Russian PX-PTA-PET production Jan-Mar 2025

Russian paraxylene production amounted to 66,688 tons in the first quarter in 2025 against 68,184 tons in the first quarter last year.  Gazprom Neft at Omsk reduced production from 25,272 tons to 15,053 tons whilst Ufaneftekhim increased production from 31,126 tons to 38,556 tons.

PTA production at Polief amounted to 84,254 tons in the first quarter down against 91,698 tons in January to March 2024.   Russian PET production rose slightly from 154,542 tons to 169,561 tons in the first quarter this year of which Polief produced 55,216 tons. 

Ekopet produced 62,707 tons of PET in January to March making it Russia’s largest producer, whilst the combined plants of Senezh and SIBUR-PETF produced 51,123 tons.

Russian PTA imports Jan-Mar 2025

Russian PTA imports from China amounted to 110,256 tons in the first quarter in 2025 versus 79,012 tons in the same period in 2024.  Higher PTA imports were required to support higher PET production.  This year PTA deliveries have started to be received by ship in addition to rail.  A large-capacity vessel Union Faith delivered 12,000 tons of imported PTA to the Kaliningrad region in April, intended for Ekopet’s PET production. 

In order to prepare for safe mooring and efficient handling of large vessels, the port was required to undertake significant work to modernise berths, port infrastructure and storage facilities.  

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

Chinese shipments of PET to Russia amounted to 76,962 tons in January to March this year against 55,714 tons in the first quarter in 2024.  Costs of Chinese PET import shipments into Russia rose from $49.086 million to $61.901 million  Average prices dropped from $881.0 per ton to $804.3 per ton. 

Chinese shipments of MEG to Russia amounted to 24,759 tons in January to March this year against 30,344 tons in the first quarter in 2024.  Costs of Chinese MEG import shipments into Russia rose from $17.489 million to $14.857 million, which meant that average prices rose from $576.3 per ton to $600.0 per ton.

Russian synthetic rubber production and market Jan-Mar 2025

Synthetic rubber production in Russia amounted to 399,650 tons in January to March 2025 against 376,847 tons in January to March last year.   Production tended to stabilise in 2024 but is still much lower than prior to the full-scale Russian invasion of Ukraine.  The increase in the first quarter this year has partly been due to the increase in tyre production in Russia.  However, the main reason was the increase in Russian exports to China, rising to 208,046 tons against 138,270 tons in the same quarter last year.

Russian Chinese rubber trade Jan-Mar 2025

Russian export revenues from synthetic rubber shipments to China totalled $330.595 million in January to March 2025 against $216.860 million in the same period in 2024. 

The largest category purchased by China was for isoprene rubber with costs rising to $71.993 million against $25.852 million in the same period in 2024, followed by butadiene rubber where costs amounted to $59.002 million against $39.523 million.     

By volume Russian shipments of synthetic rubber to China amounted to 208,046 tons in the first three months in 2025, which was up from 138,270 tons in the same period in 2024.  Isoprene rubber exports represented the largest category, rising from 18,243 tons in 2023 to 41,642 tons.  Exports of thermoplastic elastomers increased sharply from 12,864 tons to 36,566 tons.  Butyl rubber exports from Russia to China increased to 36,595 tons from 27,979 tons in 2024.  Nitrile-butadiene rubber exports to China amounted to 6,591 tons in the first three months in 2025 against 8,607 tons in the same period in 2024. 

Russian synthetic rubber production by category

Isoprene rubber production in Russia amounted to 81,773 tons in January to March 2025 against 64,939 tons in January to March 2024 whilst butadiene rubber production increased from 67,364 tons to 69,003 tons.  The highest value rubber produced by Russia is halogenated butyl rubber where production dropped from 30,204 tons in January to March last year to 24,290 tons this year of which most was exported to China. 

The expanded halogenated butyl rubber at Nizhnekamskneftekhim is lacking market exposure to sanctioned European markets, which are helps to explain why the plant is running only at around 50% of capacity.  Butyl rubber production dropped in January to March 2025 to 40,813 tons from 45,776 tons in 2024.

Russian methanol production Jan-Mar 2025

Russia produced 1.040 million tons of methanol in January to March 2025 against 985,580 tons in January to March 2024.  Production in the Central region, which includes Shchekinoazot and Azot at Novomoskovsk, reduced production from 304,891 tons to 259,480 tons.  The Volga region increased production from 416,164 tons to 509,195 tons, whilst the Siberian Federal District (including Gazprom Methanol and Angarsk Petrochemical) reduced production from 193,347 tons to 190,802 tons.   

Russian methanol exports Jan-Mar 2025

Russian methanol exports amounted to 403,274 tons in January to March 2025 against 322,401 tons in the same period in 2024.  Whilst Shchekinoazot reduced exports slightly from 129,140 tons to 125,094 tons, Metafrax Chemicals increased shipments from 55,524 tons to 101,473 tons.   Tomet exported 86,076 tons versus 34,677 tons in January to March 2024.  Gazprom Methanol increased exports to 86,549 tons from 77,357 tons.   

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

Turkey has seen shipments from Russia increased from 6,000 tons in 2021 (0.3% of total exports) to 252,000 tons (20.1%) in 2024. The restrictive problem for sales to Turkey is that terminals can accept vessels with a capacity of no more than 8,000.

Despite the limitation on terminal facilities, volumes to Turkey actually increased in the first quarter last year to 92,075 tons.  Export sales to Brazil were undertaken for the first time in the first quarter and amounted to 41,754 tons. 

Exports to China amounted to 202,299 tons in January to March 2025 against 222,878 tons in January to March last year.  Supplies to China will continue to grow, but this is not very profitable for domestic producers, due to lower prices in China, expensive logistics and railway congestion in the eastern direction.  

Until 2022 there were no supplies to the Asia-Pacific countries due to significant logistics costs.  It is for this reason that the specialized methanol transhipment terminal built at Nakhodka in 2004 was not used for its intended purpose.  Instead, it was repurposed for light oil products and it only resumed methanol shipments in 2022.  Exports through the terminal amounted to 720,000 tons in 2024. 

Russian methanol domestic sales, Jan-Mar 2025

Domestic merchant sales of methanol dropped to 384,574 tons in January to March 2025 against 400,916 tons in January to March 2024.  Metafrax Chemicals reduced domestic merchant sales to 124,912 tons in January to March 2025 against 129,038 tons in January to March last year, whilst Gazprom Methanol reduced domestic merchant sales to 85,350 tons which was down from 95,092 tons.  Management of the sales function at Gazprom Methanol was transferred at the beginning of 2025 to Gazprom's subsidiary, Gazprom Gazonefteprodukt Holding.  Shchekinoazot shipped 91,761 tons in January to March 2025 against 91,957 tons last year.  

For the domestic market formaldehyde remains  the most important derivative.   From 2008 to 2021, the total production of formaldehyde and urea-formaldehyde concentrate (UFC), in terms of 37% aqueous solution, increased by 60% and amounted to 1.83 million tons in 2021.  Over this period methanol consumption increased by 1.6 times to 1 million tons.  Formaldehyde demand dropped in the 2022-2023 period which impacted on domestic methanol sales, but production and consumption recovered in 2024.   

In order to minimize losses from the closure of the European market, domestic producers that can produce both methanol and ammonia have reduced methanol loading and increasing the production of ammonia and its derivatives.

Russian methanol plants with a high share of in-plant processing such as Azot at Nevinnomyssk, Angarsk Petrochemical Plant and Akron have been least affected by the fall in export activity in the past two years.  In the case of Ammoni at Mendeleevsk methanol production has been reduced in place of ammonia, urea and fertiliser production.  Methanol production at the Ammoni plant decreased from 221,000 tons in 2018 to 92,000 tons in 2024.  Shchekinoazot and the jv Hexion-Shchekinoazot are completing the construction of the KMMP (concentrated low-methanol formalin) unit with a capacity of 110,000 tpa and the production of resins (urea-formaldehyde resins (UFRS) and urea-melamine-formaldehyde resins (KMFS)) with a capacity of 220,000 tpa.

Methanol production Central Federal District

Production increased in all Russian federal districts in the first quarter this year, except for the Central Federal District where production at Azot at Novomoskovsk has been stopped and is unlikely to resume.  Whilst the main regional producer Shchekinoazot has reduced operational activity in the past two years, Azot at Novomoskovsk stopped shipping products in late 2024.  The plant is currently idle and is reported to be in the process of being mothballed.  The methanol capacity of Azot is 340,000 tpa, but is dependent completely on merchant sales.  Since 2022 the plant has been operating at gradually lower utilisation rates with reduced exports and domestic sales.  The drone attacks on the Kavkaz terminal, which was used by Azot for exporting to Turkey, was a factor in holding company Evrokhim suspending production last year.

Phasing the Novomoskovsk methanol out of the Russian market has not caused any supply problems  as the some of the volumes previously exported have been redistributed amongst domestic consumers.  Shchekinoazot remains the monopoly supplier in the Central Federal District, which allows it to set inflated prices for methanol in its region.  Shchekinoazot, which has a combined M-450\A-135 unit, has reduced methanol production in the past two years. In 2022, when the company was operating at maximum methanol loading, 1.513 million tons of this product were produced in 2022 falling by 24% in 2024 to only 1.160 million tons.

Russian butanol production Jan-Mar 2025

Russian normal butanol production increased from 33,125 tons in January to March 2024 to 40,998 tons in the first quarter this year.  The Volga region, which includes SIBUR-Khimprom, increased production from 22,337 tons to 33,959 tons.

Isobutanol production increased in the first quarter to 36,776 tons against 26,716 tons in the same period in 2024.  Despite the plant at Angarsk being idle for the first quarter SIBUR-Khimprom at Perm increased production from 18,180 tons to 26,427 tons.  Gazprom neftekhim Salavat also increased the production of isobutanol in in the first quarter.

Russian acetone production Jan-Mar 2025

Russian acetone production dropped from 41,095 tons in January to March 2024 to 38,103 tons in January to March 2025.  Omsk Kaucuk produced 9,636 tons of acetone against 10,842 tons in the previous year whilst Kazanorgsintez reduced production from 12,210 tons to 11,083 tons.  The other two producers Ufaorgsintez and Novokuibyshevsk Petrochemical Combine both came under drone attacks in March reflecting the continuing threats posed to Russian plants. 

Russian acetic acid production Jan-Mar 2025

Russian acetic acid production amounted to 51,914 tons in January to March 2025 against 51,276 tons in the same period in 2024.  The largest producer in Russia, Azot at Nevinnomyssk, increased production from 38,680 tons to 38,983 tons.  Aside using acetic acid for the production of butyl acetate and methyl acetate Azot supplies merchant acetic to the Russian domestic market.  The two largest customers include Polief which purchases acetic acid for PTA and Stavrolen which uses acetic acid in the production of vinyl acetate monomer (VAM). 

Isopropanol production in Russia amounted to 15.014 tons in January to March 2025 against 16,842 tons in the same period last year.  Omsk Kaucuk reduced production from 6,202 tons to 5,974 tons whilst the Plant at Synthetic Alcohol at Orsk reduced production from 10,640 tons to 9,040 tons.    

Russian phthalic and maleic production Jan-Mar 2025

Phthalic anhydride production in Russia totalled 21,697 tons in the first quarter in 2025 against 23,514 tons in the same period in 2024.  Kamteks-Khimprom at Perm is the largest producer followed by Gazprom neftekhim Salavat, and together these two plants produced 75,446 tons in 2024. 

Maleic anhydride production in Russia totalled 11,401 tons in the first three months in 2025, against 9,551 tons in the same period in 2024.  Consumption of maleic anhydride in the Russian market in 2024 in amounted to 11,200 tons against 11,000 tons in the previous year.  The market has been helped by the start-up of the plant at Tobolsk in 2022, which was constructed using Italian technology.

Russian TDI imports Jan-Mar 2025

TDI imports into Russia from South Korea amounted to 3,236 tons in January to March 2025 against 3,162 tons in January to March 2024.  Prices of imports from South Korea amounted to $1908.5 per ton against $1999.6 per ton in 2024.

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

Russian MDI imports Jan-Mar 2025

MDI imports from China into Russia amounted to 21,308 tons in January to March 2025 against 19,579 tons in the same period in 2024.  Due to lower prices in 2025, costs of Chinese imports increased from $37.914 million to $40.930 million in 2024. 

The main isocyanate imported into Russia is MDI, which accounted for 75.4% of all imports in this segment in 2024.  The share of Chinese MDI in imports increased from 22.7% in 2021 to 53.5% in 2023.  After encountering shortages of MDI in the second and third quarters, Russian consumers benefited in October from an increase in shipments from China.  Russian companies faced significant difficulties last year in paying Chinese suppliers and banks.  The revival of the rouble this year has made purchases easier than in 2024.

Chinese exports of polyols to Russia Jan-Mar 2025

Polyol imports into Russia from China fell from 31,079 tons in January to March 2024 to 27,222 tons in the first quarter in 2025.    Import costs dropped from $43.963 million in the first three months in 2024 to $37.308 million in the same period this year.  Average prices dropped from $1414.6 per ton to $1370.5 in 2025. 

Russian dependence on polyurethane raw materials

The raw material situation and dependency on imports has represented a long-term issue for the Russian polyurethane foam sector.  For polyols, there are plants in the country such as Nizhnekamskneftekhim that produce certain volumes.   However, domestic production is insufficient to meet demand, and Russia still needs to import polyols. 

For isocyanates, supply is more complicated where Russian companies almost exclusively depend on imports.  The lion’s share of supplies currently come from China which has become a world leader in this sector.  Polyurethane foam manufacturers state that without Russia developing its own raw material base the country will continue to remain in a vulnerable position in depending on world prices and logistics chains.  Whilst polyurethane foam is produced in the country in large volume, the raw material base of isocyanates and polyols is a difficult issue for the sector. 

SIBUR, pilot plant for isocyanates 2025?

By the end of 2025, SIBUR Holding plans to launch a pilot plant for the production of isocyanates and the company will be able to calculate the financial model taking into account domestic aniline.  The pilot plant was aimed for start-up by the end of 2024 and thus facing more delays.  The aim is to build the entire production chain, but this goal is not particularly new.  Even if the pilot plant is successful the domestic production of isocyanates would not be expected for at least five years.  The problem comes down to cost which probably even SIBUR cannot finance alone and thus there are calls for the state to provide 50-60% of the cost.

Kazakh polypropylene exports and domestic market

Kazakhstan Petrochemical Industries (KPI) exported 30,814 tons of polypropylene to China in the first quarter in 2025 against 34,700 tons in the same period in 2024. 

SIBUR has bought 60% of the shares of Polymer Production in Kazakhstan from KazMunayGaz (KMG). The parties will jointly continue to develop the production of biaxially oriented films (BOPP) and polymer bags in the republic.  At the moment, the company can produce 11,000 tpa of BOPP and 27,000 tpa of polypropylene bags.

SOCAR Jan-Mar 2025

Azerbaijan produced 97,700 tons of methanol in January to March 2025 versus 123,600 tons in January to March 2024.  Azerbaijan exported 90,709 tons of methanol in the first quarter which was 32.2% down in the same period last year, whilst export revenues rose by 24.1% to $28.245 million.  Azerbaijan started shipping methanol to Gibraltar in April for the first time.

Chinese Exports of PET to Central Asia

PET exports from China to Kazakhstan amounted to 29,528 tons in the first quarter in 2025 against 14,930 tons in the same period in 2024, whilst exports to Uzbekistan increased from 29,497 tons to 39,497 tons.

Silleno polyethylene project

As part of the Silleno polyethylene project the main contractor Tecnicas Reunidas has signed a memorandum of cooperation to increase local content.  Within the framework of the memorandum, it is planned to launch an annual program for the training of 30 graduates of Kazakh universities of engineering specialties in Spain with subsequent employment at Tecnicas Reunidas.  The EPC contract with Tecnicas Reunidas was signed in September 2024 and together with Sinopec Engineering Incorporation preparations have been underway for the construction of a pyrolysis unit.

The main equipment with a long production cycle (44 units) has been ordered, including an order for the two largest columns from local company Atyrauneftemash.  In addition, Tecnicas Reunidas has opened a regional centre in Astana and intends to provide priority reception and training of local personnel.  KazMunayGaz (KMG) expects more than 8,000 temporary jobs to be created during the construction of the plant, and about 800 permanent jobs during operation.

Chimcomplex considering chemical project in Turkmenistan

Romanian company Chimcomplex has proposed the creation of the Turkmen Romanian Chemical Company, which would be Turkmenistan's Turkmenhimiya Concern.  The Turkmen Romanian Chemical Company (C.T.R.C.) includes the construction of four large production complexes.  These include a chlorine oxide plant with a capacity of 100,000 tpa, a polyol plant with a capacity of 40,000 tpa, a PVC production plant with a capacity of 140,000 tpa and a complex for the production of special chemicals.

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