Grupa Azoty reduces production in March and April after difficult first quarter in 2023 - Issue 391 || PKN Orlen-petrochemical production Jan-Apr 2023 - Issue 391 || Central European styrene trade Jan-Apr 2023 - Issue 391 || Polish polyethylene production & trade Jan-Apr 2023 - Issue 391 || Polish polypropylene production & trade Jan-Apr 2023 - Issue 391 || Polish synthetic rubber trade, Jan-Apr 2023 - Issue 391 || Central European MDI trade Jan-Apr 2023 - Issue 391 || Central European methanol trade Jan-Apr 2023 - Issue 391 || Russian chemical industry-new terminals required to serve Chinese market - Issue 391 || Russian butadiene production Jan-Apr 2023 - Issue 391 || Russian plastics and polyethylene production Jan-Apr 2023 - Issue 391 || Russian polyethylene trade Jan-Apr 2023 - Issue 391 || PTA deliveries from China to Kaliningrad - Issue 391 || Russian methanol production Jan-Apr 2023 - Issue 391 || Russian methanol exports, Jan-Apr 2023 - Issue 391 || Methanol plant at Volgograd signs agreement with Chinese company - Issue 391 || Russian polyurethane raw materials 2023 - Issue 391 || Uzbek methanol island-Air Products - Issue 391 || Russian Methanol Production, exports and domestic sales 2023 - Issue 392 || Polish petrochemical production Jan-May 2023 - Issue 392 || Olefin 111 project outline - Issue 392 || Polimex Mostostal and Naftoremont-Naftobudowa-Olefin 111 project - Issue 392 || Hungarian propylene exports Jan-Apr 2023 - Issue 392 || Central European styrene trade Jan-May 2023 - Issue 392 || Czech petrochemical trade, Jan-May 2023 - Issue 392 || Polish rubber trade Jan-May 2023 - Issue 392 || Hungarian TDI-MDI exports Jan-Feb 2023 - Issue 392 || Russian propylene exports & sales Jan-May 2023 - Issue 392 || KPI polypropylene outage & exports - Issue 392 || Russian methanol producer operational balances 2023 - Issue 396 || Russian Methanol Exports October 2023 - Issue 396 || Polish Polyol Exports 2022-2023 - Issue 396 || Polish Polyol Imports 2022-2023 - Issue 396 || Central European isocyanate trade Jan-Sep 2023 - Issue 396 || Czech polyol imports Jan-Sep 2023 - Issue 396 || Polish polyol trade Jan-Sep 2023 - Issue 396 || Isocyanate/polyol imports from China into Russia - Issue 396 ||
 


CIREC News November

Central Europe

Regional chemical markets, production trade and prices

Latest crude supply news Central Europe

Czech Crude purchases (€ per ton) Jan-Aug 2023

Country

Vol (kilo tons)

€ per ton

Azerbaijan

1247.7

604.1

Kazakhstan

346.0

594.1

Russia

3135.8

407.6

US

181.5

596.1

Total

4911.4

550.5

Czech imports of Russian crude amounted to 4.911 million tons in the first eight months in 2023 of which Russia supplied 3.136 million tons and Azerbaijan 1.248 million tons.  Average prices amounted to €550.5 per ton, with prices from Russia dominating at €407.6 per ton.  The Czech Republic increased oil imports via the Druzhba pipeline to 65% of total purchases in the first eight months this year, up from 56% in 2022.  Partly this is attributed to the price cap that makes Russian crude cheaper than other sources.  However, it could be due to stockpiling crude in anticipation of possible disruptions to transit through Ukraine and also the difficulties in completely replacing Russian crude.

The Czech Republic has two primary sources of oil: the Druzhba pipeline from Russia and the IKL pipeline, which is connected to the TAL pipeline from Italy and carries oil through Germany.  Neighbouring Slovakia is as much as 70% dependent on Russian oil, while countries such as Poland and Germany have limited their Russian imports.  The Czech Republic is also taking steps to reduce its dependence, with a project to increase the capacity of the TAL pipeline from Italy expected to be completed in 2025.

Polish Imports of Crude Oil Jan-Jun 2023

Country

Vol (million tons)

€ per ton

Saudi Arabia

7.952

555.5

Lithuania

0.019

563.1

Russia

1.150

316.4

Nigeria

1.118

606.2

Norway

5.351

542.3

US

0.825

522.8

UK

0.706

599.5

Others

0.132

0.5

Total

17.253

534.7

Hungarian crude purchases Jan-Jul 2023

Country

Vol (ktons)

€ per ton

Azerbaijan

90.323

527.447

Croatia

266.660

568.909

Iraq

225.427

439.009

Kazakhstan

533.500

566.747

Russia

2476.959

352.521

Others

0.720

503.979

Total

3593.590

408.4

The Adria is seen the key alternative to the Druzhba for Hungary and Slovakia.  MOL is taking actions to manage the risk of possible crude oil supply disruption, including consideration of using alternative supply routes of sufficient capacity. The MOL Group moreover has access to state reserves which enables it to supply its markets in case of interruptions of the Druzhba pipeline.

Hungary’s average price for crude imports this year has amounted to €408.374 per ton, mainly helped by the price cap on Russian crude.  Purchases of crude from Russia in January to July amounted to 2.476 million tons from the total of 3.594 million tons, thus accounting for 69% of supply.  The Russian average price of €352.531 per ton compared against the next lowest price of €439.009 per ton from Iraq, although volumes from Iraq were small.  Volumes from Kazakhstan, delivered by the Druzhba, amounted to 533,500 tons in the first seven months at an average price of €566.747 per ton. 

Polish imports of crude oil Jan-Aug 2023

Poland imported 17.253 million tons in the first eight months in 2023 at an average price of €534.7 per ton.  Saudi Arabia supplied 7.952 million tons at an average price of €555.5 per ton followed by Norway which supplied 5.351 million tons at an average price of €542.3 per ton.   

As part of its diversification strategy, the Orlen Group is building its import portfolio based on oil supplies from the North Sea, West Africa, the Mediterranean, as well as the Persian and Mexican Gulfs.  By the end of 2023, Naftoport's crude oil transhipment through Gdansk are expected to exceed 36 million tons.  Not only does this provide oil for Polish refineries but also the Schwedt refinery in east Germany where utilisation is now close to 80%. 

 

Poland-petrochemical production Jan-Aug 2023

 

PKN Orlen Production (unit-kilo tons)

 Product

Jan-Aug 23

Jan-Aug 22

 Ethylene

246.8

317.7

 Propylene

214.6

294.8

 Butadiene

39.9

42.8

 Toluene

0.5

5.2

 Phenol

28.2

29.7

 Polyethylene

205.4

215.1

 PVC

140.3

203.0

 Polypropylene

183.4

233.9

PKN Orlen reduced ethylene production in the first eight months in 2023 to 246,800 tons from 317,700 tons in the same period in 2022.  Propylene production at Plock dropped from 294,800 tons to 214,600 tons.  Production of propylene is expected to increase in Poland this year, particularly in the fourth quarter, if the new Polimery Police plant starts without difficulties. Butadiene production at Plock dropped from 42,800 tons versus 39,900 tons in January to August 2023.

Olefiny 111-Plock

The construction cycle at Orlen’s Olefiny III complex is currently around halfway.  Most of the large dimensions have already been installed and from 2024 the installation will start for pipelines, automation and electrical equipment.  At its peak, around 13,000 personnel will be working on the construction of the Olefiny III complex.  The project being managed overall by a consortium of Hyundai Engineering Co. and Técnicas Reunidas, with many sub-contractors particularly in Poland.  

The heart of the complex includes a new steam cracker which will comprise capacities of 740,00 tpa of ethylene and 340,000 tpa of propylene.   The completion of the construction of Olefiny III is planned for the first quarter of 2027.

Central European propylene supply

Propylene spot prices in Central Europe remain under pressure from weak demand measured against supply availability.  Price trends in the third quarter have stabilised to an extent, after the significant declines in the first half of 2023 where contract prices fell by 25%.  Apart from an anomalous price spike in April the trends have been gradually downwards. 

Despite production constraints by some producers, the availability of propylene in Europe has been sufficient and overall appears to exceed demand.  Limited storage capacities at producers resulted in propylene being sold on the spot market at the end of the second quarter with discounts reaching up to 50% of the contract price.  Demand for propylene for derivatives remains low with limited signs of a market upturn in the next two quarters.

 

Polish propylene imports Jan-Aug 2023

 

Polish Propylene Imports (unit-kilo tons)

Country

Jan-Aug 23

Jan-Aug 22

Bulgaria

12.104

3.983

Czech Rep

10.996

2.851

Germany

38.065

42.506

Russia

0.000

21.625

Ukraine

0.000

17.018

Serbia

4.828

0.000

Netherlands

15.876

0.000

Others

2.586

3.918

Total

84.456

91.902

Av price € per ton

916.8

1336.3

Imports of propylene into Poland dropped in the first eight months in 2023 to 84,856 tons against 91,902 tons in the same period in 2022. 

Average prices dropped from €1336.3 per ton in January to August 2022 to €916.8 per tons in the first eight months in 2023.   Import volumes of propylene monomer are not expected to be affected significantly by the start of the 437,000 tpa plant by Grupa Azoty Polyolefins where most of the propylene from the PDH plant is intended to be used in the production of PP.  Any surplus is expected to be transferred to Azoty’s subsidiary ZAK at Kedzierzyn-Kozle for the production of oxo alcohols.    To compensate for the drop in imports from Russia and Ukraine (where propylene production was suspended at Karpatneftekhim following the Russian invasion), Poland started to receive deliveries from other regional countries in East Europe.  Germany supplied 38,065 tons in the first eight months followed by the Netherlands with 15,876 tons and Bulgaria with 12,104 tons.  Propylene from Bulgaria came from the Bourgas refinery.

 

Polish butadiene imports Jan-Aug 2023

 

Polish Butadiene Imports (unit-kilo tons)

Country

Jan-Aug 23

Jan-Aug 22

Austria

18.788

23.146

Germany

11.178

16.491

Hungary

15.961

24.146

Others

2.804

2.896

Total

48.731

66.679

Av price € per ton

908.6

1202.6

Poland imported 48,731 tons of butadiene monomer in the first eight months in 2023, versus 66,679 tons in the same period in 2022.  Imports from Hungary fell from 24,146 tons last year to 15,961 tons in January to August 2023, whilst shipments from Austria fell from 23,146 tons to 18,363 tons.  Average butadiene prices dropped from €1202.6 per ton in January to August last year to €908.6 per ton.   

Hungarian propylene & butadiene imports Jan-Jul 2023

Hungarian Propylene Exports (unit-kilo tons)

Country

Jan-Jul 23

Jan-Jul 22

Germany

0.000

6.369

Poland

1.019

3.936

Slovakia

50.411

52.337

Total

51.430

62.842

Av price € per ton

1113.5

1348.5

Hungarian Butadiene Exports (unit-kilo tons)

Country

Jan-Jul 23

Jan-Jul 22

Czech Republic

11.900

4.088

Germany

1.995

5.035

Poland

14.913

15.099

Total

28.808

24.222

Av price € per ton

876.0

1307.1

Hungarian propylene exports amounted to 51,430 tons in the first seven months this year, most of which went to Slovakia at a price of €1348.5 per ton.  Propylene production by Slovnaft is not sufficient to maintain high utilisation rates for polypropylene and additional supplies need to be purchased.  Slovnaft in Slovakia is currently upgrading its steam cracker unit which should increase the capacity for propylene production. 

Czech Petrochemical Imports (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

Ethylene

25.918

16.011

Propylene

31.434

26.531

Butadiene

49.073

48.328

Hungarian butadiene exports rose in the first seven months to 28,808 tons versus 24,222 tons in the same period in 2022.  Export prices dropped from €1307.1 per ton in the first seven months last year to €876.0 per ton.  

Czech monomer trade, Jan-Aug 2023

Czech Petrochemical Exports (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

Ethylene

7.920

9.515

Propylene

14.971

0.027

Butadiene

0.403

1.100

Propylene imports into the Czech Republic increased from 26,531 tons in January to August 2022 to 31,434 tons in the same period in 2023.  Germany supplied 25,696 tons in the first eight months, up from 14,089 tons.  Other suppliers included Bulgaria from which the Czech Republic purchased 3,742 tons and Romania where volumes amounted to 1,048 tons. 

Polish Average Chemical Prices (€ per ton)

Product

Jan-Aug 23

Jan-Aug 22

Propylene

916.8

1336.3

Butadiene

908.6

1202.6

Toluene

977.6

1049.6

Styrene

1251.2

1593.9

Ethylbenzene

1048.3

1309.5

Ethylene Glycol

624.9

893.4

Phenol

1324.7

1608.8

Average prices for Czech propylene imports dropped from €1415.0 per ton in the first eight months in 2022 to €872.3 per ton in 2023.   Ethylene exports from the Czech Republic amounted to 7,920 tons in the first eight months in 2023 against 9,515 tons in the same period last year, whilst ethylene imports rose from 16,011 tons to 25,918 tons. 

Germany supplied 25,694 tons of ethylene to Czech Republic in the first eight months in 2023 at a cost of €23.789 million.  This compares against 15,897 tons in the same period in 2022. 

Czech imports of butadiene in the first eight months this year increased from 48,328 tons to 49,073 tons, supplementing butadiene production at Kralupy.  Germany supplied 36,979 tons for €32.431 million, followed by Hungary which supplied 11,857 tons for €10.372 million.

 

Central European styrene trade Jan-Aug 2023

 

Polish Styrene Imports (unit-kilo tons)

Country

Jan-Aug 23

Jan-Aug 22

Belgium

4.193

9.436

Czech Republic

5.327

4.040

Finland

0.513

0.763

Netherlands

24.225

42.993

Germany

9.335

13.759

Others

3.468

1.653

Total

47.060

72.643

Av price € per ton

1251.2

1593.9

Poland imported 47,060 tons of styrene in the first eight months in 2023 versus 72,643 tons in the same period in 2022.  Prices for styrene monomer and ethylbenzene both tended to drop in 2023 in line with lower energy and feedstock costs. 

Czech Styrene Imports (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

Belgium

0.771

1.475

Germany

8.932

0.004

Netherlands

12.706

7.542

Poland

0.000

1.188

Others

3.220

0.173

Total

25.628

10.381

Av price per ton

1056.3

1677.7

The Netherlands reduced styrene shipments to Poland from 42,993 tons to 24,255 tons whilst imports from Germany dropped from 13,759 tons to 9,335 tons.  Cost prices averaged €1251.2 per ton in January to August 2023 against €1593.9 per ton in the same period in 2022.  The decline in styrene prices reflects the same trend in import prices for the mainstream chemical raw materials into Poland over the course of 2023.   

Styrene imports into the Czech Republic amounted to 25,628 tons in the first eight months in 2023, rising from 10,381 tons in January to August 2022.  Costs averaged €1056.3 per ton in January to August 2023 against €1677.7 per ton in the same period in 2022. 

Hungarian styrene imports (unit-kilo tons)

Country

Jan-Jul 23

Jan-Jul 22

Germany

0.627

2.082

Italy

39.741

49.878

Netherlands

2.790

2.017

Others

0.472

0.063

Total

43.630

53.713

Av price € per ton

1418.9

1652.7

Hungarian styrene imports amounted to 43,630 tons in the first seven months in 2023 against 53,713 tons in the same period in 2022, with average prices dropping from €1652.7 per ton to €1418.9 per ton in January to August 2023. 

Italy supplied 41,361 tons in January to July 2022 which fell to 29,986 tons in the same period this year.  Styrene in Hungary is used for the production of polystyrene by Versalis at the Szazhalombatta plant. 

HIP-Petrohemija maintenance shutdown

HIP-Petrohemija started planned maintenance on 15 September which will is intended to be completed at the end of October.  The most important activities during the overhaul have been concentrated on the second phase of reinstrumentation at the Ethylene plant.  HIP-Petrohemija exported 58,087 tons of polyethylene in the first seven months in 2023 against 75,463 tons in the same period in 2022.  

From 9 June NIS increased its stake in Petrohemija to 90%, while the state of Serbia retains a stake of 10%.  NIS is planning the construction of a polypropylene production plant at Petrohemija with a capacity of at least 140,000 tpa, to be constructed within a period of six years.

Poland-polyethylene market Jan-Aug 2023

Polish PE Supply/Demand Balance

(unit-kilo tons)

 

Jan-Aug 23

Jan-Aug 22

Production

205.4

215.1

Exports

199.3

234.4

Imports

802.2

892.5

Market Balance

808.3

873.1

Polyolefin trade into and out of Poland experienced declines in the first eight months in 2023, with nearly all grades of polyethylene and polypropylene affected. 

Based on production and trade, polyethylene consumption amounted to 808,300 tons in the first eight months in 2023 against 873,100 tons in January to August 2022.  Production, exports and imports have all been lower this year.  Poland’s consumption of polyethylene amounted to 1.291 million tons in 2022 versus 1.350 million tons in 2021.

 

Polish polyethylene production & trade Jan-Aug 2023

 

Polish PE imports (unit-kilo tons)

Type

Jan-Aug 23

Jan-Aug 22

LDPE

217.441

237.402

LLDPE

134.189

169.198

HDPE

277.503

303.690

EVA

9.647

11.910

EAO

130.043

129.750

Other

33.394

40.508

Total

802.217

892.4

Av price € per ton

1599.7

1849.4

PKN Orlen and Basell Orlen Polyolefins (BOP) produced a combined total of 201,300 tons of polyethylene at Plock in the first eight months in 2023 against 215,300 tons in the same period last year. 

Polyethylene imports into Poland totalled 802,217 tons in January to August 2023 versus 892,458 tons in the same period in 2022, with average prices dropping from €1849.4 per ton to €1599.7 per ton this year. 

Polish PE Exports (unit-kilo tons)

Type

Jan-Aug 23

Jan-Aug 22

LDPE

33.728

41.117

LLDPE

11.743

14.065

HDPE

138.917

160.016

EVA

2.936

1.877

EAO

8.219

14.202

Other

3.765

3.138

Total

199.309

234.414

Av price € per ton

1356.0

1695.1

HDPE imports into Poland dropped from 303,690 tons to 277,503 tons in January to August 2023 whilst LDPE imports dropped from 237,402 tons to 217,441 tons.  LLDPE imports declined from 169,198 tons to 134,292 tons.  Most of the LLDPE imports were sourced mostly from West Europe, including France, the Netherlands and Germany. 

Polyethylene exports from Poland have also dropped this year.  Exports decreased from 234,414 tons in the first eight months in 2022 to 199,309 tons in the same period in 2022, with average prices dropping from €1695.1 to €1356.0.  HDPE was Poland’s largest export grade amounting to 138,917 tons in the first eight months against 160,016 tons in January to August 2022.

 

HIP-Petrohemija polymer exports Jan-Jul 2023

 

Serbian Chemical Exports (unit-kilo tons)

Product

Jan-Jul 23

Jan-Jul 22

Polyethylene

58.087

75.463

Polypropylene

8.891

9.869

SBR

9.788

11.488

In the first seven months this year export revenues from polyethylene for Petrohemija dropped to $72.6 million against $132.4 million in the same period in 2022.  This was due to the combination of lower polyethylene prices this year and also lower export activity, with shipments dropping from 75,463 tons in January to July 2022 to 58,087 tons.

Polish polypropylene production & trade Jan-Jun 2023

Polish PP Imports (unit-kilo tons)

Type

Jan-Aug 23

Jan-Aug 22

PP homo

360.883

415.339

Polyisobutylene

1.726

2.789

Propylene copolymers

190.168

202.028

Other

13.964

13.701

Total

566.741

633.857

Av price € per ton

1500.5

1864.0

Polypropylene production at Plock dropped from 233,900 tons in January to August 2022 to 183,400 tons in the first eight months this year.  Overall consumption of polypropylene in Poland amounted to 443,700 tons in the first eight months against 556,500 tons in the same period in 2022. 

Imports of polypropylene into Poland dropped from 633,857 tons in the first eight months in 2022 versus 566,741 tons in the same period in 2023, with average prices dropping from €1864.0 to €1500.5 per ton.  Homo grade imports dropped from 415,319 tons in the first eight months last year to 360,883 tons. 

Polish PP Exports (unit-kilo tons)

Type

Jan-Aug 23

Jan-Aug 22

PP homo

94.848

137.577

Polyisobutylene

0.462

0.154

Propylene copolymers

48.461

58.455

Other

3.813

2.053

Total

147.585

198.238

Av price € per ton

1454.7

1794.4

Copolymer imports into Poland fell from 202,028 tons in the first eight months in 2022 to 190,168 tons in the same period this year, with costs dropping to €301.195 million against €403.599 million in the same period in 2022.  Germany was the largest supplier of propylene copolymers to the Polish market in 2022 transporting 82,907 tons for €156.748 million.  In the first eight months in 2023 Germany supplied 56,216 tons of copolymers to the Polish market for €90.791 million.  Imports are expected to fall as the new Polimery Police plant starts to take effect in the domestic market.

Polish exports of polypropylene dropped from 198,238 tons in the first eight months in 2022 to 147,585 tons in the same period in 2023.  Average prices for exports amounted to €1454.7 per ton in the first eight months which was down from €1794.4 per ton last year.  

 

The largest destination for Polish homo grade polypropylene in the first eight months in 2023 was Germany which took 24,172 tons for €32.417 million followed by the Czech Republic with 20,457 tons for €24.533 million.  Other important markets in Europe included Italy, taking 8,864 tons in the first eight months in 2023 for €12.685 million followed by Slovakia with 9,180 tons for €13.060 million.  

 

Czech Polypropylene Exports (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

PP

144.441

162.372

Propylene Copolymers

31.526

33.627

Other

3.973

2.212

Total

179.940

198.212

Av price € per ton

1530.7

1781.6

Polish polypropylene trade is expected to undergo some major changes in the next few months when the new Polimery Police plant starts to operate on a commercial basis.  The plant is currently going through its start-up procedure.

Czech polyethylene trade Jan-Aug 2023

Czech Polyethylene Exports (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

LDPE

16.921

21.717

LLDPE

2.280

2.386

HDPE

245.707

236.756

EVA

2.202

2.175

Other

16.952

8.156

Total

284.062

271.191

Av price € per ton

1293.3

1715.0

Czech Polyethylene Imports (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

LDPE

70.131

83.490

LLDPE

16.358

14.739

HDPE

78.808

82.216

EVA

7.237

6.941

Other

29.178

29.157

Total

201.713

216.542

Av price € per ton

1608.1

1979.2

Czech exports of polyethylene amounted to 284,062 tons in the first eight months in 2023 from 271,191 tons in the corresponding period in 2022, with average prices falling from €1715.0 per ton to €1293.3.  HDPE represents the largest category of Czech polyethylene rising from 236,707 tons in January to August 2022 to 245,756 tons. 

Czech Polypropylene Imports (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

PP

198.635

201.758

Propylene Copolymers

143.443

129.254

Other

9.679

11.964

Total

351.757

342.976

Av price € per ton

1616.0

1945.7

Imports of polyethylene into the Czech Republic dropped from 216,542 tons in the first eight months in 2022 to 201,713 tons in 2023.  Average prices dropped from €1979.2 per ton to €1608.1 per ton.  HDPE imports dropped from 82,216 tons to 78,078 tons, whilst LDPE imports decreased from 83,490 tons to 70,131 tons. 

Polypropylene exports from Orlen Unipetrol dropped in the first eight months from 198,212 tons in 2022 to 179,940 tons in 2023.  Prices dropped on average from €1781.6 per ton to €1530.7. The largest market for Czech polypropylene exports in the first eight months in 2023 was Poland followed by Germany.   

Hungarian polyethylene Imports (unit-kilo tons)

Product

Jan-Jul 23

Jan-Jul 22

LLDPE

14.090

13.588

LDPE

26.765

34.262

HDPE

51.477

61.180

EAO

5.560

7.042

EVA

2.307

3.722

Other

27.090

13.641

Total

127.290

133.435

Av price € per ton

1551.8

1912.1

Polypropylene imports into the Czech Republic amounted to 351,757 tons in the first eight months this year against 342,976 tons in the same period in 2023, with average prices falling from €1945.7 per ton to €1616.0 per ton.  Copolymer imports increased from 129,254 tons to 143,443 tons whilst homo polymer imports dropped from 201,758 tons to 198,635 tons.  Total costs for polypropylene imports totalled €285.491 in January to August 2023 against €338.539 million in the same period in 2022.

Copolymer imports were sourced mostly from Europe, with Germany supplying 30,233 tons in the first eight months for €57.723 million.  The largest non-European supplier was South Korea from where the Czech Republic imported 16,748 tons in January to August this year for €24.680 million. 

 

Hungarian polyethylene trade Jan to Jul 2023

 

Hungarian polyethylene exports (unit-kilo tons)

Product

Jan-Jul 23

Jan-Jul 22

LLDPE

3.752

3.191

LDPE

54.184

49.394

HDPE

134.720

131.465

EAO

0.000

0.278

EVA

0.000

0.078

Other

7.404

14.926

Total

200.060

199.330

Av price € per ton

1330.7

1631.6

Hungarian imports of polyethylene dropped from 133,435 tons in January to July 2022 to 127,290 tons in the same period this year.  LDPE imports dropped from 34,262 tons to 26,785 tons whilst HDPE dropped from 61,180 tons to 51,477 tons in January to July this year.

Import costs dropped from €255.137 million for polyethylene in January to July 2022 to €197.529 million in the first seven months this year, with average prices dropping from €1912.1 per ton to €1551.8 per ton.  Hungarian export prices dropped from €1631.6 per ton in January to July 2022 to €1330.7 per ton in 2023.  Exports revenues dropped from €327.705 million to €255.670 million. 

Export volumes of polyethylene from Hungary amounted to 200,060 tons in the first seven months this year versus 199,330 tons in January to July 2022.  HDPE exports increased from 131,465 tons to 134,720 tons and LDPE increased from 49,394 tons to 54,184 tons.  The rise in polyethylene exports this year has taken place despite the slight decline in production by MOL at Tiszaujvaros. 

 

Hungarian polypropylene trade Jan-Jul 2023

 

Hungarian Polypropylene Imports (unit-kilo tons)

Product

Jan-Jul 23

Jan-Jul 22

PP homo

67.621

73.914

Propylene copolymers

30.221

38.090

Others

14.319

18.615

Total

112.161

130.619

Av price € per ton

1619.9

2141.4

Hungarian polypropylene exports (unit-kilo tons)

Product

Jan-Jul 23

Jan-Jul 22

PP homo

74.891

69.432

Propylene copolymers

53.374

57.382

Others

9.561

12.641

Total

137.826

139.454

Av price € per ton

1381.5

1576.5

Propylene copolymer imports into Hungary amounted to 30,221 tons in January to July this year versus 38,090 tons in the same period in 2022, whilst polypropylene homo grade inward shipments decreased from 73,914 tons to 67,621 tons.  Overall imports of polypropylene dropped from 130,619 tons in the first seven months last year to 112,161 tons. 

 

Due to softening prices, import costs dropped from €279.705 million to €181.685 million in January to July 2022.  Hungarian polypropylene exports in the first seven months amounted to 102,745 tons against 105,792 tons in the same period in 2022.  Export revenues amounted to €144.670 million against €186.774 million last year.  

 

By volume Hungarian homo grade polypropylene exports rose to 41,560 tons from 69,432 tons.  Copolymer exports dropped from 57,382 tons to 53,374 tons.  Overall average prices dropped from €1576.5 per ton to €1381.5.

Hungarian synthetic rubber trade Jan to May 2023

Hungarian synthetic rubber imports (unit-kilo tons)

Product

Jan-Jul 23

Jan-Jul 22

Butadiene Rubber

30.108

26.576

HBR

4.580

10.446

SBR

29.659

16.213

Other

16.113

28.045

Total

80.459

81.280

Hungarian synthetic rubber imports (€ million)

Product

Jan-Jul 23

Jan-Jul 22

Butadiene Rubber

55.337

53.690

HBR

11.064

28.869

SBR

70.381

34.506

Other

45.618

69.931

Total

182.400

186.997

Av price € per ton

2267.0

2300.7

Hungarian imports of synthetic rubber amounted to 80,459 tons in the first seven months this year for total costs of €182.400 million, against 81,280 tons in January to July 2022 for total costs of €126.707 million.  Average costs per ton rose over the seven-month period to €2267.0 against €2300.7 per ton last year. 

Exports of HBR largely balance out imports, reflecting the lack of consumption in Hungary.  Import sources of HBRs were dominated by Russia which supplied 2,822 tons in the first seven months.  However, shipments were not made in July when Poland was the only supplier. 

Although the sanctions on Russian HBRs to the EU were imposed in July last year the rules were amended in February 2023 when earlier sanctions on synthetic rubber were extended to June 2024.  Nizhnekamskneftekhim is the sole Russian producer of HBR and appears to have shifted its sales strategy away from Europe, knowing that there is a key deadline coming up in less than 12 months.

 

Hungarian butadiene rubber imports Jan-Jul 2023

 

Hungarian butadiene rubber Imports (unit-kilo tons)

Country

Jan-Jul 23

Jan-Jul 22

Indonesia

12.441

0.098

Russia

2.318

10.901

Total

30.108

26.595

Av price € per ton

1837.9

2019.4

Hungary imported 30,108 tons of butadiene rubber in January to July this year against 26,595 tons in January to July 2022.  The main change to market sources in recent months has come from Indonesia from where Hungary imported 12,441 tons in the first seven months.

Imports of butadiene rubber from Russia amounted to 2,318 tons in January to July this year versus 10,901 tons in the same period in 2022.  EU sanctions on butadiene rubber trade with Russia, introduced in July last year, have since been loosened under the pressure of European tyre manufacturers but this has not led to much of a revival of purchases from Russia.  No shipments were made in July.

Synthos production at Oswiecim Jan-Aug 2023

Synthos Production in Poland (unit-kilo tons)

 Product

Jan-Aug 23

Jan-Aug 22

 Polystyrene

48.1

46.5

 EPS

62.8

67.6

 Synthetic Rubber

126.8

186.4

Synthos reduced the production of synthetic rubber in Poland from 186,400 tons in the first eight months to 126,800 tons in the same period in 2023, the drop attributed to lower demand. 

Polish Tyre Production (unit-kilo tons)

 Category

Jan-Aug 23

Jan-Aug 22

Car Tyres

183.0

198.9

Bus & truck Tyres

110.0

146.7

Tractor

5.3

8.4

Agricultural tyres

10.5

15.2

Total

308.8

369.2

In the styrene division Synthos increased general purpose polystyrene production from 46,500 tons to 48,100 tons and reduced EPS from 67,600 tons to 62,800 tons. 

Polish rubber consumption Jan-Aug 2023

Domestic market sales of rubber in Poland dropped in the first eight months in 2023, mainly from lower consumption in the tyre sector.  Total consumption of synthetic and natural rubber used in the tyre industry dropped from 369,200 tons in the first eight months in 2022 to 308,800 tons in the same period this year. 

Synthos Jan-Jun 2023

In the first half of the 2023 year the Synthos Group decided to close one of the production lines at Kralupy dedicated to ESBR butadiene–styrene rubber production, for which significant impairment was booked in 2022.  The decision is a direct result of overcapacity in ESBR commodity rubber product and high production costs in Europe due to unpredictable costs of utilities. In addition, the Group has not fully used its ESBR production capacity, reducing its production by approximately 30%, which corresponds to approximately 100,000 tpa.  The liquidation process at Kralupy is scheduled to be completed by the end of March 2025 and was down to the fact that Synthos was no longer able to compete on non-European markets.  More than half of the production was sold in the US and Asia where competitive prices made it very difficult to sell at profitable levels. 

Synthos rubber division

The rubber and tyre materials segment is one of the core business segments for Synthos. Approximately 80% of the volume of products sold by this segment is attributable to large tyre industry participants, including Michelin, Continental, Bridgestone, Goodyear and Pirelli. The remaining 20% consists of the production of technical rubber goods, soles for footwear, flexible cables and transmission belts.  For the half year in 2023, the rubber and tyre division generated revenues from sales of zl 2.638 million against zl 3.454 million in the first half in 2022. 

 

Polish synthetic rubber trade, Jan-Aug 2023

Polish Synthetic Rubber Imports (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

ESBR

15.127

9.211

Block SBR

24.186

27.063

S-SBR

14.745

9.031

Butadiene Rubber

37.579

39.018

Butyl Rubber

3.287

2.475

HBR

6.787

10.917

NBR

4.416

10.325

Isoprene Rubber

9.189

23.586

EPDM

25.278

31.575

Others

37.031

30.958

Total

177.626

194.159

Av price € per ton

2206.2

2608.9

Average prices for synthetic rubber imports into Poland dropped in the first eight months to €2206.2 per ton against €2608.9 per ton.  Imports of synthetic rubber into Poland by volume amounted to 177,626 tons in January to August 2023 against 194,159 tons in the same period in 2022. 

Butadiene rubber imports dropped from 39,018 tons to 37,579 tons and EPDM imports dropped from 31,575 tons to 25,278 tons.  Synthetic rubber exports from Poland totalled 175,753 tons in the period January to August 2023 versus 206,117 tons in the same period last year.  SBR formed the largest share of exports. 

Czech synthetic rubber market Jan-Aug 2023

Prices for synthetic rubber exports and imports of both synthetic and natural rubber have stabilised since the start of 2023.  Prices for Czech exports of synthetic rubber dropped from €2059.4 per ton to €1886.6 per ton over the period January to August 2023, whilst import prices dropped from €2254.4 per ton to €2212.3 per ton.  Natural rubber prices dropped from €1971.1 per ton in January to August 2022 to €1704.7 this year.

Czech Rubber Trade Prices

(€ per ton)

 

Jan-Aug 23

Jan-Aug 22

Export

1886.6

2059.4

Import

2212.3

2254.4

Natural

1704.7

1971.1

Exports of synthetic rubber into Czech Republic amounted to 102,264 tons in the period January to August 2023 against 133,418 tons in the same period last year.  Imports of synthetic rubber amounted to 84,006 tons in the first eight months in 2023 against 109,405 tons in January to August 2022, with natural rubber imports declining from 55,114 tons to 54,035 tons.   

Czech Exports of EBSR

 

Jan-Aug 23

Jan-Aug 22

Kilo tons

37.517

74.424

€ million

56.407

157.154

Average price

1702.6

2112.5

Imports of synthetic rubber from Russia into the Czech Republic dropped from 20,012 tons in the first eight months in 2022 (for €40.125 million) to 4,394 tons (for €7.547 million).   The largest category of imports from Russia this year was for SBR grades where volumes amounted to 2,057 tons.  Butadiene rubber imports from Russia amounted to 1,474 tons against 8,908 tons in the same period in 2022, whilst imports of halogenated butyl rubber fell to 184 tons from 3,571 tons in January to August 2022. 

Czech exports of ESBR dropped in the first eight months this year to 37,517 tons against 74,424 tons in the same period in 2022.  The plant was closed in April and will not produce in future.  Prices per ton for ESBR dropped from €2112.5 to €1702.6 but according to Synthos production costs have risen to levels where the Kralupy plant is not able to be profitable.   

 

Czech butadiene rubber trade Jan-Aug 2023

 

Czech Trade in Butadiene Rubber (unit-kilo tons)

 

Jan-Aug 23

Jan-Aug 22

Exports

71.362

74.424

Imports

16.418

21.038

 

   

Czech Trade in Butadiene Rubber (€ million)

 

Jan-Aug 23

Jan-Aug 22

Exports

126.074

157.154

Imports

38.842

48.947

Czech exports of butadiene rubber comprised 71,362 tons in the first eight months in 2023 against 74,424 tons in the same period in 2022.  Revenues from butadiene exports dropped from €157.154 million to €126.074 million.  Imports of butadiene rubber amounted to 16,418 tons in the first eight months which was down from 21,038 tons in the same period in 2022.

The largest customer for Czech butadiene rubber this year has been Poland, taking 9,549 tons against 9,001 tons in January to August last year followed by South Korea which increased from 3,687 tons to 9,024 tons.  Exports to India fell from 15,380 tons to 8,222 tons.

Polish Imports of Aromatics (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

Bisphenol A

12.488

10.315

Ethylbenzene

75.889

74.323

Paraxylene

0.000

34.150

Phenol

51.810

75.784

Phthalic Anhydride

20.705

22.688

PTA

4.089

1.298

Styrene

43.084

69.364

TDI

37.825

50.251

Toluene

15.745

16.119

Polish aromatics trade Jan-Aug 2023

Phenol imports into Poland amounted to 51,810 tons in the first eight months in 2023 against 75,784 tons in the same period last year.  Supplies from Russia, which had previously been a major supplier to the Polish market, stopped in August last year following sanctions imposed by the EU.   Germany was the largest supplier of phenol to Poland in the first eight months, shipping 37,194 tons for €47.103 million.  Other suppliers included Finland which delivered 9,329 tons in January to August this year for €11.863 million and Spain which supplied 2,880 tons for €3.462 million. 

Polish Exports of Benzene (unit-kilo tons)

Country

Jan-Aug 23

Jan-Aug 22

Czech Republic

12.006

35.697

Germany

73.252

71.526

Others

17.231

9.844

Total

102.490

117.067

Av €/ton

847.3

1164.9

In other aromatic product areas, styrene imports into Poland amounted to 43,084 tons in the period January to August 2023 versus 69,364 tons in the same period in 2022 whilst ethylbenzene imports rose from 74,323 tons to 75,889 tons.  Nearly all of the ethylbenzene imports come from the Synthos plant at Kralupy Czech Republic, which are delivered to the Oswiecim plant.  In other aromatic product areas paraxylene imports into Poland were not required by Poland in the first eight months against imports of 34,150 tons in the same period in 2022. 

Poland exported 102,490 tons of benzene in the first eight months which was down from 117,067 tons last year.  Average prices dropped from €1164.9 per ton to €847.3.  Germany was the largest destination for Polish benzene exports, taking 73,252 tons against 71,526 tons in the same period in 2022.  Exports of benzene from Poland to the Czech Republic dropped from 35,697 tons in January to August last year to 12,006 tons.  

Polish PTA sales  and production Jan-Aug 2023

In the first eight months in 2023, European contract prices of PTA fell by 17% against the same period in 2022.  The average contract price went down 8% in the second quarter against the first quarter.   The decline was driven mainly by lower prices of paraxylene (down by almost 11%) and by the demand and supply situation.

Demand for PTA derivatives, such as polyester fibres, as well as demand from plasticizer producers, remained exceedingly low in both quarters. Towards the end of the second quarter of 2023, the demand for PET bottles increased as temperatures in Europe rose. Nonetheless, the first half of the year saw Europe experiencing low PTA production, aligned with market demand.

European producers additionally had to contend with imports from Asia. At the close of the second quarter, the price difference between products of European and Asian origin narrowed, improving both sentiment and the prospects of successfully placing the product on the European market.

Polish Exports of PTA (unit-kilo tons)

Country

Jan-Aug 23

Jan-Aug 22

Belarus

1.275

4.409

Belgium

0.615

0.000

Germany

122.941

233.875

Lithuania

1.618

28.658

Switzerland

6.626

5.106

Turkey

6.660

5.060

Others

13.833

2.804

Total

153.567

279.913

Av Price € per ton

852.0

991.6

Lower PTA production at Wloclawek this year impacted on exports shipments from Poland, falling from 279,913 tons in the first eight months in 2022 to 153,567 tons.  Germany reduced inward shipments of PTA from Wloclawek from 233,875 tons to 122,941 tons, whilst shipments to Lithuania fell from 28,658 tons to 1,618 tons.  PTA prices dropped this year to €852.0 per ton in the first eight months against €991.6 per ton last year. 

Central European caprolactam production and trade

The European market has exhibited weak demand for both caprolactam and PA6 this year, and despite lower energy costs it has been difficult for Azoty to produce at full capacity.  The average European contract price of liquid caprolactam fell by 20% in the first quarter and 3% in the second quarter.  Imports of cheaper PA6 chain products, especially from Asia, further eroded demand for PA6 and caprolactam.

Spolana Caprolactam Exports (unit-kilo tons)

Country

Jan-Aug 23

Jan-Aug 22

Belgium

1.065

4.735

Germany

0.309

5.631

Italy

8.380

9.961

Slovenia

3.019

3.043

Switzerland

1.423

1.841

Others

0.370

0.262

Total

14.566

25.276

Av Price € per ton

1709.3

2623.6

The European PA6 application sectors have been affected by a weak economic environment, as well as shifts in consumer behaviour and purchasing strategies.   Imports of finished products from other regions have also increased.  One key factor influencing the European PA6 market was the aggressive pricing strategy adopted by Asian producers, who were seeking avenues to offload their products amidst sluggish domestic demand.  The prices of polymers imported from China during the first half of 2023 were frequently below the production costs incurred by European producers.  Costs of benzene and phenol, natural gas, energy and CO2 emissions played a pivotal role in determining variable production costs.

Average contract prices of polyamide 6 went down 22% in the first half in 2023, including a 12% fall in the second quarter.   

Caprolactam production in Poland dropped from 107,000 tons in the first eight months of 2022 to 58,900 tons this year.  Production has been in decline since the middle of 2022, with frequent stoppages undertaken. 

Caprolactam exports from the Czech Republic fell in the first eight months to 14,566 tons against 25,276 tons in the same period in 2022.  Average prices dropped from €2623.6 per ton to €1709.3 per ton. 

 

Polyamide imports into the Czech Republic fell from 61,189 tons in the first eight months in 2022, for €255.297 million, to 59,487 tons for €258.332 million in 2023.  Despite weaker consumption in Europe polyamide prices have been higher this year than in 2022 due to supply/demand factors. 

 

Czech aromatic trade Jan-Aug 2023

Czech Styrene Trade (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

Exports

7.938

2.640

Imports

24.673

12.286

Czech exports of ethylbenzene amounted to 85,798 tons in the first eight months versus 68,536 tons in the same period in 2022, whilst styrene exports rose from 2,640 tons to 7,938 tons.  Styrene imports are still required in the Czech Republic, rising from 12,286 tons to 24,673 tons. 

Czech Benzene Trade (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

Exports

15.197

29.186

Imports

19.366

52.999

Benzene exports from the Czech Republic in the first eight months in 2023 amounted to 15,197 tons against 29,186 tons in January to August 2022, whilst imports of benzene dropped to 19,336 tons from 52,999 tons. 

Unipetrol operates a benzene plant at Litvinov with a capacity of 250,000 tpa, whilst benzene is also produced in the Czech Republic by Deza at Valasske Mezirici.  Deza also owns Petrochemia at Blachownia at Kedzierzyn Kozle and possesses a combined capacity of 160,000 tpa for benzene and 25,000 tpa for toluene.  Exports of toluene from the Czech Republic amounted to 7,360 tons in the first eight months this year. 

Czech Bisphenol A Imports (unit-kilo tons)

 

Jan-Aug 23

Jan-Aug 22

Total

18.535

22.157

Av € per ton

1446.4

2304.7

Czech imports of Bisphenol A amounted to 18,535 tons in the first eight months in 2023 against 22,157 tons in the same period in 2022, with average prices dropping from €2304.7 per ton to €1446.4.  The leading supplier was South Korea which shipped 7,958 tons in the first eight months this year.

 

Polish organic chemical trade Jan-Aug 2023

 

Polish Organic Chemical Trade

Exports

Jan-Aug 23

Jan-Aug 22

Value (€ million)

985.3

1,596.6

Vol (kilo tons)

800.0

1,158.5

Imports

Jan-Aug 23

Jan-Aug 22

Value (€ million)

2,330.7

3,518.6

Vol (kilo tons)

1,698.3

2,081.6

Values and volumes for Polish trade in organic chemicals fell for both exports and imports in the first eight months, as recessionary trends took effect.  

Polish solvent exports, Jan-Aug 2023

Acetone exports in the first eight months this year amounted to 9,251 tons against 11,819 tons in January to August 2022. N-butyl acetate exports fell from 9,646 tons in January to August 2022 to 5,798 tons in the same period in 2023.  Germany was the largest destination for Polish butyl acetate exports last year, amounting to 8,999 tons followed by Italy with 3,763 tons. 

Monochloroacetic acid exports from Poland have been resumed this year after investment and totalled 24,188 tons in the first eight months this year.  The plant is part of the PCC Group, located at Brzeg Dolny with a capacity of 42,000 tpa. 

Import costs for organic chemicals into Poland dropped from €3.519 billion in the first eight months in 2022 to €2.331 billion in the same period in 2022, whilst export revenues dropped from €1.597 billion to €985.3 million.  Volumes for exports dropped from 1.159 million tons to 985,300 tons whilst imports fell from 2.082 million tons to 1.698 million tons. 

Poland still needs to import ethylene oxide to support ethoxylate production at Brzeg Dolny, but has changed its main supplier from Russia to Germany in the past eighteen months.  Ethylene glycol was one of the few products showing an increase in imports, rising in the first eight months from 35,293 tons in the first eight months last year to 69,743 tons in the same period in 2023. 

Belgium was the main supplier, providing 58,292 tons of ethylene glycol for €34.992 million.  Poland exported 14,686 tons of ethylene glycol in the first eight months this year.  Diethylene glycol imports amounted to 17,479 tons in the first eight months versus 18,133 tons. 

Methanol imports into Poland dropped from 629,681 tons in the first eight months in 2022 to 401,321 tons in the same period in 2023, with volumes from Russia constrained by sanctions.   No further methanol imports from Russia are now legally possible into Poland, with the full sanctions taking effect from 18 June.   The impact is probably one of higher costs on consumers, but markets are being subject to related economic factors from the war in Ukraine.

Polish Organic Chemical Imports (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

Acetic Acid

23.064

30.224

Acetone

4.877

4.942

Adipic Acid

7.372

7.927

Butadiene

48.730

67.041

DEG

17.479

18.133

DINP/DOP

14.403

15.473

Ethyl Acetate

12.015

10.455

Ethylene Glycol

69.743

35.293

Ethylene Oxide

10.922

9.650

Isopropanol

6.900

6.972

Maleic Anhydride

7.908

9.244

Methanol

401.321

629.681

Propylene

80.141

100.787

Propylene Glycol

11.989

14.081

VAM

11.437

12.169

Average prices of all oxo alcohols on the European market fell 23% in the first eight months.  The year-on-year decline was driven by lower prices of propylene and natural gas.  The market situation was another factor with a bearing on the prices of oxo alcohols. The decline in demand across virtually all sectors of the European industry has persisted throughout the year, with no clear signs of improvement.

In the first eight months average prices of plasticizers on the European market fell 22%, with most of the decline recorded in the first half of 2023.  The year on-year decline was driven by lower prices of the key feedstocks (2-EH, PTA) and natural gas.  Another significant contributor to the decline in plasticizer prices was imports of much cheaper products from Korea and Turkey into Europe, facilitated by lower logistics costs.

 

Polish acetic acid imports, Jan-Aug 2023

 

Acetic acid imports into Poland dropped from 33,070 tons in the first eight months in 2022 to 23,036 tons in January to August 2023.  The main suppliers to the Polish market this year include the US which increased shipments from 7,584 tons to 10,886 tons.  Average prices for acetic acid dropped from €1181 per ton to €864.0 per ton this year. 

Hungarian organic chemical trade Jan-Jul 2023

Hungarian acrylonitrile imports (unit-kilo tons)

Country

Jan-Jul 23

Jan-Jul 22

Germany

2.418

1.667

France

0.891

3.869

Netherlands

6.914

15.817

Russia

0.000

1.488

Others

3.374

0.726

Total

13.596

23.567

Av € per ton

2166.7

2427.642

Hungarian aniline imports (unit-kilo tons)

Country

Jan-Jul 23

Jan-Jul 22

Belgium

18.650

0.988

China

11.067

0.019

Czech Republic

42.799

58.885

Others

0.000

1.267

Total

72.516

61.160

Av price € per ton

1467.6

1946.9

Acrylonitrile imports into Hungary amounted to 13,596 tons in January to July this year versus 23,567 tons in the same period in 2022.  Average prices dropped from €2427.6 per ton against €2166.7 per ton in the first seven months in 2023.   

Hungarian Maleic Anhydride Exports

(unit-kilo tons)

Country

Jan-Jul 23

Jan-Jul 22

Austria

1.821

1.818

Germany

0.838

0.846

Italy

1.783

1.666

Poland

1.654

3.722

Slovenia

1.192

1.359

Others

3.906

5.746

Total

11.195

15.158

Av price

1249.7

2281.3

Aniline imports into Hungary amounted to 72,516 tons in January to July this year against 61,160 tons in the same period in 2022.  Imports of aniline from China amounted to 11,067 tons whilst imports from the BorsodChem Ostrava plant in the Czech Republic totalled 42,799 tons against 58,885 tons in the same seven months in 2023.  Imports from Belgium rose from only 988 tons in January to July 2022 to 18,650 tons this year. 

The largest supplier of acrylonitrile to Hungary in 2022 was the Netherlands, accounting for 22,953 tons for €55.452 million.    The Netherlands reduced shipments in the first seven months to 4,916 tons from 9,697 tons.   

Maleic anhydride exports from Hungary amounted to 11,195 tons in the first seven months in 2023 against 15,158 tons in the same period in 2022.  Most of the exports were delivered in liquid form to customers up to 500 km from the Szazhalombatta plant which is located at the Danube refinery.   Austria accounted for 1,821 tons in January to July 2023 against 1,818 tons in the same period last year, whilst shipments to Poland fell from 3,722 tons to 1,654 tons.  Average prices for fell from €2281.3 per ton to €1249.7.

 

 

 

Central European MDI trade Jan-Aug 2023

Czech MDI Imports (unit-kilo tons)

Country

Jan-Aug 23

Jan-Aug 22

China

2.588

2.274

Belgium

6.190

8.279

Germany

3.174

5.999

Hungary

7.124

4.140

Netherlands

4.724

2.247

Others

0.834

0.733

Total

24.633

23.672

Av Price €

2318.2

2693.6

MDI imports into the Czech Republic totalled 24,633 tons in the first eight months in 2023 against 23,672 tons in the same period in 2022.  Hungary provided the largest share of imports at 7,124 tons followed by Belgium with 6,190 tons.  Average MDI prices declined from €2693.6 per ton to €2318.2 per ton. 

Polish MDI Imports (€ million)

Country

Jan-Aug 23

Jan-Aug 22

Germany

25.259

28.033

Netherlands

15.815

13.628

Hungary

23.871

25.956

Belgium

16.635

22.719

South Korea

5.448

1.397

Others

9.259

7.073

Total

96.287

98.806

Av price € per ton

2142.4

2624.8

Hungarian MDI Exports

(unit-kilo tons)

 

Jan-Jul 23

Jan-Jul 22

Kilo tons

100.777

127.052

Av price € per ton

2153.5

2603.1

MDI imports into Poland dropped from 98,806 tons in the first eight months in 2022 to 96,287 tons in the same period this year.  Hungary and Germany remain the two largest import sources, with overall average prices comprising €2624.8 per ton in January to August 2023 against €2534.6 per ton last year.  Overall costs for MDI imports dropped from €259.346 million in the first eight months last year against €206.286 in the same period in 2022.

Hungarian MDI exports dropped in January to July 2023 to 100,777 tons versus 127,052 tons in the same period in 2022.  Poland represented the largest destination with deliveries amounting to 20,627 tons, down from 23,035 tons, followed by Germany which reduced purchases from 15,222 tons to 12,389 tons.  MDI export prices dropped from €2603.1 per ton in the first seven months in 2022 to €2153.5 this year.  

Central European TDI trade Jan-Aug 2023

TDI exports from Hungary amounted to 134,055 tons in the first seven months in 2023 versus 163,317 tons in the first seven months last year, with average prices rising this year to €2750.9 per ton from €2728.6 per ton in January to July 2022. 

Hungarian TDI Exports (unit-ktons)

 

Jan-Jul 23

Jan-Jul 22

Kilo tons

134.055

163.317

Av price € per ton

2750.9

2728.6

TDI exports to Turkey amounted to 19,267 tons in the first seven months in 2023 against 23,018 tons last year whilst Italy reduced imports from Hungary from 22,741 tons to 8,217 tons.  Polish imports dropped from 9,869 tons to 12,642 tons.  Belgium took 14,166 tons in January to July this year down from 18,061 tons, whilst Romania reduced purchases slightly from 6,198 tons 5,486 tons.   Hungary remains the largest supplier of TDI to the Polish market, although volumes fell in value from €39.326 million in the first seven months in 2022 to €35.542 million in the same period this year.   

Despite the fall in volumes from 51,235 tons to 43,854 tons, average prices for TDI increased from €2693.2 per ton to €2794.8 per ton this year.   European demand for TDI is faced by recessionary trends and slowly declining feedstock costs.  In effect only global capacity constraints can help to sustain prices. 

 

Hungarian polyol imports Jan-Jul 2023

 

Hungarian Polyol Imports (unit-kilo tons)

Country

Jan-Jul 23

Jan-Jul 22

Austria

0.369

0.200

Belgium

12.318

1.192

China

5.535

5.733

Germany

1.793

2.307

Italy

0.265

0.223

Netherlands

2.417

4.354

Poland

0.980

2.039

Romania

0.882

1.577

Others

0.929

0.857

Total

25.487

18.482

Hungarian polyol imports amounted to 25,487 tons in the first seven months this year against 18,482 tons in the same period in 2022.  Belgium was the largest supplier this year, shipping 12,318 tons.  Major suppliers of polyols to Hungary in 2022 included China with 11,091 tons and the Netherlands with 10,746 tons. 

Czech Polyol Imports

 

Jan-Aug 23

Jan-Aug 22

Volume ktons

25.075

21.679

Value € million

66.300

60.501

Av price € per ton

2590.1

2841.3

MOL is currently constructing its new plant at Tiszaujvaros which should have probably been on stream now.  In June MOL fed propylene oxide into the pilot polyol plant and large-scale test production at the base is expected to start in the second half of 2023.  MOL is waiting for European markets to revive before starting production. 

Czech polyol imports Jan-Aug 2023

Czech polyol imports amounted to 30,075 tons in the first eight months in 2023 against 27,679 tons in the same period in 2022.  The major sources of imports came from Belgium, France and Germany.  Polyol import costs increased in the first eight months to €80.489 million from €78.273 million in January to August 2022 with average prices dropping from €2412.8 per ton to €2085.1 per ton. 

 

Polish polyol imports Jan-Aug 2023

 

Polish Polyol Imports (unit-kilo tons)

Country

Jan-Aug 23

Jan-Aug 22

Belgium

11.904

17.818

China

4.825

1.574

France

3.465

0.000

Germany

21.907

17.723

Netherlands

20.935

8.908

Romania

9.986

23.024

Saudi Arabia

2.199

15.594

South Korea

10.876

0.000

Others

10.607

13.727

Total

96.704

98.369

Av price € per ton

2109.3

2646.2

Polish polyol imports amounted to 96,704 tons in the first eight months in 2023 against 98,369 tons in the same period in 2022.  The major sources of imports came from Belgium, Germany and the Netherlands. 

Polyol import costs dropped in the first eight months to €203.079 million from €260.305 million in January to August 2022 with average prices dropping from €2646.2 per ton to €2109.3 per ton. 

 

The largest source of imports came from Germany in the first eight months, amounting to 21,907 tons against 17,723 in the same period in 2022.

 

Polish exports of polyols amounted to 36,501 tons in the first eight months this year against 56,937 tons in the same period in 2022, but prices dropped from €2694.9 per ton to €2314.7 per ton.  Revenues from polyol exports dropped from €153.440 million in January to August 2022 to €84.487 million.  The largest destinations for Polish polyol export include Hungary, Italy and Denmark.

Central European Methanol

 

Central European methanol trade Jan-Aug 2023

 

Polish Methanol Exports (unit-kilo tons)

Country

Jan-Aug 23

Jan-Aug 22

Austria

30.100

52.398

Czech

38.866

51.861

Germany

55.949

80.209

Romania

18.927

26.177

Slovakia

29.152

33.263

Ukraine

15.366

9.902

Hungary

12.284

32.214

Others

0.218

4.118

Total

200.863

290.142

Av price € per ton

368.7

434.5

Exports of methanol from Poland totalled 200,863 tons in the first eight months in 2023 against 290,142 tons in January to August 2022.  Exports to Germany fell from 80,209 tons to 55,949 tons.  Ukraine imported 15,366 tons of methanol from Poland in the first eight months in 2023 versus 9,902 tons last year.    

Other destinations include the Czech Republic where Polish exports dropped from 51,861 tons to 38,866 tons whilst deliveries to Austria dropped from 52,398 tons to 30,100 tons.  Exports amounted to 16,182 tons in August against 41,204 tons in August last year, reflecting the lower methanol trade volumes in Poland since the end of Russian methanol imports in June this year.

Polish Methanol Imports (unit-kilo tons)

Country

Jan-Aug 23

Jan-Aug 22

Azerbaijan

4.981

1.138

Belgium

41.745

0.044

Finland

0.000

42.007

Germany

40.825

76.140

Netherlands

3.806

0.650

Norway

70.666

16.787

Russia

187.561

469.489

US

20.999

0.000

Trinidad

7.989

0.000

Venezuela

20.765

0.000

Others

1.374

2.857

Total

400.711

609.968

€ price per ton

291.6

381.3

Imports of methanol into Poland dropped from 609,968 tons in the first eight months in 2022 to 400,711 tons in the same period in 2022 with average prices dropping from €381.3 per ton to €291.6 in 2023.

Czech methanol Imports (unit-kilo tons)

Country

Jan-Aug 23

Jan-Aug 21

Germany

4.289

3.868

Norway

0.000

0.597

Russia

6.237

21.299

Poland

34.716

22.692

Others

4.544

0.989

Total

49.786

49.445

Av price € per ton

389.656

485.988

Russia reduced exports to Poland in January to August 2023 to 187,561 tons from 469,489 tons.   Norway shipped 70,666 tons in the first eight months to Poland, against 16,787 tons last year, whilst Germany reduced exports to 40,825 tons from 76,140 tons. 

Czech imports of methanol amounted to 49,786 tons in the first eight months in 2023 against 49,445 tons in the same period in 2022.  Russia accounted for 6,237 tons in January-August 2023 against 21,299 tons in 2022. 

Hungarian methanol imports (unit-kilo tons)

Country

Jan-Jul 23

Jan-Jul 22

Austria

0.917

2.239

Germany

16.166

11.681

Netherlands

17.264

11.423

Poland

10.234

13.308

Russia

0.000

21.526

Slovenia

1.862

1.182

Slovakia

4.591

17.575

Others

3.440

4.556

Total

54.474

83.491

€ per ton

440.562

489.759

Imports of methanol into the Czech Republic were dominated by Poland which increased shipments from 22,692 tons in January to August 2022 to 34,716 tons.  Average prices for methanol imports dropped from €485.9 per ton last year to €389.656 per ton.

Hungarian imports of methanol totalled 54,474 tons in January to July this year versus 83,491 tons in January to July last year.  Prices averaged €440.562 per ton in the first seven months against €489.759 per ton in the same period in 2022. 

 

Grupa Azoty financial performance 2023

 

Grupa Azoty’s External Sales  

(€ million)

Period: Jan-Jun 2023

Total

Total sales revenue

251.759

Operating profit/loss

-56.725

EBITDA

41.740

 

 

Period: Jan-Jun 2022

Total

Total sales revenue

446.550

Operating profit/loss

+60.257

EBITDA

76.935

Grupa Azoty posted a consolidated net loss of zl 543 million (€117.1 million) in the second quarter against zl 800 million profit (€172.5 million) in the first half of 2022.  The EBITDA margin amounted to 17.4% for the second quarter, and minus 13.7% for the first six months in 2023.  The operating loss amounted to zl 807 million (€172.5 million) compared to zl 1,059 million profit (€228.3 million) in April to June 2022.

Grupa Azoty Production (unit-kilo tons)

Product

Jan-Aug 23

Jan-Aug 22

Nitrogen Fertilisers

1143.26

1776

Compound Fertilisers

264

429

Potassium Fertilisers

40

80

Pigments

9

15

Urea

350

775

Oxo alcohols

53

108

Polyamide

48

80

Ammonia

33

23

Caprolactam

45.6

81.5

Speciality Fertilisers

132

166

Inter-group sales for Grupa Azoty slightly exceed external sales.  Those sales to customers outside Grupa Azoty dropped from €446.6 million in the first half of 2022 to €251.8 million in the same period in 2023. 

Grupa Azoty recorded limited demand this year for its products combined with strong downward pressure on prices. The decrease in sales volumes, combined with the low level of demand, forced the group to close or reduce production where necessary. 

Anwil completing construction of the nitrogen fertiliser plant

Anwil from the Orlen Group is finalising the construction of a third line for the production of nitrogen fertilisers, which will limit the import of fertilising products and strengthen the food security of Poland. This will be possible as a result of increasing the fertiliser production capacity by 50%.  The installation at Wloclawek is also in line with the Orlen Group's strategic objectives in the

Polish Chemical Production (unit-kilo tons)

 Product

Jan-Aug 23

Jan-Aug 22

 Caustic Soda Liquid

221.3

283.5

 Caustic Soda Solid

43.1

44.6

 Caprolactam

58.9

107.0

 Ammonia (Gaseous)

1070.0

1583.0

 Pesticides

31.1

47.0

 Nitric Acid

1165.5

1494.0

 Nitrogen Fertilisers

932.1

1284.0

 Phosphate Fertilisers

111.1

228.6

 Potassium Fertilisers

116.2

214.9

area of carbon neutrality. The third fertiliser production line includes a nitric acid and neutralisation plant, a granulation plant and auxiliary infrastructure. Its creation increases the existing production capacity of Anwil by 50%, to 1.461 million tpa. The modern technology used is a guarantee not only of increased efficiency, but also of safety of production continuity.

Orlen is still analaysing Pulawy

PKN Orlen is still considering the possible acquisition of Grupa Azoty Pulawy in order to gain a competitive advantage in the fertiliser industry in Central Europe.  On 6 June Grupa Azoty announced that a confidentiality document information between GA Pulawy, PKN Orlen and Grupa Azoty. in connection with the intention to commence talks regarding a potential acquisition by PKN Orlen. Grupa Azoty may be ready to sell some assets after a very difficult first half year, although there may be some opposition to the deal going through.  

The third fertiliser production line uses the leading global EnviNOx technology. It will make it possible to reduce greenhouse gas emissions in production by about 99%, i.e., by about 4,200 tpa of nitrogen oxides.

Ciech Jan-Jun 2023

Ciech revenues rose 18% in the first half of 2023 but at the same time the EBITDA fell by 15% to zl 365 million.  Moreover the company's net loss amounted to zl 17 million versus a profit of zl 147 million achieved in January to June 2022.  Whilst the lower EBITDA is due to tighter margins, the net loss occurred due to one-off non-cash events resulting from, exchange rate differences or provisions.

Ciech has been affected by slowdowns in the soda ash market exacerbated by weak demand in the glass sector.  Moreover, global soda production capacity and an increase in supply led to increased competition and as a result of these factors, the volume of sales of soda ash fell by 19% in the second quarter down to 321,000 tons.  First quarter sales amounted to 326,000 tons.  Stable revenues were accompanied by an increase in costs caused by the persistently high prices of Polish coal, which reduced the margin.

Ciech Revenues Jan-Jun 2023 (€ million)

 

Soda 

Foams 

Total

Total sales revenues

496.055

31.501

631.437

Cost of sales

-436.358

-26.280

-535.078

Gross profit /(loss) on sales

59.697

5.221

96.359

Selling costs

-19.135

-1.533

-31.205

Higher revenues of the salt business resulted from increased production capacity at Stassfurt (full production capacity is to be achieved in 2024) and the result of sales activities.  The salt business is one of the six key areas of activity of Ciech, the largest producer of evaporated salt in Poland. The group produces salt at its plant in Janikowo near Inowroclaw (Kujawy) and in the new Ciech salt works in Stassfurt, Germany, launched in 2021.  The factory in Stassfurt will ultimately produce about 450,000 tpa.  Ciech soda ash capacity in Poland stands at 1.450 million tpa, with another 610,000 tpa at Ciech’s plant in Germany and 540,000 tpa at Ciech Soda Romania.   Currently, Ciech’s plant in Germany at Stassfurt is capable of producing up to 50,000 tpa of high-grade sodium bicarbonate, with an overall capacity of 110,000 tpa. 

Ciech’s foam business observed a significant downturn in the first half of 2023 mainly from a decline in demand from furniture manufacturers.  In the first half of 2023, the foams segment achieved an EBITDA result of zl 16 million, generating revenues of zl 146 million (compared to zl 180 million in 2022).  

Duslo not expected to beat 2022 profits

Slovak chemical producer Duslo Sala is unlikely to repeat last year's record sales due to the costs of energy as well as the influx of cheap fertilisers from abroad.  Abnormal amounts of fertiliser are flowing into Europe today, mainly from Russia and the US, and from countries such as Turkmenistan and Azerbaijan. Duslo continues to strive to reduce the environmental impact of its activities and is currently building a new ammonia plant using green technologies.  This involves photovoltaic power plant, wind farm, electrolyser and battery storage.

 


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