Eurasian chemical market

Trends in the World and Russian Polyolefin Markets

     The polyolefin construction projects announced by key Russian producers to date may not turn out to be viable programmes but just a warning signal for potential market players, causing them to revise their expansion plans downwards. Instead of an expected surplus of polyethylene (PE) and polypropylene (PP) in the domestic market, we shall most likely face a deficit continuing for at least 7-10 years or so. Russia is not likely to become one of the leading polyolefin exporters in the future. The forecasts for 2006-2009 suggest the existence of a single global centre in the Middle East. Russia is not viewed as a world major polyolefin supplier, even in the years to come. On the contrary, the country is expected to stay an exporter of raw hydrocarbons.

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