The company is one of the oldest chemical companies in the Czech Republic. 

Imports of epoxy resins Into Poland amounted to 2,060 tons in the first four months in 2024.  Epoxy resin production in Poland takes place at Lerg (formerly Ciech Zywice) which is the sixth largest producer in Europe at 30,000 tpa.  Aside domestic production the most serious competitors in Poland include resin suppliers from Germany, the Czech Republic and Italy.

Hungarian aromatic trade Jan-Mar 2024

Hungarian benzene exports amounted to 8,314 tons in January to March for total costs of €8.832 million.  Exports dropped from 30,702 tons in the first quarter last year with shipments to Germany dropping from 12,949 tons to 3,758 tons. 

The production of toluene at Szazhalombatta is insufficient to cover Hungarian demand (for TDI) and thus imports are required.  Toluene imports into Hungary amounted to 13,162 tons in January to March this year for costs of €13.089 million.  Slovakia supplied 3,074 tons of toluene in January to March for €2.438 million, whilst Germany supplied 5,984 tons for €6.288 million.   Romania supplied 1.976 million tons for €1.987 million.

Polish PTA exports Jan-Apr 2024

PTA exports increased sharply in the first four months from 65,060 tons last year to 109,432 tons in the same period in 2024.  Exports to Germany increased from 53,430 tons to 93,427 tons.  Average prices for PTA changed slightly from €712.7 per ton in the first four months in 2023 to €746.8 per ton. 

PKN Orlen operates a modern PX/PTA complex with a capacity of around 690,000 tpa of PTA.  PKN Orlen is the only producer in Europe to have production units fully integrated with paraxylene production.  Revenues from PTA sales for Orlen, including export or domestic, amounted to €174.2 million in the first quarter against €80.3 million in the same period last year.  By volume sales rose from 107,000 tons in January to March 2023 to 146,000 tons in January to March 2024.  Exports accounted for 57.5% of total sales.

Hungarian TDI-MDI exports Jan-Mar 2024

Hungarian TDI exports rose in January to March 2024 to 78,503 tons against 61,595 tons in January to March 2023.  Average prices dropped from €3110.9 per ton to €1960.3 per ton.  Prices have been influenced to some extent by demand but predominantly feedstocks and lower costs of toluene. 

Exports of TDI from Hungary to Belgium rose from 9,484 tons in the first quarter last year to 10,440 tons in January to March 2024, whilst volumes to Italy increased from 8,217 tons to 9,171 tons.  In Central Europe shipments to Poland increased from 8,005 tons to 8,416 tons and rose to Turkey from 9,648 tons to 16,191 tons.

MDI exports from Hungary amounted in January to March to 70,097 tons against 53,002 tons in January to March last year.  MDI export prices have undergone a different cycle to TDI, dropping from €2479.9 per ton in January to March 2023 to €1833.5 per ton this year.

Poland was the largest destination for Hungarian MDI exports, taking 11,751 tons in the first quarter in 2024 versus 12,540 tons in January to March 2023.  Exports to France dropped from 4,540 tons to 3,583 tons whilst to Germany exports declined from 6,778 tons to 6,144 tons.  

Central European isocyanate trade Jan-Apr 2024

TDI prices in Europe have been relatively stable this year until the first part of June when prices dropped slightly due to subdued demand and stable supplies. The demand for TDI was sluggish from the downstream polyurethane industries.  Car sales in Germany fell by 2.7% in May 2024 indicating weakness in the polyurethane market and thus demand for TDI.

Against the backdrop of weak demand, the strength of the supply side has placed pressure on pricing.  Toluene supplies attributed to a decline in cost support from upstream oil prices. 

TDI imports into Poland amounted to 26,900 tons in January to April 2024 against 22,670 tons in January to April 2023.  Prices dropped from €3176.1 per ton last year to €2058.2 per ton.  The cost of toluene was one of the factors behind the rise in TDI prices in the first half of the year but then slowed down later in the year allowing TDI prices to move downwards.  Further erosion in toluene prices in the third quarter could allow producers scope for lowering TDI prices, with the aim to reduce inventories.

MDI prices had been strengthening in May, but it is not clear if they will follow the same trend as TDI.  MDI imports into Poland totalled 53,475 tons in January to April 2024 against 46,719 tons in January to April 2023.  Average prices dropped from €2358.1 per ton to €1881.3 in January to April 2023.  Germany increased shipments to 16,034 tons against 11,831 tons in January to April 2023, whilst imports from Hungary amounted to 13,446 tons against 12,847 tons.  Belgium increased shipments of MDI to 11,383 tons in this year from 6,859 tons in the same four months in 2023.

MDI imports into the Czech Republic totalled 13,141 tons in January to April 2024 against 12,143 tons in the same period in 2023.  Average prices rose from €1768.8 per ton to €2057.8 per ton.    The leading supplier so far in 2024 was Belgium which shipped 3,143 tons against 3,186 tons in January to April 2023. 

Czech polyol imports Jan-Apr 2024

Czech polyol imports amounted to 15,760 tons in the first four months this year against 25,692 tons in the same period in 2023, with average prices dropping from €2656.4 per ton to €2296.0 per ton.  The leading supplier was Belgium shipping 4,184 tons in the period January to April 2024 against 7,320 tons last year, followed by France which exported 3,041 tons which was down from 4,184 tons. 

Hungarian polyol imports Q1 2024

Imports of polyols into Hungary dropped in the first quarter this year to 10,669 tons against 19,198 tons in the same period in 2023.  Average prices dropped to €1757.9 per ton.  Imports from Belgium dropped from 12,419 tons to only 702 tons.  After the official start-up of the MOL plant at Tiszaujvaros in May, Hungary is expected to become a major exporter of polyols.

Polish polyol trade Jan-Apr 2024

Polish polyol imports amounted to 48,315 tons in the first four months in 2024 against 45,708 tons in the same period in 2023.  The major sources of imports came from Belgium, Germany and the Netherlands.  The Netherlands supplied 13,804 tons in January to April 2024 against 8,655 tons last year, whilst Germany supplied 12,417 tons against 10,017 tons.  Polyol import prices into Poland dropped slightly from €2285.5 per ton to €2106.0 per ton. 

Exports of polyols from Poland in the first four months in 2024 amounted to 19,787 tons against 19,829 tons in the same period in 2023.  Destinations for deliveries were focused mostly on Europe, led by Italy taking 3,124 tons in the first four months followed by Germany with 2,554 tons.  Average export prices dropped from €2305.5 per ton to €2044.6 per ton.

Hungarian maleic anhydride exports Jan-Mar 2024

Hungary exported 6,855 tons of maleic anhydride in January to March 2024 against 5,248 tons in January to March 2023.  Average prices dropped from €1308.9 per ton to €1143.4 per ton.  Exports of maleic anhydride to Poland from Hungary increased from 826 tons in the first quarter last year to 2,895 tons this year.  

Hungarian aniline & acrylonitrile imports Jan-2024

Aniline imports into Hungary dropped from 43,128 tons January to March 2023 to 33,351 tons January to March 2024.  Inward shipments from BorsodChem-MCHZ in the Czech Republic amounted to 30,103 tons against 18,061 tons in January to March 2023.  Belgium supplied 3,248 tons against 15,052 tons in January to March 2023.  Cost prices of aniline imports rose from €1441.9 per ton to €1442.3 per ton.

Acrylonitrile imports dropped from 7,565 tons in the first quarter last year to 1,543 tons in the period January to March 2024.   Imports from the Netherlands dropped from 3,871 tons to 1,543 tons.  Average prices for acrylonitrile imports dropped from €2092.8 per ton to €1846.9 this year.

Polish organic chemical trade Jan-Apr 2024

Exports of organic chemicals from Poland fell from 540,900 tons in January to April 2023 to 527,600 tons in 2024, whilst imports dropped from 1.428 million tons to 1.279 million tons.    

Methanol imports into Poland totalled 208,022 tons in January to April 2024 against 235,258 tons in the same period in 2023.  For other organic chemical imports Poland imported 11,185 tons of acetic acid in January to April against 11,983 tons in January to April 2023.  The UK provided 5,410 tons in the first four months this year against 2,404 tons in the same period in 2023.  The UK has replaced the US this year as the largest supplier. 

Ethyl acetate imports into Poland amounted to 5,392 tons in January to April 2024 against 4,965 tons in January to April 2023.  Belgium provided the largest share of imports.  VAM imports amounted to 5,314 tons versus 5,117 tons in January to April 2023. 

Maleic anhydride imports into Poland amounted to 3,628 tons in January-April 2024, down from 4,995 tons in the previous year.  Imports are currently sourced from Germany, Hungary and South Korea. 

Isopropanol imports into Poland amounted to 3,716 tons in January to April 2024 against 3,294 tons in the same period in 2023.  Aside Germany, imports come from the Netherlands and South Africa. 

Ethylene glycol imports dropped in the first four months in 2023 from 35,812 tons to 19,292 tons in the same period this year.  Belgium is the main supplier of glycols to the Polish market.  DEG imports increased to 10,216 tons against 9,488 tons, whilst propylene glycol exports amounted to 12,406 tons against 6,982 tons in the same period in 2024. 

Ethylene oxide imports into Poland totalled 7,848 tons in January to April 2024 versus 6,668 tons in January to April 2024.   Germany currently represents the main source of inward shipments.  Ethylene oxide consumption in Poland should increase after the completion of PCC Exol’s second line of the Ethoxylates II plant at Plock. 

Regarding export activity in organic chemicals, Polish shipments of monochloroacetic acid (MCAA) amounted to 10,387 tons in the first four months against 10,220 tons in the same period in 2023.  MCAA production is undertaken by the PCC Group at Brzeg Dolny. 

Other organic chemical exports from Poland include acetone where shipments amounted to 2,542 tons in January-April 2024 versus 2,927 tons in January to April 2023.   The main markets for Polish acetone exports included Italy, Germany, Romania and Lithuania.  Normal butyl acetate exports dropped from 3,394 tons to 2,977 tons in January to April 2024   The largest destination for Polish butyl acetate exports is Germany.

Czech organic chemical trade Jan-Apr 2024

Czech organic chemical trade rose slightly in the first four months in 2024.  The rise in export activity was offset by a minor fall in imports. 

Czech exports of plasticizers totalled 13,928 tons in the first four months in 2024 against 13.,064 tons in 2023.   Plasticizers are produced by Deza which is part of the Agrofert Group.  Deza also produces phthalic anhydride where exports amounted to 3,237 tons in the first four months this year against 3,221 tons last year. 

Spolana exported 10,749 tons of caprolactam in the first four months against 7,404 tons in the same period last year.  The main recipient of Czech caprolactam exports in the first four months was Italy, taking 5,087 tons, followed by Slovenia with 2,417 tons.

Czech imports of organic chemicals are led by methanol where volumes amounted to 23,374 tons in the first four months this year against 25,886 tons in the same period in 2023.  Other products imported include oxo alcohols, both in butanols and 2-EH.  Normal butanol imports amounted to 3,557 tons this year versus 4,055 tons whilst 2-EH imports increased from 5,708 tons to 6,834 tons.   Poland accounted for 3,705 tons of Czech imports of 2-EH this year followed by Belgium with 1,927 tons.  Oxygenated solvent imports include acetone and ethyl acetate, amounting to 2,066 tons and 1,218 tons in the first four months this year respectively. 

Czech imports of methanol amounted to 23,374 tons in the first four months in 2024 against 25,886 tons.  Prices per ton for methanol imports into the Czech Republic increased slightly from €390.2 per ton to €381.8 per ton.  Poland supplied 17,552 tons to the Czech Republic in the first four months against 13,311 tons in the same period in 2023, whilst the second largest source of supply came from Germany which amounted to 2,254 tons. 

Methanol imports into Hungary in January to March 2024 rose to 23,236 tons against 22,226 tons in January to March 2023.  Imports from Germany increased from 7,067 tons to 17,658 tons, replacing sources from Poland and Slovakia last year.  Imports from Slovenia amounted to 4,014 tons in the first quarter this year, against only 139 tons in the same period in 2023.

Central European methanol trade Jan-Apr 2024

Polish imports of methanol amounted to 208,021 tons in the first four months in 2024 against 235,358 tons in January to April 2023.    Average prices amounted to €314.9 per ton against €311.9 per ton last year.  Poland has been developing alternative sources to Russian methanol before the full embargo took full effect in June.  

In order to replace Russian imports, Venezuela supplied 35,245 tons of methanol to Poland in the first four months from zero activity in 2023, whilst Belgium supplied 50,241 tons 16,737 tons.  Other important suppliers included the Netherlands, Norway and Germany. 

Exports of methanol from Poland amounted to 68,813 tons in January to April declining from 120,455 tons in January to April 2023.  Exports declined in 2023 due to lower imported volumes after the sanctions imposed on Russia took full effect after 18 June. 

The largest destination for Polish exports was Germany which took 36,831 tons in the first four months in 2024 against 30,190 tons in the same period in 2023.  Ukraine imported 8,285 tons of methanol from Poland in the first four months 2024 against 8,200 tons in 2023.  Export prices dropped from €387.8 per ton to €375.0 per ton.

Grupa Azoty production Jan-Apr 2024

Since the end of March, Azoty has been applying significant cost cutting measures and trying to find solutions aimed at ensuring financial liquidity.  Apart from optimizing production, the group is focused on completing the Polimery Police investment and agreeing debt repayment terms.  Grupa Azoty has come to an agreement with several banks that give the company time restructure and devise a survival strategy.  In addition to energy costs from 2023 Grupa Azoty has found itself facing higher costs for the Polimery Police project.  Debts facing the group are estimated to total more than zl 10 billion, thus substantially above €2 billion

Grupa Azoty’s production has stabilised in the first four months in 2024, even if the overall volumes are still slightly down in the first four months and the group remains confronted by huge financial challenges. 

Grupa Azoty Q1 2024

Grupa Azoty posted a net loss in the first quarter of 2024, of zl 333 million (€78.1 million). The operating loss amounted to almost zl 260 million (€60.98 million), and sales revenues amounted to almost zl 3.339 billion (€780 million).  Compared to the first quarter in 2023, the net loss decreased by zl 222 million (€52.1 million), the operating loss decreased by zl 337 million (€79.0 million), and sales revenues decreased by almost zl 500 million (€117.3 million).  The EBITDA amounted to minus zl 50 million (€11.7 million), with an EBITDA margin of minus 1.5%.

Demand for the products offered by the Grupa Azoty remained too low in the first quarter for the recovery of operating profitability, especially in the face of a further decline in the prices.  The prices of all production raw materials in the first quarter recorded a significant drop, which in the case of gas amounted to around 50%. The costs of electricity and coal were also lower, but these decreases were insufficient to achieve a positive EBITDA margin.

Sales of nitrogen fertilisers increased by more than 50% in the first quarter, and sales of compound fertilisers increased by 37%. The situation on the fertiliser market was adversely affected by the downward trend in the prices of agricultural products and the supply of fertilisers imported from outside the EU.

Grupa Azoty’s chemical sector recorded a decline in sales in the first quarter although the company was helped by logistical disruptions to imports from Asia.  Grupa Azoty Pulawy restarted melamine production on one installation.  The EBITDA margin of the Chemicals Segment generated in the first quarter in 2024 was minus 14.9%.

Russian base chemical production Jan-Apr 2024

Russian production of chemicals and chemical products in January-April 2024 increased by 1.1% over the same period in 2023 even if not all products are seeing growth.  By European standards, the Russian chemical industry is performing relatively well, having been helped by the domestic market which has offset the decline in export trade.  Russian producers have taken advantage of the withdrawal of Western companies from the Russian market.

Of the major products, only methanol has faced lower volumes in the past year with limitations in market sales.  The loss of the European market has affected methanol producers in Russia more than any other product area.  In the Russian olefin sector, both ethylene and propylene increased production in the first four months with demand strong for most derivative products. 

Ethylene production rose from 1.567 million tons to 1.616 million tons whilst propylene production rose from 898,600 tons to 938,400 tons.  Benzene production increased from 444,500 tons in the first four months last year to 468,300 tons this year. 

Refinery output and naphtha

In the first four months naphtha production in Russia fell to 2.708 million tons from 3.952 million tons in the same period in 2023.  Reduced production has limited exports of naphtha which Russia sends to countries such as India and the UAE.  Moreover, the impact of the drone attacks on Russian refineries has resulted in diverting feedstocks that would normally be used for aromatics production towards gasoline production, thereby driving up the price of toluene amongst other products.   The price rise of toluene and other fuel additives has raised the attention of the government which does not want fuel prices to rise too much. 

Shortage of components for the Russian chemical industry

Russian Ministry of Industry and Trade has emphasised the necessity of developing medium and high processing of raw materials, including catalysts, fine chemicals, etc.  A number of areas, in particular, low-tonnage chemistry, still remain dependent on imported components.   Despite some progress since the introduction of sanctions two years ago the Ministry estimates that at least 750 components are still critically dependent on imports. 

Russian polymer production Jan-Apr 2024

Russian production of plastics in primary forms increased from 3.562 million tons in the first four months in 2023 to 3.670 million tons in the same period this year.  Russian production of polyethylene dropped slightly to 1.207 million tons against 1.236 million tons in January to April 2023. 

Polypropylene production increased from 743,600 tons to 759,700 tons, whilst polystyrene production dropped slightly from 196,000 tons to 194,700 tons.   PVC production increased from 309,300 tons in January to April 2023 to 120,600 tons in the same period in 2024.  The production of polyamide in Russia showed a minor increase to 46,500 tons from 45,700 tons.  Russian production of synthetic rubbers increased to 502,200 tons in January to April 2024 compared to 479,800 tons in 2023.  The rubber market has been helped this year by a recovery in tyre manufacture.

Kazanorgsintez Q1 2024

The net profit of Kazanorgsintez dropped 1.5 times in the first quarter to 4.1 billion roubles from 6.3 billion roubles in the same period in 2023.  Revenues for Kazanorgsintez dropped by 10.5% to 23.2 billion roubles, which was due to modernisation and repairs.  This was particularly focused on the HDPE plant where modernisation has been completed and commissioning started.  This has increased the capacity of the reactor B from 100,000 tpa to 220,000 tpa. 

Production costs for Kazanorgsintez increased in the first quarter by 1.4% to 16.5 billion roubles.  This led to a decrease in gross profit by 31% to 6.6 billion roubles.  The operating profit decreased from 7.8 billion roubles to 4.96 billion roubles.  Profitability of sales dropped from 24.2% last year to 17.5%.

Aside the downtime required in the first quarter for the modernisation of the HDPE reactor, polycarbonate production at Kazanorgsintez was affected by an outage which meant that output was 19% less than planned.  The company hopes that the launch of the modernised HDPE reactor will make up for the losses in the first quarter.  However, to operate the reactor at full capacity Kazanorgsintez is looking towards the start-up of the new EP-600 cracker at Nizhnekamsk which may not be operational until next year.    

Nizhnekamskneftekhim Q1 2024

Nizhnekamskneftekhim increased its net profit by almost four-fold from 1.98 billion roubles in the first quarter in 2023 to 7.65 billion roubles ($91.3 million) in the same period in 2024.  The main reason for the increase in net profit is that more than 70% of the company's expenses are related exclusively to the revaluation of foreign currency debt obligations that are payable in foreign currency. 

Although Nizhnekamskneftekhim's revenue increased by almost 20% in the first quarter (to 54.8 billion roubles), the company’s gross profit decreased by 8.6% from 14.0 billion to 12.8 billion roubles.  As a result, the return on sales in terms of gross profit decreased from 30.4% last year to 23.3%.

Nizhnekamskneftekhim-debts from new cracker

Largely as a result of the EP-600 project, Nizhnekamskneftekhim has accumulated a large portfolio of loans which at the end of March 2024 amounted to 137.7 billion roubles ($1.649 billion).  Due to the complications from sanctions Nizhnekamskneftekhim has been unable to repay the loan without the permission of the government, and rising interest means that the debts could grow if not serviced.  Nizhnekamskneftekhim’s previous owner TAIF borrowed funds to finance the construction of the new olefin complex with a capacity of 600,000 tpa. 

Nizhnekamskneftekhim-reduced production first quarter 2024

Nizhnekamskneftekhim produced 561,000 tons of main products in the first quarter, which is 10.4% less than planned.  The production of rubbers was 22% lower in the first quarter than planned.  Nizhnekamskneftekhim planned that most of the volume of synthetic rubber this year would be marketed and sold in Asian markets, thus replacing most of its sales to Europe, but this process is proving quite difficult.  Overall, Russian products are not always suitable for consumers in this market in terms of specification.

Russian ethylene production Jan-Apr 2024

Russian ethylene production totalled 1.616 million tons in the first four months tons in 2024 against 760,113 tons in the same period in 2023.  ZapSibNeftekhim at Tobolsk produced 543,186 tons in January to April 2024, up from 529,306 tons from January to April 2023.  Stavrolen increased production from 109,327 tons in the first four months last year to 121,078 tons in the same period in 2024. 

Russian propylene production Jan-Apr 2024

Russian propylene production totalled 485,902 tons in the first four months tons in 2024 against 488,223 tons in the same period in 2023.  ZapSibNeftekhim at Tobolsk produced 369,081 tons from 367,386 tons in the same period in 2023.  The Volga-Urals region accounted for a total of 343,272 tons against 324,537 tons in January to April 2023. 

Russian propylene domestic sales Jan-Apr 2024

Russian sales of propylene on the domestic merchant market amounted to 134,312 tons in the first four months this year against 143,738 tons in January to April 2023.   The largest propylene supplier to the domestic market was SIBUR-Kstovo, shipping 64,366 tons against 47,541 tons in January to April 2023.  Lukoil-NNOS reduced propylene sales from 74,879 tons in the first four months to 47,043 tons this year.   Sales from Lukoil-NNOS were affected in the first part of 2024 by to the side-effects of the drone attacks on the refinery.

ZapSibNeftekhim purchased 25,834 tons of propylene in the first four months in 2024 against 48,164 tons in the same period in 2023, whilst Saratovorgsintez reduced purchases from 61,770 tons to 47,769 tons.

SIBUR-Khimprom at Perm increased purchases from 10,293 tons to 21,255 tons whilst Omsk Kaucuk increased purchases from 4,307 tons to 8,789 tons.  The increase in propylene purchases by Omsk Kaucuk was required to provide feedstock for the production of isopropanol.  The other isopropanol producer in Russia, the Plant of Synthetic Alcohol at Orsk, purchases in the main propane-propylene fractions.

Russian plastics production Jan-Apr 2024

Russian bulk plastics production amounted to 3.670 million tons in January to April 2024 against 3.562 million tons in the same period in 2023 and against 3.557 million tons in 2022. 

Production of ethylene polymers amounted to 1.237 million tons in the first four months in 2024, up from 1.250 million tons in the same period in 2023.  From the totals, the main grades of polyethylene accounted for 1.137 million tons against 1.108 million tons.

ZapSibNeftekhim is the largest Russian producer, increasing production polyethylene grades from 531,985 tons to 553,957 tons in January to April 2024, nearly all of which comprised main polyethylene grades HDPE and LLDPE.

Exports of polyethylene from Russia in 2023 fell by 35% compared to 2022 to 740,000 tons.  Overall, the market for ethylene polymers has undergone significant changes in the past two years.  The share of export supplies of Russian-made polyethylene has declined over the past three years from 58.1% in 2021, 51.8% in 2022, and 32.6% in 2023.

The main reason for the reduction was the growth of polyethylene processing in Russia and the resulting partial reorientation of export flows to the domestic market. The production of polyethylene in Russia in 2023 increased by 1% compared to the previous year from 3.190 million tons to 3.230 million tons, while its processing increased by almost 18% to 2.9 million tons.

Aside main grades of polyethylene, including LDPE, LLDPE and HDPE, the production other grades of ethylene polymers is relatively small in Russia.  The higher value market is characterized as relying to a large extent on imports, although this position to change.   Hexene production facilities are under construction at Nizhnekamsk which will allow the production of ethylene

SIBUR plans to launch production of high strength metallocene polyethylene at Nizhnekamsk in the next two years in order to reduce the need for imports.  The capacity of premium metallocene polyethylene is expected to be designed to produce around 300,000 tpa. 

The new project, once fully operational, is intended to completely cover the needs of the domestic market for polyethylene grades, which are used in the manufacture of films, dyes, threads, corrugated pipes, etc.

Russian polyethylene trade Jan-Apr 2023

Russian polyethylene exports to China increased from 78,178 tons in January to April 2023 to 147,085 tons in 2024, with both HDPE and LDPE showing rises.   Average prices for Russian polyethylene exports to China rose from $826.3 per ton to $954.3 which meant that revenues increased from $64.600 million to $140.365 million. 

Inward shipments of polyethylene from China into Russia amounted to 30,311 tons in the first four months against 34,115 tons in the same period in 2023.  The most expensive grades of polyethylene included ethylene-vinyl acetate and ethylene-hexene copolymers.  Average prices fell in 2024 to $1475.0 per ton from $1932.5 in the same period in 2023 whilst import costs for Russia dropped from $65.659 million to $44.199 million.   

Imported ethylene polymers from China are largely higher value-added products than those exported from Russia to China.  The largest volume in the first four months this year was ethylene-hexene copolymers which amounted to 9,919 tons, followed by ethylene-vinyl acetate with 4,491 tons.

Russian polypropylene production Jan-Apr 2024

Production of propylene polymers totalled 765,904 tons in the first four months in Russia against 735,279 tons in the same period in 2023.  ZapSibNeftekhim increased production from 381,233 tons against 402,078 tons in January to April 2024, whilst Stavrolen at Budyennovsk increased production from 40,103 tons to 47,317 tons.   The Moscow refinery increased polypropylene production from 53,088 tons to 54,374 tons.  The Volga region, including Nizhnekamskneftekhim and Ufaorgsintez, produced 139,239 tons against 139,043 tons.  The Siberian region, which includes Tomskneftekhim and Polyom at Omsk, reduced production slightly from 120,029 tons to 119,259 tons.

Production in Russia is mostly focused on homo grade product and thus most copolymers are imported which is currently from China.  The construction of another Russian polypropylene plant, which will produce 570,000 tpa of polypropylene, began at the Tobolsk site of ZapSibNeftekhim in August 2023.  Production is expected to be launched in 2027.  The new DGP-2 plant should increase the capacity of ZapSibNeftekhim to a total of 1.5 million tpa of polypropylene.

The problem of personnel is a worrying factor for polypropylene and plastics consumption in general in Russia. The shortage of personnel is becoming more and more widespread. The reduction of the labour force in the labour market is associated with such circumstances as employment in defence orders, the outflow of the male population, and the departure of migrants from the country.

Russian-Chinese polypropylene trade Jan-Apr 2024

Both Russian exports of propylene polymers to China and imports from China into Russia dropped in the first four months after rises recorded in trade since the middle of 2022. China increased export sales of polypropylene to Russia to 57,099 tons in 2023 against 31,404 tons in 2022.  Exports of polypropylene from Russia to China increased to 157,109 tons in 2023 against 70,054 tons in 2022. 

At the same time imports from China dropped from 17,960 tons in the first four months in 2023 to 10,039 tons in 2024, whilst costs dropped from $36.746 million to $14.453 million.  In the first four months in 2024 Russian exports of polypropylene to China dropped four months to 41,925 tons against 88,281 tons in the same period in 2023, with revenues falling from $66.241 million to $35.118 million.

Russian PX-PTA-PET production Jan-Apr 2024

Russian paraxylene production amounted to 85,923 tons in the first four months in 2024 against 82,527 tons in the same period in 2023.  Gazprom Neft at Omsk increased production from 18,436 tons to 30,919 tons whilst Ufaneftekhim reduced production from 51,768 tons to 38,716 tons.

PTA production at Polief amounted to 117,252 tons in the first four months in 2024, combined with 74,285 tons of PET at Blagoveshchensk in Bashkortostan.  In addition to commercial grade PTA Polief also produces salts for PTA in small quantities.  Polief is currently Russia’s largest producer of PET, surpassing Ekopet at Kaliningrad.  Ekopet produced 66,252 tons of PET in the first four months in 2024, whilst the combined plants of Senezh and SIBUR-PETF produced 66,605 tons.

Russian PTA imports Jan-Apr 2024

Russian PTA imports from China amounted to 88,454 tons in the first four months in 2024 versus 85,412 tons in the same period in 2023.  Nearly all of the PTA imports from China were shipped to Ekopet at Kaliningrad by rail.  PTA import prices averaged $759.735 in the first four months in 2024, down from $779.758 in 2023.  Last year values of imports amounted to $193.5 million in against $213.6 million in 2022 and $182.7 million in 2021. 

The Council of the Eurasian Economic Commission has extended the zero-import duty on terephthalic acid and its salts for a period of two years.  This means that the zero rate will stay in force until 31 March 2026.

Russian synthetic rubber production Jan-Apr 2024

Synthetic rubber production in Russia amounted to 502,241 tons in January to April 2024 against 479,772 tons in the same period in 2023 but still lower than recorded in the three previous years 2022-2020.  Production tended to stabilise in the latter part of 2023 but is still much lower than prior to the full-scale Russian invasion of Ukraine.

In terms of regional production, the Volga region is the most important for synthetic rubber production.  This region includes Nizhnekamskneftekhim, Togliattikaucuk, and Sterlitamak Petrochemical Plant, accounting for around 70% of total production.  In the first four months this year the Volga region accounted for 357,027 tons of synthetic rubber against 339,070 tons in the same period in 2023. 

Voronezhsintezkaucuk is the only producer of synthetic rubber in the Central Federal District of Russia, accounting for around 20% of production, where volumes amounted to 108,862 tons in the first four months against 99,185 tons in the same period last year.  Voronezhsintezkaucuk has recently completed modernisation of the polybutadiene plant which involves the reduction of the generation of wastewater by 12%, and waste by 13%.  The aim of the modernisation is the elimination of greenhouse gas emissions through less usage of natural gas, whilst at the same time reducing the volume of indirect emissions.   

The largest category of synthetic rubber production in Russia comprises SKS-SKMS which amounted to 98,582 tons in the first four months this year.  Butadiene rubber amounted to 94,195 tons followed by isoprene rubber where production total 88,150 tons.  The highest value rubber sold by Russia is halogenated butyl rubber which is produced only by Nizhnekamskneftekhim where capacity was expanded at the start of 2024.  Production of halogenated butyl rubber at Nizhnekamsk amounted to 38,939 tons in the first four months in 2024.

Russian butadiene production Jan-Apr 2024

Russian butadiene production increased from 167,817 tons in the first four months in 2023 to 205,365 tons in the same period in 2024.  The largest producers ZapSibNeftekhim and Nizhnekamskneftekhim both showed higher production, rising respectively from 75,017 tons to 104,112 tons and from 52,590 tons to 63,691 tons.   

Isoprene rubber to replace natural rubber

SIBUR has signed an agreement with Russian tyre manufacturer Cordiant 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.  Tyre manufacture in Russia is based on around 25% of natural rubber which is imported from Asia, from Thailand, Indonesia and Vietnam.  SIBUR aims to replace around 80% of natural rubber with isoprene rubber which it produces at Nizhnekamskneftekhim. 

Isoprene rubber is also produced in Russia by Togliattikaucuk and Sterlitamak Petrochemical Plant.  SIBUR claims in the past two years to have replaced most of the synthetic rubber grades where Russia was previously dependent on imports.

Russian Chinese rubber trade Jan-Apr 2024

Russian exports of synthetic rubber to China totalled $315.526 million in the period January to April 2024 against $211.285 million in the same period in 2023. 

By volume Russian shipments amounted to 200,444 tons in 2024 versus 144,899 tons in the same period in 2023.  By volume butyl rubber exports from Russia to China increased from 36,024 tons in January to April to 44,805 tons in the same period this year.  Butadiene rubber exports increased from 21,604 tons to 44,805 tons whilst halogenated butyl rubber exports recorded a significant increase, rising from 11,916 tons to 35,928 tons.  Isoprene rubber exports increased from 14,876 tons to 25,384 tons.

Russian methanol production Jan-Apr 2024

Russia produced 1.296 million tons of methanol in the first four months in 2024 against 1.313 million tons in the same period in 2023.  The largest producer Shchekinoazot decreased production from 432,627 tons to 402,721 tons.  The Volga region increased production from 528,580 tons to 557,520 tons, whilst the Siberian Federal District (including Gazprom Methanol and Angarsk Petrochemical) reduced production from 271,725 tons to 245,649 tons.   

Regarding the smaller producers Azot at Nevinnomyssk increased production from 28,506 tons to 32,675 tons which correlated with the increase in acetic acid production.  Other plants where methanol is consumed internally include Akron, Angarsk Petrochemical and Novatek.  Akron uses methanol for formaldehyde production, Angarsk Petrochemical uses methanol for MTBE and Novatek uses methanol for gas processing.

Russian methanol exports Jan-Apr 2024

Russian methanol exports amounted to 435,013 tons in January to April 2024 versus 594,867 tons in the same period in 2023. Shchekinoazot reduced exports from 246,603 tons to 167,011 tons in the first four months this year, whilst Metafrax Chemicals reduced shipments from 163,561 tons to 78,398 tons.   Tomet exported 56,017 tons versus 21,362 in January to April 2023.  Gazprom Methanol reduced exports in 2024 to 98,940 tons from 134,738 tons.    

Azot at Novomoskovsk increased exports from 28,184 tons in January to April last year to 31,733 tons, in both years shipped mostly through the Temyruk and Kavkaz ports to Turkey.   Due to the proximity to Crimea both Temyruk and Kavkaz ports suffered damage at the end of May from missiles and drones launched from Ukraine.  Another methanol tank at the Azov port near Rostov was struck by a drone on 18 June.  It is not clear if this methanol tank was intended for export. 

Exports to China amounted to 299,909 tons in the first four months in 2024 against 214,490 tons in the same period in 2023.  Volumes to Turkey dropped from 75,332 tons to 69,462 tons.

Although China has replaced Finland as Russia’s main export destination for methanol exports, most of the Russian methanol plants are located in the western parts of the country which means that the freight distances are much larger and costlier than to the EU markets.

Most of the exports to China are conducted through the port of Nakhodka-Vostochny, accounting for 96% of shipments in 2023.  The other route used by Russian producers is Zabaikalsk which is located on the border with China.  Tomet is using the Zabaikalsk route, which can save several thousand kilometres in rail costs, but this also depends on the location of the Chinese consumers.  In the first four months Tomet shipped 37,957 tons through Zabaikalsk with the remainder being shipped through Nakhodka-Vostochny. 

Regional distribution of Russian methanol imports into China fluctuates over a period of a few months.  In the first four months in 2024 the Zhejiang Province imported 75,905 tons of methanol from Russia, accounting for 26% of total imports, against 79,613 tons in the same period in 2023 which accounted for 42% of total imports.  The largest region for Russian imports this year has been Shanghai which took 110,586 tons and this accounted for 38% of total imports.  Shipments to the Guangdong Province and Beijing area were important last year but have used very little Russian methanol in 2024.

Overall, average prices paid by Chinese consumers in 2023 amounted to $273.2 per ton which producers acknowledged were not enough to cover rail costs and production.   Even with the mostly easterly of the Russian plants at Tomsk in Siberia freight costs to the Russian Far East ports raise questions about profitability.  As with many aspects of the rise in Sino-Russian trade in the past two years, China buys from Russia because of price advantage whilst Russia sells to China because it has limited alternatives.

Chinese prices paid for Russian methanol imports has only exceeded $300 per ton once since the start of 2023, and price levels below that threshold present challenges to all producers shipping product to China.  According to Chinese statistics imports of methanol from Russia totalled 286,440 tons in the first four months in 2024 against 189,026 tons in the same period in 2023, with costs rising from $57.635 million to $80,316 million.

Russian methanol domestic sales, Jan-Apr 2024