August 5, 2008 1 © MRC
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Polyethylene. Russia August 5, 2008
Monthly Report: June Editor: Vladimir Shugaliev ([email protected])
The Report has been made up on the basis of statistical information provided by the statistical institutions of the Russian Federation and may contain certain inaccuracies connected with the incorrect distribution of data by types of polymers based on the Foreign Trade Codes in the customs statistics of the Federal Customs Service or on codes of the Federal Service of State Statistics of the Russian Federation on production statistics. The Quarterly Report contains data corrected on the basis of MRC methods. The most detailed market information by consumers, producers and
their brands can be found in our Annual Reports. The information presented in this Report is intended for the exclusive use of MRC clients. The information presented herein is strictly the opinion of MRC and is based on data collected within the public sector and on data prepared by the specialists of MRC. MRC furnishes no security or warranty and assumes no liability as to consequences of
decisions taken in regard to the information presented in this Report.
Consumption, KT
0
35
70
105
140
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Production, KT
0
30
60
90
120
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Export, KT
0
6
12
18
24
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Import, KT
0
11
22
33
44
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Export to Production,%
0%
6%
12%
18%
24%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Import to Consumption,%
0%
10%
20%
30%
40%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
HDPE Price1, domestic market, CPT Moscow, RUB/mt
51 500
53 500
55 500
57 500
59 500
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007
2008
LDPE Price2, domestic market, CPT Moscow, RUB/mt
40 000
44 000
48 000
52 000
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007
2008
1- domestic price quoted as CPT, Moscow, including customs duty and VAT, RUB (average weighted price ratio of domestic and foreign HDPE brands) 2- domestic price quoted as CPT, Moscow, including customs duty and VAT, RUB (average weighted price ratio of domestic and foreign LDPE brands)
General Indexes. LDPE, HDPE, LLDPE
Monthly Report. Russia. PE
August 5, 2008 2 © MRC
Consumption of PE, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of the year4
Growth5,%
2001 55.12 45.17 45.92 52.14 54.45 43.35 47.85 35.71 66.82 68.73 82.92 83.09 - 681.27 -
2002 55.09 52.25 48.79 48.09 67.25 58.71 67.48 47.77 67.66 62.33 74.14 65.35 35% 714.93 11%
2003 48.66 52.88 64.62 68.04 70.00 63.38 71.21 69.59 73.99 77.52 66.80 57.03 8% 783.73 11%
2004 64.02 56.89 95.06 93.29 98.01 79.08 64.27 77.09 77.25 75.64 80.49 82.71 25% 943.80 32%
2005 79.99 67.54 83.35 82.96 98.80 99.67 75.31 88.69 96.93 101.34 91.54 108.57 26% 1 074.68 5%
2006 87.29 86.84 97.18 96.20 113.21 80.29 71.64 93.39 104.91 134.34 137.79 131.51 -19% 1 234.59 10%
2007 123.18 113.85 106.92 123.29 124.67 129.28 117.38 120.12 123.22 135.53 122.12 115.23 61% 1 454.78 29%
2008 115.15 123.93 128.63 123.19 124.86 130.09 - - - - - - 1% 745.86 3%
Production of PE, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 88.20 79.50 89.00 88.10 86.30 73.50 67.00 40.50 72.00 84.60 90.10 90.60 - 949.40 -
2002 86.60 76.90 83.60 85.00 89.90 69.40 73.70 73.50 91.60 95.10 92.20 96.00 -6% 1 013.50 -3%
2003 86.80 77.30 95.00 93.80 91.70 67.10 62.30 71.30 89.00 102.00 99.90 102.00 -3% 1 038.20 4%
2004 101.31 86.64 106.36 100.89 99.91 74.09 54.16 75.25 86.80 94.41 93.17 92.98 10% 1 065.98 11%
2005 93.72 82.02 92.87 86.15 96.81 89.83 60.88 76.85 90.41 93.50 88.34 95.27 21% 1 046.65 -5%
2006 98.13 89.84 95.57 87.47 102.33 69.21 60.00 63.16 79.49 102.54 107.38 119.53 -23% 1 074.65 0%
2007 118.75 106.21 93.90 99.79 93.19 106.02 86.64 87.36 98.73 117.52 118.25 118.79 53% 1 245.15 14%
2008 118.47 107.79 116.94 98.60 106.69 114.87 - - - - - - 8% 663.36 7%
Export of PE, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 37.48 38.45 48.04 40.07 35.78 34.21 23.30 8.62 10.05 19.09 8.80 9.10 - 312.98 -
2002 36.11 30.19 38.69 41.70 26.66 14.64 10.80 29.98 28.83 38.81 22.56 33.46 -57% 352.42 -20%
2003 40.79 28.77 34.70 30.91 28.43 17.58 12.26 14.21 23.98 34.28 40.67 55.49 20% 362.06 -4%
2004 44.36 36.95 20.32 15.98 13.11 12.23 7.06 10.64 18.74 27.44 22.20 20.05 -30% 249.10 -21%
2005 20.42 20.12 17.90 15.05 10.22 6.36 2.93 6.76 11.51 12.91 10.43 6.46 -48% 141.07 -37%
2006 20.64 17.93 19.22 15.41 11.35 15.62 11.18 2.23 7.27 8.42 9.37 23.41 146% 162.06 11%
2007 16.93 22.26 19.33 10.31 10.17 13.03 10.18 8.62 10.44 23.87 28.68 37.16 -17% 210.99 -8%
2008 27.74 20.42 19.07 11.10 14.84 17.32 - - - - - - 33% 110.50 20%
Import of PE, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 4.40 4.12 4.96 4.11 3.93 4.07 4.15 3.83 4.87 3.22 1.61 1.58 - 44.85 -
2002 4.60 5.54 3.88 4.79 4.01 3.95 4.59 4.25 4.90 6.04 4.50 2.81 -3% 53.85 5%
2003 2.64 4.36 4.32 5.15 6.73 13.86 21.16 12.50 8.97 9.80 7.57 10.52 251% 107.59 38%
2004 7.07 7.21 9.02 8.38 11.21 17.21 17.17 12.48 9.20 8.67 9.52 9.77 24% 126.92 62%
2005 6.69 5.64 8.38 11.86 12.21 16.20 17.37 18.59 18.03 20.75 13.62 19.76 -6% 169.10 1%
2006 9.80 14.92 20.84 24.13 22.24 26.70 22.82 32.46 32.70 40.22 39.79 35.39 65% 322.00 95%
2007 21.36 29.90 32.36 33.81 41.65 36.29 40.91 41.38 34.93 41.88 32.55 33.60 36% 420.61 65%
2008 24.42 36.55 30.77 35.69 33.01 32.55 - - - - - - -10% 193.00 -1%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year
Monthly Report. Russia. PE.
Market Analysis: Domestic Market, Europe, Asia..…………………………………………………………………………………………………….
4
LDPE: General Indexes ………………………………………………………………………………………………………………………………………… 5
LDPE: Production………………………………………………………………………………………………………………………………………………………………………………………………. 8
LDPE: Export……………………………………………………………………………………………………………………………………………………………………………………………………… 11
LDPE: Import……………………………………………………………………………………………………………………………………………………………………………………………………… 15
HDPE: General Indexes ………………………………………………………………………………………………………………………………………… 17
HDPE: Production………………………………………………………………………………………………………………………………………………………………………………………………. 20
HDPE: Export………………………………………………………………………………………………………………………………………………………………………………………….…………. 22
HDPE: Import…………………………………………………………………………………………………………………………………………………………………………………………………….. 25
LLDPE: Import……………………………………………………………………………………………………………………………………………………… 27
LDPE, HDPE, LLDPE: Prices……………………………………………………………………………………………………………………………………. 30
Key Economic and Social Figures in the Russian Federation ……………………………………………………………………………………… 31
News…………………………………………………………………………………………………………………………………………………………………... 32
General Information
The Report has been made up on the basis of statistical information provided by
the statistical institutions of the Russian Federation and may contain certain
inaccuracies connected with the incorrect distribution of data by types of polymers
based on the Foreign Trade Codes in the customs statistics of the Federal Customs
Service. The Monthly Report data already connected in accordance with MRC
techniques. The most detailed market information by consumers and producers
can be found in our Annual Report. The information presented in this Report is
intended for the exclusive use of MRC clients. The information presented herein is
strictly the opinion of MRC and is based on data collected within the public sector
and on data prepared by the specialists of MRC. MRC furnishes no security or
warranty and assumes no liability as to consequences of decisions taken in regard
to the information presented in this Report.
Classification of Products
The Report contains information on the following products: LDPE – low-density
polyethylene (high pressure - LDPE) with density up to 0.94 g/cm³; HDPE – high-
density polyethylene (low pressure - HDPE) with density more than 0.94 g/cm³;
LLDPE – linear low-density polyethylene (high pressure - LLDPE) with density up to
0.94 g/cm³.
Producers
Producers mean enterprises directly engaged in PE production; i.e. the analysis
does not include all trading, intermediary and offshore companies. The names of
producers are given without inverted comas, their organizational and legal forms
are omitted, and we use general names of groups of companies without names of
their subsidiaries.
Consumption
The consumption rate is defined as the calculated one, i.e. it equals to the
formula “production + import - export”. This figure does not account stock
remainders, and cannot conform to the level of the end consumption.
Prices
In our Reports, we try to represent prices of deals on sales of raw materials as
accurate as possible. Polyethylene prices presented in the Report are quoted as
CPT, Moscow (for more details, see Price Reports). At the formation of prices
we consider prices of the current month.
Diagrams and Tables
Diagrams in the Report are often doubled by the corresponding tables. This has
been done deliberately, since diagrams help define either one or another trend,
while corresponding accurate figures from tables are needed for more prices
analysis.
Designations
In our Report we used the following designations: MT – ton, thous. - thousand,
mln. – million, RUB – Russian ruble, USD – US dollar, EUR – Euro
Growth Rates
As a rule, a growth rate in tables is the ratio of an index during the analyzed
period to the previous period. In case of illogically high (low) indexes, for
example, 900%, we put “-“.
References in the Text
1 – domestic price, quoted as CPT, European part of Russia (Moscow), including
customs duty and VAT, RUB (average weighted price ration of domestic and
foreign HDPE brands)
2 - domestic price, quoted as CPT, European part of Russia (Moscow), including
customs duty and VAT, RUB (average weighted price ration of domestic and
foreign LDPE brands)
3 – growth regarding the same month last year;
4 – aggregate from the beginning of the year up to the present month
inclusive;
5 – growth regarding the same period last year
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Legend
Methodology
- force majeure - growth/decrease since the trend turning point
Contents
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Monthly Report. Russia. PE
August 5, 2008 4 © MRC
According to the results of the first half of the year, overall
estimated polyethylene consumption increased 3% (hereinafter
referred to as compared with the same period last year) and verged
towards 745.86 kt. Owing to increased output in Kazan, Tomsk and
Ufa, overall estimated PE consumption exceeded 130 kt in June.
Over the course of the first half of the year, overall LDPE
consumption moved at 303.25 kt, which was practically the same as
to January-June last year (302.47 kt). Russian producers increased
output volumes in June. Increased output in Tomsk was connected
with the forthcoming scheduled maintenance. Tomskneftechem
started scheduled maintenance on July 10; one of the two
polyethylene lines was the first to be shut down, and the
maintenance is to be finished till August 14. After the maintenance,
Tomskneftechem will operate in a two-year non-stop mode.
Maintenance of LDPE production capacities in Angarsk is scheduled
for early August. Over the course of June-July, average prices for
domestic LDPE varied within the range of RUB50.000-51.000/mt
(USD2.140–2.180/mt), including VAT, СРТ Moscow. Domestic
shrinkable grade was the only exception: July prices varied within the
range of RUB54.500–55.500/mt (USD2.330–2.375/mt), including
VAT, СРТ Moscow.
Balanced state in the domestic LDPE market allowed Russian
producers to export about 11.88 kt in June. More than 39% of that
volume were exported to Ukraine, where there was strong demand
for LDPE film grade.
In June, imports of film LDPE moved at 5.14 kt, which was by 22%
more compared with June last year. The lion’s share of imported
feedstock belonged to Ethylene-Polyethylene’s feedstock from
Azerbaijan (38%). Lack of specific brands is still being met by
European feedstock (Borealis, Ineos Polyolefins , Dow, Exxon Mobil,
etc.).
Actual HDPE consumption increased 2% and moved at 391.83 kt
over the course of the first six months. Significant changes in the
domestic HDPE market will take place in 2009. Launch of
HDPE/LLDPE production capacities in Nizhnekamsk will take place in
December. The enterprise’s annual output capacity is at the level of
230 kta. The initial product mix will include about eight base HDPE
brands, including PE100 pipe grade.
In spite of significant output volumes, the main problem
converters are facing now is partial or absolute lack of some HDPE
brands (injection molding and blown grades). In view of some
objective reasons, Russian producers suspended production of blown
HDPE grade early in July. Kazanorgsyntez began to produce small
lots of the 276-73 blown PE brand only in the middle of the month.
Resumption of production at Stavrolen’s site was scheduled for the
end of July; however, produced volumes will obviously be insufficient
to meet current demand.
Supply of HDPE from Uzbekistan is delayed. Market players report
that Shurtan Gas-Chemical Plant has temporarily cut polyethylene
exports to Russia. Insufficient output of blown HDPE, as well as
lacking volumes of imported feedstock, resulted in significant
increase in prices in the Russian market. There is a more optimistic
situation in the injection molding HDPE market, where available
volumes of Kazan feedstock begin to appear. Limited quantities of
injection molding HDPE feedstock allow traders to vary prices within
quite a wide range. Thus, the price for the ПЭ2НТ22-12 brand had
reached the level of RUB51.000/mt (USD2.190/mt), including VAT,
СРТ Moscow, by the end of July.
There were serious changes in prices for Kazan blown HDPE grade
over the course of July. If at the beginning of the month average
prices for the 276th brand were at the level of RUB 55.000/mt
(USD2.355/mt), then by the end of the month they had moved at
RUB66.000-67.000/mt!!! (USD2.825–2.870/mt), including VAT, СРТ
Moscow. According to unconfirmed data, selling prices for the above
brand will increase by more RUB2.000-2.500/mt (USD85 -110/mt) in
August.
In June, HDPE imports moved at 20.55 kt, which was by 26% less
compared to last June. In spite of the shutdown of the enterprise in
Kalush, Lukoil-Neftechem keeps on importing HDPE film grade from
Ukraine; however, volumes are quite limited. Pipe grade is still the
leader in terms of imports; its share moved at about 44.6% of overall
imports in June. Dropped supply of Korea Petrochemical’s PE100
feedstock in May (down to 3.9 kt), began to rise in June (up to 4.98
kt). European PE100 imports were not high; however, in spite of the
better quality, prices for that feedstock are of major importance. Thus,
over the course of July, Basell Polyolfins’ PE100 was offered within the
range of RUB79.000-80.000/mt (USD3.385-3.425/mt), including VAT,
DDP Moscow. According to the results as at the end of the month,
selling prices were at the level of RUB64.000/mt (USD2.740/mt),
including VAT, EXW Kazan.
The LLDPE market is actively developing. Over the course of the
first six months, estimated LLDPE consumption moved at 42.6 kt,
which was by 28% more compared to the same period last year.
LLDPE imports decreased 19% compared to May. That fact can be
referred both to high prices for European feedstock and to big
feedstock volumes imported earlier. Over the course of the month,
prices for Exxon Mobil’s LLDPE varied within the range of RUB73.000–
74.000/mt (USD3.130–3.170/mt), including VAT, DDP St. Petersburg.
Many European producers report on increase in August selling
prices; however, market experts consider that increase will not
generate expected profit since there are many holidays in August, and
demand traditionally goes down during that period. Dow Europe
announced increase in August contract prices by EUR150/mt;
LyondellBasell made a similar declaration reporting on EUR100/mt
increase.
The situation in the HDPE market is aggravating. Due to a rushing
increase in prices demand has become much weaker. Import of
feedstock is insignificant and does not affect pricing. Some small
volumes of Asian HDPE are reportedly on the way now. July HDPE
prices were galloping upwards, having hiked from USD2.010/mt to
USD2.195/mt!!!, FD NWE, spot. LDPE and LLDPE prices rushed as well,
having reached the level of USD2.395/mt and USD2.410/mt, FD NWE,
spot, respectively.
Demand for polyethylene in Asia has become much weaker due to
high oil prices, lower demand on the part of China and overall slowing
down in the global economy. In July, regional HDPE and LLDPE prices
began to drop, whereas the LDPE market did not change due to tight
supply. Many market players expect new offers as to feedstock supply
in August. July HDPE prices varied within the range of USD1.755–
1.855/mt; film LDPE was offered at USD1.875–1.915/mt, CFR SEA. In
July, LLDPE prices began to drop as well being pressed by weak
demand in China. Korean suppliers demonstrate wait-and-see attitude
and keep their offers at the level of USD1.900/mt, CFR China, whereas
available volumes have been shipped to Latin America and Africa.
Domestic Market
Europe
Asia
Monthly Report. Russia. PE
August 5, 2008 5
LDPE: Consumption6, KT
Indexes Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3, % From the
beginning ofthe year4
Growth5, %
Production 51.25 38.05 33.58 47.62 61.67 59.12 63.55 61.88 58.05 62.62 54.09 56.21 60.53 18% 353.38 4%
Export 7.46 6.07 2.36 3.20 14.10 16.81 22.13 15.18 11.84 13.31 8.87 10.33 11.88 59% 71.42 27%
Import 4.20 4.62 4.51 5.12 5.56 3.03 2.97 1.98 3.09 3.14 3.99 3.95 5.14 22% 21.29 5%
Demand 47.99 36.60 35.73 49.54 53.13 45.34 44.38 48.67 49.30 52.45 49.21 49.83 53.79 12% 303.25 0%
Consumption, KT
0
14
28
42
56
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Production, KT
0
16
32
48
64
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Export, KT
0
4
8
12
16
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Import, KT
0
1.5
3
4.5
6
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Export to Production,%
0%
7%
14%
21%
28%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Import to Consumption,%
0%
4%
8%
12%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year 6 – not taking into account deliveries to Belarus and Belarus LDPE to Russia
General Indexes. LDPE
Monthly Report. Russia. PE
August 5, 2008 6 © MRC
Apparent Consumption4 (KT) and Growth5 (%)
0
75
150
225
300
2004 2005 2006 2007 2008-10
0
10
20
Production4 (KT) and Growth5 (%)
0
80
160
240
320
400
2004 2005 2006 2007 2008
-15
-5
5
Export4 (KT) and Growth5 (%)
0
30
60
90
120
2000 2001 2002 2003 2004 2005 2006 2007 2008
-50
-25
0
25
50
75
Import4 (KT) and Growth5 (%)
0
8
16
24
2000 2001 2002 2003 2004 2005 2006 2007 2008
-100
50
200
350
500
Export to Production4 (%)
0%
10%
20%
30%
40%
2004 2005 2006 2007 2008
Import to Apparent Consumption4 (%)
0%
3%
6%
9%
12%
2004 2005 2006 2007 2008
Net Export4 (KT) and Growth5 (%)
0
50
100
2000 2001 2002 2003 2004 2005 2006 2007 2008
-100
-50
0
50
LDPE Price1, domestic market, CPT Moscow (RUB/mt) and
Growth4 (%)
0
14000
28000
42000
2002 2003 2004 2005 2006 2007 2008
-10%
0%
10%
20%
30%
40%
50%
1 - average arithmetic domestic price, including customs duties and VAT, RUB, starting with the beginning of the year till the analyzed month (average index of no less than five domestic and foreign LDPE brands) 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year 6 – not taking into account deliveries to Belarus and Belarus LDPE to Russia
General Indexes6. LDPE
Monthly Report. Russia. PE
August 5, 2008 7 © MRC
LDPE: Consumption 6, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of thyear4
Growth5,%
2004 37.10 30.71 45.29 46.21 46.62 40.44 29.10 32.11 34.41 35.64 40.86 39.11 - 457.60 -
2005 40.39 32.04 39.66 37.11 48.35 46.87 31.89 29.48 43.89 44.52 44.40 49.08 16% 487.69 -1%
2006 39.23 37.82 42.45 45.08 53.25 43.34 29.83 35.25 36.55 48.50 51.21 50.88 -8% 513.38 7%
2007 52.62 45.26 50.04 53.36 53.20 47.99 36.60 35.73 49.54 53.13 45.34 44.38 11% 567.19 16%
2008 48.67 49.30 52.45 49.21 49.83 53.79 - - - - - - 12% 303.25 0%
LDPE: Production, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of thyear4
Growth5,%
2004 56.38 54.40 59.70 55.67 55.68 50.36 34.84 35.34 46.31 52.01 52.20 52.57 - 605.46 -
2005 51.89 45.65 52.38 48.67 54.84 50.36 31.51 33.67 51.23 51.40 49.68 51.81 - 573.07 -9%
2006 52.60 49.00 55.44 55.88 60.52 56.22 37.80 31.84 39.63 51.41 53.60 57.04 12% 600.97 9%
2007 59.61 55.22 58.23 57.48 56.63 51.25 38.05 33.58 47.62 61.67 59.12 63.55 -9% 642.01 3%
2008 61.88 58.05 62.62 54.09 56.21 60.53 - - - - - - 18% 353.38 4%
LDPE: Export6, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 17.15 20.64 25.40 20.08 18.36 17.69 14.34 5.62 7.96 16.84 8.80 9.10 - 181.97 -
2002 16.27 11.04 19.28 15.90 10.79 11.19 6.00 9.26 10.38 19.57 11.77 17.64 -37% 159.09 -29%
2003 23.70 19.80 19.37 14.40 16.49 12.26 9.16 4.07 12.98 19.98 17.09 28.46 10% 197.77 26%
2004 21.45 25.30 16.65 10.96 10.46 11.09 6.96 4.21 14.08 17.68 13.49 14.78 -10% 167.12 -10%
2005 12.14 14.96 13.86 12.92 7.65 5.19 1.69 5.26 9.42 9.86 6.69 4.93 -53% 104.56 -30%
2006 14.95 12.56 14.48 12.41 9.02 14.98 10.24 0.80 5.77 6.72 6.87 11.08 188% 119.88 18%
2007 9.29 12.90 11.35 7.18 8.10 7.46 6.07 2.36 3.20 14.10 16.81 22.13 -50% 120.96 -28%
2008 15.18 11.84 13.31 8.87 10.33 11.88 - - - - - - 59% 71.42 27%
LDPE: Import6, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 1.29 1.25 1.14 1.85 2.02 2.62 2.07 1.92 1.59 1.60 0.79 0.96 - 19.10 -
2002 1.76 1.90 1.60 1.70 1.27 1.36 1.29 0.91 1.44 1.60 1.26 1.28 -48% 17.38 -6%
2003 1.11 1.12 1.33 1.89 1.77 1.94 3.53 2.49 2.67 2.02 1.29 3.00 42% 24.16 -4%
2004 2.17 1.61 2.23 1.49 1.40 1.17 1.23 0.98 2.18 1.31 2.16 1.32 -40% 19.25 10%
2005 0.64 1.35 1.14 1.36 1.17 1.70 2.06 1.08 2.07 2.98 1.41 2.20 45% 19.18 -27%
2006 1.57 1.38 1.49 1.61 1.75 2.10 2.28 4.21 2.69 3.80 4.48 4.93 24% 32.29 34%
2007 2.31 2.95 3.16 3.06 4.66 4.20 4.62 4.51 5.12 5.56 3.03 2.97 100% 46.14 105%
2008 1.98 3.09 3.14 3.99 3.95 5.14 - - - - - - 22% 21.29 5%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year 6 – not taking into account deliveries to Belarus and Belarus LDPE to Russia
Monthly Report. Russia. PE
August 5, 2008 8 © MRC
Kazanorgsyntez, KT
0
6
12
18
24
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Kazanorgsyntez. Utilization of Capacities, %
0%
25%
50%
75%
100%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Tomskneftechem, KT
0
6
12
18
24
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Tomskneftechem. Utilization of Capacities, %
0%
25%
50%
75%
100%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Ufaorgsyntez, KT
0
2.25
4.5
6.75
9
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Ufaorgsyntez. Utilization of Capacities, %
0%
25%
50%
75%
100%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Angarsk Polymer Plant, KT
0
2
4
6
8
10
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Angarsk Polymer Plant. Utilization of Capacities, %
0%
25%
50%
75%
100%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Salavatnefteorgsyntez, KT
0
1
2
3
4
5
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Salavatnefteorgsyntez. Utilization of Capacities, %
0%
25%
50%
75%
100%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
NeftechemSevilen, KT
0
1
2
3
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
NeftechemSevilen. Utilization of Capacities, %
0%
25%
50%
75%
100%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
LDPE: Production and Utilization of Production Capacities by Companies
Monthly Report. Russia. PE
August 5, 2008 9 © MRC
LDPE: Production by Companies, KT
Producer Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
Tomskneftechem 19.90 7.90 2.64 20.13 20.62 19.99 22.39 21.05 19.68 22.53 20.97 21.46 23.14 16% 128.83 12%
Kazanorhsyntez 10.82 12.15 17.86 12.59 19.91 18.65 20.45 19.92 18.30 18.35 13.20 18.90 18.25 69% 106.92 11%
Ufaorgsyntez 6.96 8.21 8.32 7.45 6.53 6.91 7.24 7.32 7.67 8.01 6.98 2.21 6.83 -2% 39.02 -16%
Angarsk Polymers
Plant 6.91 5.27 0.60 7.15 7.37 6.95 6.85 6.87 6.55 7.18 6.60 7.05 6.85 -1% 41.10 0%
SNOS 4.08 3.90 4.13 0.22 4.62 3.91 3.95 4.03 3.81 3.97 3.73 3.87 3.88 -5% 23.30 -3%
Sevilen 2.58 0.62 0.02 0.08 2.62 2.72 2.67 2.68 2.03 2.58 2.62 2.72 1.58 -39% 14.22 -11%
Total 51.25 38.05 33.58 47.62 61.67 59.12 63.55 61.88 58.05 62.62 54.09 56.21 60.53 18% 353.38 4%
Production in the June 2008, %SNOS
(Salavatnefteorgsyntez)6%
Sevilen3%
Ufaorgsyntez11%
Angarsk Polymers Plant11%
Kazanorhsyntez30%
Tomskneftechem39%
Production in the June 2007, %
Sevilen5%
SNOS (Salavatnefteorgsyn
tez)8%
Angarsk Polymers Plant13%
Ufaorgsyntez14%
Kazanorhsyntez21%
Tomskneftechem39%
Production from the start of 20084, %
Ufaorgsyntez11%
Sevilen4%
SNOS (Salavatnefteorgsyn
tez)7%
Angarsk Polymers Plant12%
Kazanorhsyntez30%
Tomskneftechem36%
Production from the start of 20074, %
Sevilen5%SNOS
(Salavatnefteorgsyntez)7%
Angarsk Polymers Plant12%
Ufaorgsyntez14%
Kazanorhsyntez28%
Tomskneftechem34%
Production in 2007, %
Sevilen4%
Tomskneftechem32%
Kazanorhsyntez31%
Ufaorgsyntez14%
SNOS (Salavatnefteorgsyn
tez)7%
Angarsk Polymers Plant12%
Production in 2006, %
Sevilen5%
Tomskneftechem32%
Kazanorhsyntez31%
Ufaorgsyntez14%
SNOS (Salavatnefteorgsyn
tez)7%
Angarsk Polymers Plant11%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year
LDPE: Production by Companies , %
Monthly Report. Russia. PE
August 5, 2008 10 © MRC
Kazanorgsyntez. Production of LDPE, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of the year4
Growth5,%
2004 19.45 19.18 20.63 19.50 18.36 14.55 14.79 14.50 14.33 15.60 16.02 15.29 - 202.18 -
2005 14.38 10.28 13.36 11.53 15.62 13.92 12.41 15.61 13.21 14.79 13.19 17.81 -4% 166.10 -29%
2006 15.78 17.67 19.23 18.38 21.00 16.96 14.57 8.32 9.45 12.71 13.76 16.50 22% 184.34 38%
2007 19.86 17.96 15.93 16.80 15.04 10.82 12.15 17.86 12.59 19.91 18.65 20.45 -36% 198.02 -12%
2008 19.92 18.30 18.35 13.20 18.90 18.25 - - - - - - 69% 106.92 11%
Tomskneftechem. Production of LDPE, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of the year4
Growth5,%
2004 16.37 15.11 17.47 15.47 16.41 16.17 5.63 6.53 16.94 16.79 16.24 16.99 - 176.12 -
2005 16.61 15.41 17.35 16.30 18.05 17.01 4.74 5.40 17.47 16.84 16.88 15.48 5% 177.55 4%
2006 15.73 14.80 18.12 17.47 18.06 18.13 7.81 7.20 18.17 19.11 18.07 19.30 7% 191.98 2%
2007 18.63 17.62 20.01 19.10 19.38 19.90 7.90 2.64 20.13 20.62 19.99 22.39 10% 208.31 12%
2008 21.05 19.68 22.53 20.97 21.46 23.14 - - - - - - 16% 128.83 12%
Ufaorgsyntez. Production of LDPE, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of the year4
Growth5,%
2004 7.11 6.91 7.88 7.62 7.71 7.49 7.70 6.38 1.40 5.77 6.51 7.31 - 79.79 -
2005 7.47 7.15 7.62 7.54 7.72 7.06 6.38 7.36 6.72 7.74 7.00 6.78 -6% 86.54 0%
2006 8.01 6.32 6.90 6.71 7.81 7.96 8.14 6.02 1.46 7.72 7.91 7.45 13% 82.42 -2%
2007 7.82 6.97 8.25 8.28 8.19 6.96 8.21 8.32 7.45 6.53 6.91 7.24 -13% 91.13 6%
2008 7.32 7.67 8.01 6.98 2.21 6.83 - - - - - - -2% 39.02 -16%
Angarsk Polymer Plant. Production of LDPE, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of the year4
Growth5,%
2004 6.46 6.47 6.90 6.41 6.46 6.75 3.15 2.94 6.71 7.08 6.75 6.48 - 72.56 -
2005 6.40 6.60 7.01 6.40 6.65 6.90 2.21 2.50 6.80 5.45 6.05 5.63 2% 68.61 1%
2006 6.35 4.43 5.25 6.80 6.90 6.77 0.53 3.37 6.81 7.42 7.10 7.13 -2% 68.85 -9%
2007 6.60 6.55 7.10 6.65 7.10 6.91 5.27 0.60 7.15 7.37 6.95 6.85 2% 75.10 12%
2008 6.87 6.55 7.18 6.60 7.05 6.85 - - - - - - -1% 41.10 0%
Salavatnefteorgsyntez. Production of LDPE, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of the year4
Growth5,%
2004 4.37 4.08 4.10 4.05 4.07 3.81 2.49 2.04 4.05 4.38 4.18 4.29 - 45.92 -
2005 4.39 3.90 4.22 4.10 4.20 3.79 4.19 - 4.16 4.17 3.81 3.90 -1% 44.83 -
2006 4.34 3.59 3.75 3.90 4.10 3.89 4.02 4.40 1.13 1.89 4.13 4.00 3% 43.14 -4%
2007 3.83 3.78 4.25 3.94 4.18 4.08 3.90 4.13 0.22 4.62 3.91 3.95 5% 44.79 2%
2008 4.03 3.81 3.97 3.73 3.87 3.88 - - - - - - -5% 23.30 -3%
NeftechemSevilen. Production of LDPE, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of the year4
Growth5,%
2004 2.63 2.65 2.73 2.62 2.69 1.59 1.08 2.95 2.87 2.38 2.49 2.21 - 28.89 -
2005 2.64 2.31 2.82 2.80 2.60 1.68 1.57 2.80 2.87 2.40 2.75 2.21 6% 29.45 -
2006 2.39 2.19 2.19 2.62 2.65 2.51 2.72 2.52 2.61 2.57 2.63 2.65 49% 30.25 -2%
2007 2.88 2.34 2.69 2.71 2.73 2.58 0.62 0.02 0.08 2.62 2.72 2.67 3% 24.66 9%
2008 2.68 2.03 2.58 2.62 2.72 1.58 - - - - - - -39% 14.22 -11%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year
Monthly Report. Russia. PE
August 5, 2008 11 © MRC
Export to countries in the June 2008, %
Hungary3%
Uzbekistan2%
others7%
Turkey5%
Kazakhstan13%
China31%
Ukraine39%
Export to countries in the June 2007, %Kyrgyzstan
2% Lithuania1%
others1%
China8%
Turkey5%
Kazakhstan16%
Ukraine67%
Export to countries from the start of 20084, %
Hungary2%
others7%
Lithuania4%
Uzbekistan3%
Turkey5%
Kazakhstan10%
Ukraine32%
China37%
Export to countries from the start of 20074, %
Lithuania2%
Uzbekistan2%
Italy2%
others8%
Turkey2%
Kazakhstan16%
China16%
Ukraine52%
Export by producers in the June 2008, %
Kazanorhsyntez42%
Tomskneftechem58%
Export by producers in the June 2007, %
Ufaorgsyntez1%
Kazanorhsyntez28%
Tomskneftechem71%
Export by producers from the start of 20084, %
others1%SNOS
(Salavatnefteorgsyntez)4%
Angarsk Polymers Plant2%
Kazanorhsyntez32%
Tomskneftechem61%
Export by producers from the start of 20074, %Ufaorgsyntez
1%Angarsk Polymers
Plant5%SNOS
(Salavatnefteorgsyntez)
12%
Tomskneftechem39%
Kazanorhsyntez43%
4 – from the beginning of the year up to the analyzed month inclusive 6 – not taking into account LDPE export to Belarus
LDPE: Export6 by Countries, %
LDPE: Export6 by Companies, %
Monthly Report. Russia. PE
August 5, 2008 12 © MRC
LDPE: Export6 by Countries, KT
Country Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
China 0.63 - - - 4.18 7.74 9.38 6.58 4.28 4.83 4.32 3.60 3.74 493% 27.34 198%
Ukraine 5.00 2.87 0.89 1.54 5.94 5.43 4.96 4.14 3.54 3.96 2.44 3.96 4.53 -9% 22.57 -23%
Kazakhstan 1.18 1.85 0.76 1.23 1.44 1.06 0.90 0.51 0.94 1.17 1.05 1.72 1.55 32% 6.93 -21%
Turkey 0.34 0.18 - - 0.14 0.78 1.87 1.14 1.08 0.42 0.05 - 0.60 78% 3.29 152%
Lithuania 0.11 0.02 0.04 0.02 0.42 0.48 0.88 1.31 0.21 0.28 0.45 0.38 0.12 6% 2.75 127%
Uzbekistan 0.05 0.64 0.09 0.10 0.97 0.29 0.10 - 0.14 1.55 0.05 0.05 0.24 394% 2.02 83%
Hungary - 0.05 0.14 0.10 0.14 - 1.11 0.29 0.43 0.10 - 0.10 0.38 - 1.30 69%
others 0.16 0.47 0.43 0.22 0.86 1.03 2.93 1.22 1.23 1.00 0.51 0.53 0.73 357% 5.21 15%
Total 7.46 6.07 2.36 3.20 14.10 16.81 22.13 15.18 11.84 13.31 8.87 10.33 11.88 59% 71.42 27%
-
LDPE: Export6 by Companies, KT
Producer Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
Tomskneftechem 5.24 3.33 - 1.67 7.43 8.91 10.86 8.86 6.21 7.15 7.15 7.14 6.81 30% 43.34 98%
Kazanorhsyntez 2.04 2.38 1.89 1.43 5.49 6.64 9.32 4.36 4.37 4.44 1.61 3.06 4.97 143% 22.81 -4%
SNOS - 0.29 0.29 - 0.91 1.20 1.87 1.82 1.20 0.05 - - - - 3.07 -55%
Angarsk Polymers
Plant - - - - - 0.01 0.01 0.01 - 1.52 0.02 0.02 0.02 - 1.59 -48%
Ufaorgsyntez 0.09 - - - 0.15 - - 0.05 - - - - - - 0.05 -89%
others 0.09 0.07 0.19 0.10 0.12 0.06 0.08 0.08 0.06 0.14 0.09 0.11 0.09 -6% 0.45 25%
Total 7.46 6.07 2.36 3.20 14.10 16.81 22.13 15.18 11.84 13.31 8.87 10.33 11.88 59% 71.42 27%
Export 6of LDPE. Kazanorgsyntez, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 2.98 5.77 4.78 4.67 2.97 1.93 2.53 1.48 2.04 2.12 2.02 3.77 - 37.06 -
2002 1.51 1.25 2.64 1.97 1.89 1.75 1.00 0.60 1.69 4.37 2.92 1.62 -9% 23.24 -52%
2003 3.46 2.24 3.90 4.54 5.28 5.13 6.40 2.10 2.77 6.31 6.58 6.66 192% 55.36 122%
2004 4.67 9.00 6.09 3.11 2.49 1.75 1.15 1.46 3.47 5.37 2.62 3.61 -66% 44.80 10%
2005 4.64 4.09 2.46 1.63 1.06 0.62 0.84 5.16 2.19 2.68 2.66 0.59 -65% 28.61 -47%
2006 5.82 5.22 2.56 4.61 4.55 3.59 3.42 0.58 0.84 1.21 1.77 4.91 481% 39.08 82%
2007 2.84 5.17 5.48 4.21 3.91 2.04 2.38 1.89 1.43 5.49 6.64 9.32 -43% 50.81 -10%
2008 4.36 4.37 4.44 1.61 3.06 4.97 - - - - - - 143% 22.81 -4%
Export6 of LDPE. Tomskneftechem, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 8.40 8.30 9.10 8.25 8.56 10.25 3.42 0.14 4.09 8.16 3.29 1.30 - 73.26 -
2002 7.19 6.76 9.46 8.77 5.14 4.81 1.22 6.55 7.43 8.53 5.74 8.59 -53% 80.18 -20%
2003 10.87 7.88 8.45 5.18 6.05 4.42 0.36 1.35 6.15 6.83 4.37 8.92 -8% 70.83 2%
2004 8.19 7.66 5.68 4.68 4.67 6.07 0.54 1.82 5.79 8.05 5.90 6.29 37% 65.36 -14%
2005 3.69 5.44 6.81 7.57 3.37 4.45 0.75 - 6.78 6.53 3.16 4.00 -27% 52.56 -15%
2006 5.13 5.26 7.51 5.11 3.24 10.08 4.95 - 4.54 4.44 4.50 4.37 127% 59.15 16%
2007 4.23 5.30 1.96 1.53 3.61 5.24 3.33 - 1.67 7.43 8.91 10.86 -48% 54.05 -40%
2008 8.86 6.21 7.15 7.15 7.14 6.81 - - - - - - 30% 43.34 98%
6 – not taking into account LDPE export to Belarus
Monthly Report. Russia. PE
August 5, 2008 13 © MRC
Export6 of LDPE. Ufaorgsyntez, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 2.82 2.64 2.57 1.28 0.74 0.20 2.56 1.51 1.05 0.80 - - - 16.18 -
2002 0.01 - - 0.02 0.04 0.07 0.20 0.24 0.10 0.04 0.03 0.06 -65% 0.81 -99%
2003 2.27 3.94 1.53 0.44 0.02 0.03 0.02 0.02 0.03 - - - -52% 8.31 -
2004 0.52 0.27 0.14 - - - - 0.83 0.13 - - - - 1.87 -89%
2005 0.00 - 0.01 - - - - 0.02 - - - - - 0.03 -99%
2006 - 0.04 0.10 0.01 - 0.07 - 0.04 - - - 0.04 - 0.31 -
2007 - 0.09 0.09 0.09 0.08 0.09 - - - 0.15 - - 38% 0.58 96%
2008 0.05 - - - - - - - - - - - - 0.05 -89%
Export6 of LDPE. Angarsk Polymer Plant, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 2.01 2.62 6.75 4.20 4.98 4.77 4.41 1.15 0.57 5.70 2.42 3.42 - 42.99 -
2002 7.52 3.02 4.57 3.56 3.05 2.89 2.10 1.60 0.53 4.90 1.50 4.70 -39% 39.93 -3%
2003 4.50 2.50 2.85 1.40 3.30 1.55 1.55 0.50 2.80 5.25 3.85 9.95 -46% 40.00 -35%
2004 5.75 6.35 3.60 2.16 2.88 1.99 4.64 0.03 2.45 2.67 3.75 2.80 28% 39.06 41%
2005 2.01 4.00 3.21 2.80 3.00 - 0.06 - - 0.20 0.25 0.05 - 15.58 -34%
2006 2.23 0.50 2.71 1.55 0.50 0.58 1.00 0.10 0.33 1.00 0.50 0.40 - 11.40 -46%
2007 - 1.05 2.00 - - - - - - - 0.01 0.01 - 3.06 -62%
2008 0.01 - 1.52 0.02 0.02 0.02 - - - - - - - 1.59 -48%
Export6 of LDPE. Salavatnefteorgsyntez, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 0.82 1.17 1.96 1.53 1.05 0.54 1.41 1.31 0.17 0.02 1.05 0.61 - 11.65 -
2002 0.02 0.02 2.57 1.57 0.62 1.62 1.04 0.04 0.45 1.69 1.16 2.41 201% 13.21 -9%
2003 2.32 2.39 2.08 1.95 1.05 0.97 0.82 - 1.17 1.59 2.27 2.88 -40% 19.51 68%
2004 2.28 1.98 1.12 0.95 0.39 1.25 0.51 0.02 2.16 1.51 1.07 1.93 28% 15.15 -26%
2005 1.75 1.37 1.33 0.86 0.21 0.07 - 0.04 0.43 0.41 0.60 0.26 -94% 7.34 -30%
2006 1.76 1.51 1.55 1.12 0.69 0.59 0.83 - - - - 1.30 - 9.34 29%
2007 2.16 1.25 1.80 1.20 0.38 - 0.29 0.29 - 0.91 1.20 1.87 - 11.36 -6%
2008 1.82 1.20 0.05 - - - - - - - - - - 3.07 -55%
Export6 of LDPE. NeftechemSevilen, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 0.10 0.15 0.17 0.01 - - - - - - - - - 0.44 -
2002 - - - - - - 0.36 0.16 0.19 0.04 0.40 0.26 - 1.41 -
2003 0.28 0.76 0.55 0.87 0.78 0.14 - 0.09 - - - - - 3.48 -
2004 - - - - - - - - - - - - - - -
2005 - - - - - - - - - 0.02 - - - 0.02 -
2006 - - - - - 0.02 - - - - - - - 0.02 -
2007 - - - - - - - - - - - - - - -
2008 - - - - - - - - - - - - - - -
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year 6 – not taking into account LDPE export to Belarus
Monthly Report. Russia. PE
August 5, 2008 14 © MRC
Export6 of LDPE by Countries. Kazanorgsyntez, KT
Country Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
Ukraine 1.34 0.91 0.58 0.58 3.12 3.79 2.54 1.58 1.34 1.87 0.96 1.78 2.26 68% 9.79 -28%
Kazakhstan 0.29 0.72 0.72 0.47 0.72 0.53 0.60 0.44 0.79 0.64 0.19 0.76 0.69 137% 3.51 0%
Turkey 0.34 0.18 - - 0.14 0.78 1.34 1.14 0.79 0.42 0.05 - 0.60 78% 3.00 130%
Hungary - 0.05 0.14 0.10 0.14 - 1.11 0.29 0.43 0.10 - 0.10 0.38 - 1.30 69%
Lithuania - - - - 0.38 0.48 0.86 - 0.19 0.19 - - 0.10 - 0.48 -44%
Latvia - - 0.10 - - 0.29 0.86 0.10 0.19 0.05 0.05 0.14 0.19 - 0.72 87%
Azerbaijan - - 0.14 0.10 0.43 0.24 0.38 - - 0.38 0.10 0.10 0.05 - 0.62 51%
Uzbekistan 0.05 0.10 0.05 0.10 0.29 0.14 0.10 - 0.05 0.34 0.05 0.05 0.24 394% 0.72 199%
Poland - 0.14 - - 0.04 0.04 0.29 0.29 - 0.04 - - 0.14 - 0.47 2%
others 0.02 0.28 0.16 0.10 0.22 0.34 1.23 0.51 0.59 0.42 0.22 0.14 0.32 - 2.19 8%
Total 2.04 2.38 1.89 1.43 5.49 6.64 9.32 4.36 4.37 4.44 1.61 3.06 4.97 143% 22.81 -4%
Export6 of LDPE by Countries. Tomskneftechem, KT
Country Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
China 0.63 - - - 4.18 7.74 9.04 6.39 4.28 3.33 4.32 3.60 3.73 493% 25.65 482%
Ukraine 3.64 1.67 - 0.94 1.98 0.67 1.53 1.30 1.62 2.07 1.49 2.19 2.25 -38% 10.92 -3%
Kazakhstan 0.83 1.08 - 0.72 0.67 0.49 0.28 0.04 0.14 0.45 0.81 0.86 0.82 -1% 3.13 -37%
Uzbekistan - 0.54 - - 0.58 - - - 0.09 1.21 - - - - 1.30 93%
Lithuania 0.09 - - - - - - 1.13 - 0.09 0.45 0.36 - - 2.02 650%
Kyrgyzstan 0.04 0.04 - - - - - - 0.09 - 0.09 0.04 - - 0.22 25%
Azerbaijan - - - - - - - - - - - 0.09 - - 0.09 -
Total 5.24 3.33 - 1.67 7.43 8.91 10.86 8.86 6.21 7.15 7.15 7.15 6.81 30% 43.34 98%
Export6 of LDPE by Countries. Ufaorgsyntez, KT
Country Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
Kyrgyzstan 0.09 - - - 0.05 - - 0.05 - - - - - - 0.05 -89%
Uzbekistan - - - - 0.10 - - - - - - - - - - -
Total 0.09 - - - 0.15 - - 0.05 - - - - - - 0.05 -89%
Export6 of LDPE by Countries. Angarsk Polymer Plant, KT.
Country Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
China - - - - - - - - - 1.50 - - - - 1.50 -50%
Mongolia - - - - - - - 0.01 - 0.02 0.02 0.02 0.02 - 0.09 -
others - - - - - 0.01 0.01 - - - - - - - - -
Total - - - - - 0.01 0.01 0.01 - 1.52 0.02 0.02 0.02 - 1.59 -48%
Export6 of LDPE by Countries. Salavatnefteorgsyntez, KT
Country Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
Ukraine - 0.29 0.29 - 0.82 0.96 0.86 1.25 0.58 - - - - - 1.82 -59%
Turkey - - - - - - 0.53 - 0.29 - - - - - 0.29 -
Latvia - - - - 0.10 0.10 0.14 0.10 0.10 - - - - - 0.19 -
China - - - - - - 0.34 0.19 - - - - - - 0.19 -89%
Kyrgyzstan - - - - - - - 0.14 0.10 - - - - - 0.24 -
Azerbaijan - - - - - - - - 0.14 0.05 - - - - 0.19 -
others - - - - - 0.14 - 0.14 - - - - - - 0.14 -74%
Total - 0.29 0.29 - 0.92 1.20 1.87 1.82 1.20 0.05 - - - - 3.07 -55%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year 6 – not taking into account LDPE export to Belarus
Monthly Report. Russia. PE
August 5, 2008 15 © MRC
LDPE: Import6 by Producers, KT
Producer Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
Borealis 1.50 1.93 1.72 1.25 1.82 0.95 1.68 0.99 1.59 1.05 1.26 1.31 1.05 -30% 7.25 -21%
Dow 1.10 1.54 1.39 2.13 1.86 0.21 0.08 0.00 0.21 0.04 0.13 0.05 0.10 -91% 0.53 -87%
Ineos Polyolefins 0.20 0.10 0.29 0.48 0.90 0.55 0.27 0.42 0.49 0.98 1.21 0.63 0.89 336% 4.63 459%
Exxon Mobil 0.46 0.67 0.58 0.46 0.44 0.51 0.29 0.30 0.33 0.45 0.67 0.52 0.49 6% 2.76 24%
Ethylene-Polyethylene
0.18 - - - - 0.09 0.14 - - 0.09 0.14 0.85 1.92 - 3.00 640%
Gabriel-Chemie 0.09 0.04 0.03 0.05 0.01 0.05 0.03 0.04 0.04 0.04 0.05 0.02 0.04 -55% 0.23 -19%
MPB 0.10 - 0.19 0.10 - - - - - - - - 0.10 - 0.10 -50%
Sabic - - - 0.02 0.07 - 0.10 - - 0.05 0.01 0.02 0.10 - 0.18 -33%
others 0.32 0.24 0.18 0.51 0.36 0.50 0.21 0.12 0.25 0.34 0.43 0.42 0.41 29% 0.85 26%
Total 3.95 4.51 4.39 4.99 5.46 2.85 2.78 1.88 2.91 3.04 3.88 3.83 5.10 29% 20.65 4%
Import by Producers in the June 2008, %
Dow2%
Sabic2%
MPB2%
others10%
Exxon Mobil9%
Ineos Polyolefins17%
Borealis20%
Ethylene-Polyethylene,
Sumgait38%
Import by Producers in the June 2007, %
Ethylene-Polyethylene,
Sumgait4%
MPB2%
others10%
Ineos Polyolefins5%
Basell Polyolefins6%
Exxon Mobil11%
Dow
Borealis36%
Import by Producers from the start of 20084, %Hyundai
Petrochemical1%
Gabriel-Chemie1%
Exxon Mobil13%
Basell Polyolefins3%
Dow2%
others10%
Ethylene-Polyethylene,
Sumgait14%
Ineos Polyolefins22%
Borealis34%
Import by Producers from the start of 20074, %
LG2%
others11%
Ineos Polyolefins4%
Exxon Mobil12%
Dow22%
Borealis49%
Import by Producers in 2007, %
Ethylene-Polyethylene,
Sumgait1%
Gabriel-Chemie1%
others9%
Ineos Polyolefins8%
LG1%
Exxon Mobil12%
Dow26%
Borealis41%
Import by Producers in 2006, %
Gabriel-Chemie3%
others11%
MPB2%
Sabic4%
Dow9%
Ethylene-Polyethylene,
Sumgait12%
Exxon Mobil14%
Borealis45%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year 6 – not taking into account LDPE import from Belarus
LDPE: Import6 by Producers, %
Monthly Report. Russia. PE
August 5, 2008 16 © MRC
LDPE: Import6 by Countries, KT
Country Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning ofthe year4
Growth5,%
Belgium 1.18 0.88 1.09 2.30 2.04 0.70 0.52 0.45 0.51 0.40 0.71 0.66 0.59 -50% 3.31 -10%
Germany 0.50 0.36 0.38 0.53 0.82 0.59 0.32 0.34 0.53 0.98 1.12 0.63 0.83 67% 4.44 119%
Netherlands 0.48 1.18 1.01 0.40 0.29 0.03 0.41 0.02 0.33 0.41 0.44 0.31 0.60 23% 2.10 -19%
Sweden 0.37 0.59 0.34 0.47 0.75 0.31 0.51 0.41 0.59 0.24 0.31 0.29 0.19 -50% 2.03 -7%
Finland 0.28 0.54 0.62 0.37 0.50 0.31 0.31 0.24 0.39 0.26 0.39 0.35 0.17 -38% 1.81 -42%
Azerbaijan 0.18 - - - - 0.09 0.14 - - 0.09 0.14 0.85 1.92 - 3.00 640%
Austria 0.23 0.20 0.05 0.15 0.07 0.17 0.22 0.19 0.17 0.15 0.20 0.26 0.19 -17% 1.17 -1%
Norway 0.25 0.15 0.28 0.05 0.10 0.02 0.12 0.10 0.08 0.04 0.15 0.08 0.12 -54% 0.56 -44%
Switzerland 0.09 0.39 0.28 0.14 0.40 0.11 - - - - 0.00 - 0.02 -79% 0.02 -98%
China 0.07 0.03 0.02 0.10 0.08 0.10 0.11 0.06 0.20 0.15 0.15 0.14 0.18 146% 0.88 283%
others 0.56 0.29 0.45 0.62 0.50 0.60 0.32 0.18 0.30 0.41 0.38 0.37 0.34 -39% 1.14 -29%
Total 4.20 4.62 4.51 5.12 5.56 3.03 2.97 1.98 3.09 3.14 3.99 3.95 5.14 22% 21.29 5%
Import by countries in the June 2008, %
Germany16%
Azerbaijan38%
Belgium11%
Netherlands12%
China3%
Austria4%
Sweden4%
others9%Finland
3%
Import by countries in the June 2007, %
Germany12%
Belgium27%
Sweden9%
Netherlands12%
Austria6%
Finland7%
Norway6%
others21%
Import by countries from the start of 20084, %
China4%
others12%
Finland9%
Sweden10%
Austria6%
Azerbaijan14%
Netherlands10%
Germany20%
Belgium15%
Import by countries from the start of 20074, %
others21%
Finland15%
Belgium18%
Sweden11%
Netherlands13%
Switzerland6%
Germany10%
Austria6%
Import in 2007, %
South Korea3%
others12%
Norway4%
Netherlands13%
Belgium24%
Sweden11%
Finland13%
Austria4%
Germany11%
Switzerland5%
Import in 2006, %
others22%
Finland12%
Belgium22%
Sweden10%
Azerbaijan12%
Austria7%
Germany8%
Netherlands7%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year 6 – not taking into account LDPE import from Belarus
LDPE: Import6 by Countries, %
Monthly Report. Russia. PE
August 5, 2008 17 © MRC
HDPE: Consumption, KT
Indexes Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning ofthe year4
Growth5,%
production 54.77 48.60 53.78 51.12 55.84 57.18 53.36 56.59 49.74 48.52 44.51 50.43 51.81 -5% 301.61 8%
Import 27.83 30.80 29.31 23.97 28.57 22.58 21.22 17.55 26.66 20.51 23.28 20.55 20.55 -26% 129.11 -9%
Export 5.54 4.11 6.26 7.24 9.78 11.87 15.01 12.56 8.57 5.76 2.14 4.51 5.34 -4% 38.88 9%
Demand 77.05 75.28 76.84 67.84 74.64 67.88 59.57 61.59 67.83 63.27 65.65 66.47 67.02 -13% 391.83 2%
Consumption, KT
0
20
40
60
80
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Production, KT
0
16
32
48
64
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Export, KT
0
3.5
7
10.5
14
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Import, KT
0
8
16
24
32
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Export to Production,%
0%
5%
10%
15%
20%
25%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Import to Consumption,%
0%
16%
32%
48%
64%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
6 – not taking into account HDPE export to Belarus
General Indexes. HDPE
Monthly Report. Russia. PE
August 5, 2008 18 © MRC
Consumption4 (KT) and Growth5 (%)
0
100
200
300
400
2004 2005 2006 2007 2008
0
10
20
30
40
Production4 (KT) and Growth5 (%)
0
50
100
150
200
2004 2005 2006 2007 2008-20
0
20
40
Import4 (KT) and Growth5 (%)
0
30
60
90
120
2000 2001 2002 2003 2004 2005 2006 2007 2008
-70
0
70
Export4 (KT) and Growth5 (%)
0
30
60
90
120
150
2000 2001 2002 2003 2004 2005 2006 2007 2008
-50
50
150
250
Export to Production4 (%)
0%
5%
10%
15%
20%
25%
2004 2005 2006 2007 2008
Import to Apparent Consumption4 (%)
0%
10%
20%
30%
40%
2004 2005 2006 2007 2008
Net Export4 (KT) and Growth5 (%)
-150
-100
-50
0
50
100
150
2000 2001 2002 2003 2004 2005 2006 2007 2008
-400
-200
0
200
400
HDPE Price1, domestic market, CPT Moscow (RUB/mt) and
Growth4 (%)
0
15000
30000
45000
60000
2002 2003 2004 2005 2006 2007 2008
-10%
0%
10%
20%
30%
40%
50%
1 - average arithmetic domestic price, including customs duties and VAT, RUB, starting with the beginning of the year till the analyzed month (average index of no less than five domestic and foreign HDPE brands) 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year 6 – not taking into account HDPE export to Belarus
General Indexes. HDPE
Monthly Report. Russia. PE
August 5, 2008 19 © MRC
HDPE: Consumption6, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of the year4
Growth5,%
2004 25.81 24.95 48.39 45.19 49.56 35.63 32.63 42.59 41.41 38.30 37.44 41.58 - 463.49 -
2005 38.43 33.89 41.32 42.07 47.61 48.99 40.45 56.72 50.10 53.53 44.11 55.49 37% 552.70 10%
2006 45.76 45.30 50.12 47.45 55.18 31.64 38.23 52.75 62.53 79.35 79.60 73.23 -35% 661.13 9%
2007 66.22 63.47 50.32 63.33 65.17 77.05 75.28 76.84 67.84 74.64 67.88 59.57 144% 807.62 40%
2008 61.59 67.83 63.27 65.65 66.47 67.02 - - - - - - -13% 391.83 2%
HDPE: Production, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of the year4
Growth5,%
2004 44.93 32.24 46.66 45.22 44.23 23.73 19.32 39.91 40.49 42.39 40.97 40.41 - 460.52 -
2005 41.84 36.37 40.49 37.49 41.97 39.47 29.36 43.19 39.18 42.10 38.66 43.46 66% 473.58 -
2006 45.53 40.84 40.13 31.59 41.81 12.99 22.21 31.32 39.86 51.13 53.78 62.49 -67% 473.68 -10%
2007 59.14 50.99 35.66 42.31 36.56 54.77 48.60 53.78 51.12 55.84 57.18 53.36 321% 599.31 31%
2008 56.59 49.74 48.52 44.51 50.43 51.81 - - - - - - -5% 301.61 8%
HDPE: Export6, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 20.33 17.81 22.64 19.99 17.42 16.52 8.96 3.00 2.09 2.24 0.00 - - 131.01 -
2002 19.84 19.15 19.41 25.80 15.85 3.45 4.81 20.71 18.45 19.24 10.78 15.81 -79% 193.31 -10%
2003 17.09 8.97 15.32 16.51 11.94 5.32 3.10 10.13 11.00 14.30 23.58 27.03 54% 164.29 -27%
2004 22.91 11.65 3.67 5.02 2.65 1.14 0.09 6.44 4.67 9.76 8.71 5.27 -79% 81.97 -37%
2005 8.28 5.16 4.05 2.14 2.57 1.17 1.24 1.49 2.10 3.04 3.73 1.53 3% 36.50 -50%
2006 5.69 5.37 4.74 3.00 2.34 0.64 0.94 1.43 1.51 1.70 2.50 12.33 -45% 42.19 -7%
2007 7.64 9.36 7.98 3.13 2.08 5.54 4.11 6.26 7.24 9.78 11.87 15.01 - 89.99 64%
2008 12.56 8.57 5.76 2.14 4.51 5.34 - - - - - - -4% 38.88 9%
HDPE: Import, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 2.88 2.52 3.24 1.86 1.58 0.93 1.63 1.23 2.62 1.39 0.14 0.48 - 20.50 -
2002 2.48 3.15 1.78 2.30 1.91 1.53 2.22 2.47 2.32 3.55 2.30 1.18 65% 27.20 1%
2003 1.11 2.05 2.34 2.20 3.91 10.63 15.51 8.44 5.45 6.85 5.12 6.26 592% 69.86 69%
2004 3.79 4.36 5.40 4.99 7.99 13.04 13.41 9.11 5.59 5.66 5.18 6.43 23% 84.94 78%
2005 4.87 2.68 4.87 6.72 8.21 10.69 12.32 15.02 13.02 14.47 9.18 13.56 -18% 115.63 -4%
2006 5.92 9.82 14.74 18.86 15.71 19.29 16.96 22.86 24.18 29.92 28.32 23.06 80% 229.64 122%
2007 14.72 21.83 22.64 24.15 30.69 27.83 30.80 29.31 23.97 28.57 22.58 21.22 44% 298.31 68%
2008 17.55 26.66 20.51 23.28 20.55 20.55 - - - - - - -26% 129.11 -9%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year 6 – not taking into account HDPE export to Belarus
Monthly Report. Russia. PE
August 5, 2008 20 © MRC
Kazanorgsyntez. Production of HDPE, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of the year4
Growth5,%
2004 17.94 17.69 19.03 17.99 16.93 13.42 13.64 13.37 13.22 14.39 14.78 14.10 - 186.50 -
2005 14.34 10.25 13.32 11.50 15.58 13.89 12.38 15.57 13.18 14.75 13.15 17.76 3% 165.68 -23%
2006 18.38 15.96 12.91 4.90 15.71 12.99 13.25 10.21 16.65 23.41 27.29 34.25 -6% 205.90 2%
2007 31.37 26.13 15.30 18.95 11.51 29.29 22.54 26.63 28.31 30.40 29.78 27.43 125% 297.65 64%
2008 30.33 27.15 21.81 18.82 23.80 28.08 - - - - - - -4% 149.99 13%
Stavrolen. Production of HDPE, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning of the year4
Growth5,%
2004 26.99 14.55 27.63 27.23 27.29 10.31 5.68 26.54 27.27 28.00 26.19 26.31 - 274.02 -
2005 27.49 26.13 27.17 25.99 26.39 25.58 16.99 27.62 26.00 27.35 25.51 25.70 148% 307.90 18%
2006 27.15 24.89 27.22 26.70 26.10 - 8.96 21.11 23.21 27.72 26.49 28.24 - 267.78 -17%
2007 27.77 24.87 20.36 23.36 25.06 25.47 26.06 27.15 22.81 25.44 27.39 25.93 - 301.66 11%
2008 26.26 22.59 26.71 25.69 26.63 23.73 - - - - - - -7% 151.62 3%
Kazanorgsyntez, КТ
0
10
20
30
40
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Kazanorgsyntez. Utilization of Capacities, %
0%
25%
50%
75%
100%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Stavrolen, KT
0
8
16
24
32
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Stavrolen. Utilization of Capacities, %
75%
100%
Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year
HDPE: Production and Utilization of Production Capacities by Companies
Monthly Report. Russia. PE
August 5, 2008 21 © MRC
HDPE: Production by companies, KT
Producer Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
Kazanorhsyntez 29.29 22.54 26.63 28.31 30.40 29.78 27.43 30.33 27.15 21.81 18.82 23.80 28.08 -4% 149.99 13%
Stavrolen 25.47 26.06 27.15 22.81 25.44 27.39 25.93 26.26 22.59 26.71 25.69 26.63 23.73 -7% 151.62 3%
Total 54.77 48.60 53.78 51.12 55.84 57.18 53.36 56.59 49.74 48.52 44.51 50.43 51.81 -5% 301.61 8%
Production in the June 2008, %
Stavrolen46% Kazanorhsyntez
54%
Production in the June 2007, %
Stavrolen47%
Kazanorhsyntez53%
Production from the start of 20084, %
Stavrolen50%
Kazanorhsyntez50%
Production from the start of 20074, %
Kazanorhsyntez47%
Stavrolen53%
Production in 2007, %
Kazanorhsyntez50%
Stavrolen50%
Production in 2006, %
Kazanorhsyntez43%
Stavrolen57%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year
HDPE: Production by Companies, %
Monthly Report. Russia. PE
August 5, 2008 22 © MRC
Export to countries in the June 2008, %
Finland4%
Poland4%
Italy4%
Turkey12%
others6%
China14%
Kazakhstan16%
Ukraine40%
Export to countries in the June 2007, %
Hungary12%
Kazakhstan10%
others7%
Finland
Ukraine24%
Turkey29%
Export to countries from the start of 20084, %
Kazakhstan7%
Italy4%
Hungary3%
Poland3%
others9%
China17%
Turkey25%
Ukraine32%
Export to countries from the start of 20074, %
others20%
Kazakhstan9%
China13%
Turkey26%
Ukraine32%
Export by producers in the June 2008, %Stavrolen
18%
Kazanorhsyntez82%
Export by producers in the June 2007, %Stavrolen
4%
Kazanorhsyntez96%
Export by producers from the start of 20084, %
Stavrolen17%
Kazanorhsyntez83%
Export by producers from the start of 20074, %
Kazanorhsyntez81%
Stavrolen19%
4 – from the beginning of the year up to the analyzed month inclusive 6 – not taking into account HDPE export to Belarus
HDPE Export6 by Countries, %
HDPE: Export6 by Companies, %
Monthly Report. Russia. PE
August 5, 2008 23 © MRC
HDPE: Export6 by Countries, KT
Country Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
Ukraine 1.31 1.47 1.23 2.38 1.88 2.64 1.66 2.41 2.37 1.60 1.50 2.10 2.13 62% 12.11 6%
Turkey 1.62 0.66 2.46 1.14 0.78 2.35 4.99 3.47 2.96 1.85 - 0.90 0.66 -59% 9.84 7%
China - - 0.10 0.10 3.71 5.18 6.65 4.23 0.93 0.11 0.42 - 0.74 - 6.42 37%
Finland 1.00 0.70 1.40 0.80 1.20 0.30 0.40 0.20 - 0.25 - - 0.20 -80% 0.65 -79%
Kazakhstan 0.56 0.59 0.43 0.51 0.39 0.25 0.14 0.45 0.29 0.42 0.12 0.63 0.85 52% 2.77 -14%
Poland 0.15 0.22 0.31 0.89 0.74 0.50 0.50 0.25 0.25 0.27 0.07 0.20 0.20 33% 1.24 10%
Hungary 0.64 0.35 0.05 0.64 0.45 - 0.40 0.19 0.44 0.25 - 0.25 0.20 -69% 1.33 8%
Italy 0.10 0.10 0.06 0.48 0.31 0.05 0.10 0.76 0.42 0.30 0.00 - 0.22 120% 1.70 152%
Azerbaijan 0.05 - 0.05 0.05 0.05 0.25 0.10 - 0.15 0.35 - 0.25 0.10 100% 0.85 307%
others 0.11 0.03 0.16 0.25 0.27 0.35 0.07 0.60 0.76 0.36 0.03 0.18 0.04 -64% 1.97 109%
Total 5.54 4.11 6.26 7.24 9.78 11.87 15.01 12.56 8.57 5.76 2.14 4.51 5.34 -4% 38.88 9%
HDPE: Export6 by Companies, KT
Producer Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
Kazanorhsyntez 5.33 3.79 5.73 6.60 9.25 10.14 13.79 9.97 7.96 4.86 1.29 3.64 4.35 -18% 32.08 11%
Stavrolen 0.21 0.32 0.53 0.65 0.53 1.74 1.21 2.58 0.57 0.91 0.85 0.87 0.97 357% 6.75 -3%
others - - - - - - - - 0.04 - - - 0.02 - 0.06 -
Total 5.54 4.11 6.26 7.24 9.78 11.87 15.01 12.56 8.57 5.76 2.14 4.51 5.34 -4% 38.88 9%
Export6 of HDPE. Kazanorgsyntez, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 3.06 2.16 5.06 5.14 4.24 3.40 0.67 2.27 2.09 0.36 0.00 - - 28.46 -
2002 1.70 2.09 2.31 3.68 3.21 3.38 0.77 2.35 1.96 2.64 2.38 2.21 -1% 28.68 -29%
2003 3.33 3.31 4.15 4.66 7.09 4.90 1.37 6.14 5.41 6.02 9.14 10.28 45% 65.79 68%
2004 5.52 9.46 2.82 2.42 1.16 1.13 0.05 0.84 2.56 2.59 2.11 1.61 -77% 32.28 -18%
2005 2.52 2.88 2.12 0.66 1.01 0.25 0.57 0.28 0.29 1.08 1.40 0.14 -78% 13.19 -58%
2006 1.63 2.82 2.66 1.34 0.73 0.61 0.36 0.52 0.72 1.06 2.47 10.12 148% 25.05 4%
2007 4.64 6.82 7.49 2.91 1.60 5.33 3.79 5.73 6.60 9.25 10.14 13.79 776% 78.09 194%
2008 9.97 7.96 4.86 1.29 3.64 4.35 - - - - - - -18% 32.08 11%
Export6 of HDPE. Stavrolen, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 17.27 15.64 17.57 14.85 13.17 13.12 8.29 0.73 0.01 1.88 - - - 102.54 -
2002 18.14 17.06 17.10 22.12 12.64 0.07 4.04 18.35 16.43 16.60 8.41 13.44 -99% 164.40 -5%
2003 13.76 5.66 11.17 11.84 4.85 0.42 1.71 3.99 5.57 8.28 14.42 16.76 497% 98.43 -45%
2004 17.39 2.18 0.85 2.60 1.49 0.00 0.04 5.59 2.11 7.16 6.60 3.65 -100% 49.67 -49%
2005 5.76 2.29 1.93 1.48 1.54 0.90 0.64 1.21 1.81 1.96 2.34 0.85 59 948% 22.70 -43%
2006 4.06 2.54 2.07 1.65 1.59 0.02 0.56 0.89 0.77 0.64 0.02 2.21 -98% 17.01 -14%
2007 2.99 2.54 0.49 0.22 0.48 0.21 0.32 0.53 0.65 0.53 1.74 1.21 960% 11.91 -42%
2008 2.58 0.57 0.91 0.85 0.87 0.97 - - - - - - 357% 6.75 -3%
6 – not taking into account HDPE export to Belarus
Monthly Report. Russia. PE
August 5, 2008 24 © MRC
Export6 of HDPE by Countries. Kazanorgsyntez, KT
Country Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning ofthe year4
Growth5,%
Turkey 1.62 0.66 2.46 1.14 0.78 2.35 4.99 3.47 2.96 1.85 - 0.90 0.66 -59% 9.84 112%
China - - 0.10 0.10 3.71 4.13 5.60 2.70 0.93 0.11 0.42 - 0.74 - 4.89 5%
Ukraine 1.21 1.20 0.81 1.85 1.35 1.95 1.55 1.35 1.80 0.70 0.65 1.25 1.15 -5% 6.90 -31%
Finland 1.00 0.70 1.40 0.80 1.20 0.30 0.40 0.20 - 0.25 - - 0.20 -80% 0.65 -79%
Kazakhstan 0.45 0.54 0.32 0.40 0.39 0.25 0.14 0.45 0.29 0.42 0.12 0.63 0.85 88% 2.77 12%
Poland 0.15 0.22 0.31 0.89 0.74 0.50 0.50 0.25 0.25 0.27 0.07 0.20 0.20 33% 1.24 10%
Hungary 0.64 0.35 0.05 0.64 0.45 - 0.40 0.19 0.44 0.25 - 0.25 0.20 -69% 1.33 8%
others 0.26 0.13 0.27 0.77 0.63 0.65 0.22 1.36 1.29 1.01 0.03 0.41 0.36 38% 4.46 181%
Total 5.33 3.79 5.73 6.60 9.25 10.14 13.79 9.97 7.96 4.86 1.29 3.64 4.35 -18% 32.08 11%
Export6 of HDPE by Countries. Stavrolen, KT
Country Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning ofthe year4
Growth5,%
Ukraine 0.11 0.27 0.42 0.53 0.53 0.69 0.11 1.06 0.57 0.90 0.85 0.85 0.96 - 5.19 263%
China - - - - - 1.05 1.05 1.52 - - - - 0.01 - 1.53 -
Kazakhstan 0.11 0.05 0.11 0.11 - - 0.00 - - - - - - - - -
Azerbaijan - - - - - - 0.05 - - - - - - - - -
Austria - - - 0.01 - - - - - 0.01 - 0.02 - - 0.03 145%
Czech Republic
- - - - - - 0.00 - - - - - - - - -
Total 0.21 0.32 0.53 0.65 0.53 1.74 1.21 2.58 0.57 0.91 0.85 0.87 0.97 357% 6.75 -3%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year 6 – not taking into account HDPE export to Belarus
Monthly Report. Russia. PE
August 5, 2008 25 © MRC
HDPE: Import by Producers, KT
Producer Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning of the year4
Growth5,%
Korea Petrochemical
2.96 4.22 4.61 1.70 6.56 2.86 1.78 6.25 8.54 5.13 4.69 3.91 5.32 80% 33.85 134%
Borealis 3.73 4.96 6.59 5.52 6.81 5.41 4.82 3.57 4.60 3.80 3.55 1.79 2.87 -23% 20.19 -25%
Shurtansky Gas-Chemical Plant
5.37 4.64 3.36 4.09 2.12 2.49 2.22 1.93 3.59 1.01 1.77 1.60 2.64 -51% 12.54 -31%
Daelim 3.29 4.20 3.17 2.34 2.29 1.29 1.63 0.70 1.78 1.18 2.19 1.77 1.77 -46% 9.39 -9%
Ineos Polyolefins 2.14 2.03 2.40 2.33 2.16 1.55 2.29 1.17 1.86 2.53 2.21 2.33 1.57 -27% 11.68 7%
Karpatneftechem 1.96 1.45 0.49 1.01 1.01 2.23 2.07 0.57 2.12 0.27 1.96 3.02 1.71 -13% 9.64 -14%
Total Petrochemicals
0.22 0.65 0.48 1.12 1.36 1.81 0.35 0.30 0.09 0.65 0.12 0.97 - - 2.12 -72%
SK Corporation 0.38 0.37 0.98 0.65 0.84 0.47 0.55 0.70 0.25 0.56 0.68 0.48 0.28 -27% 2.95 172%
LG 0.37 0.68 0.78 0.58 0.62 0.57 0.27 0.07 0.41 0.48 0.46 0.47 0.22 -39% 2.11 -46%
TVK 0.44 0.97 0.38 0.37 0.23 0.21 0.17 0.16 0.15 0.32 0.38 0.53 0.61 37% 2.14 -58%
others 3.91 4.30 3.97 2.08 2.98 2.51 2.01 1.69 1.77 2.06 2.17 2.32 2.49 -36% 0.85 -34%
Total 24.78 28.47 27.22 21.80 26.97 21.38 18.16 17.11 25.14 17.99 20.19 19.19 19.48 -21% 119.11 -8%
Import by Producers in the June 2008, %
Daelim9%
Karpatneftechem9%
Ineos Polyolefins8%
Samsung4%
others15%
Shurtansky Gas-Chemical Plant
14%
Borealis15%
Korea Petrochemical
26%
Import by Producers in the June 2007, %
Korea Petrochemical
12%
Ineos Polyolefins9%
Karpatneftechem8%
Thai Petrochemical4%
others17%
Daelim13%
Borealis15%
Shurtansky Gas-Chemical Plant
22%
Import by Producers from the start of 20084, %
SK Corporation2%
Samsung2%
others14%
Daelim8%
Karpatneftechem8%
Shurtansky Gas-Chemical Plant
11%Ineos Polyolefins
10%
Borealis17%
Korea Petrochemical
28%
Import by Producers from the start of 20074, %
Karpatneftechem9%
Ineos Polyolefins8%
Daelim8%
Total Petrochemicals
6%
others23%
Korea Petrochemical
11%
Shurtansky Gas-Chemical Plant
14%
Borealis21%
Import by Producers in 2007, %
Daelim9%
Ineos Polyolefins9%
Karpatneftechem7%
Total Petrochemicals
5%
TVK3%
others18%
Korea Petrochemical
13%
Shurtansky Gas-Chemical Plant
14%
Borealis22%
Import by Producers in 2006, %
Korea Petrochemical
9%Ineos Polyolefins
8%Karpatneftechem
11%
Total Petrochemicals
6%
Daelim4%
others18%
Borealis22%
Shurtansky Gas-Chemical Plant
22%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year
HDPE: Import by Producers, %
Monthly Report. Russia. PE
August 5, 2008 26 © MRC
HDPE: Import by Countries, KT
Country Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning ofthe year4
Growth5,%
South Korea 7.60 9.76 10.41 5.36 11.03 5.54 4.72 8.19 11.50 8.32 8.62 7.21 8.42 11% 52.26 61%
Uzbekistan 5.37 4.64 3.36 4.09 2.12 2.49 2.22 1.93 3.59 1.01 1.77 1.60 2.64 -51% 12.54 -31%
Finland 1.55 2.21 2.98 2.50 3.75 2.12 3.01 2.84 3.68 1.78 2.61 1.34 2.29 48% 14.53 24%
Germany 3.31 2.69 1.62 1.04 1.70 1.49 2.73 0.48 1.56 2.57 2.84 1.30 1.58 -52% 10.33 -21%
Sweden 1.98 2.50 3.05 2.38 2.43 2.62 1.51 0.63 0.76 1.58 0.23 0.31 0.19 -90% 3.70 -68%
Ukraine 1.96 1.45 0.49 1.01 1.01 2.23 2.07 0.57 2.12 0.27 1.96 3.02 1.71 -13% 9.64 -14%
Belgium 1.46 1.50 1.55 1.92 2.09 0.48 1.94 0.92 1.31 1.54 1.90 1.35 0.43 -71% 7.45 -35%
France 1.00 1.06 0.86 1.48 1.46 2.30 0.94 0.48 0.45 1.06 0.53 1.09 0.46 -54% 4.08 -54%
Italy 0.20 0.15 0.97 1.35 0.82 0.55 0.21 0.18 0.29 0.77 0.83 0.90 0.78 292% 3.76 196%
others 3.41 4.84 4.02 2.84 2.18 2.75 1.88 1.33 1.41 1.60 1.98 2.45 2.05 -40% 2.79 -62%
Total 27.83 30.80 29.31 23.97 28.57 22.58 21.22 17.55 26.66 20.51 23.28 20.55 20.55 -26% 129.11 -9%
Import by countries in the June 2008, %
Hungary3%
France2%
Belgium2%
others8%
Italy4%
Germany8%
Ukraine8%
Finland11%
Uzbekistan13%
South Korea41%
Import by countries in the June 2007, %
Uzbekistan19%
South Korea27%
Sweden7% Germany
12%
Belgium5%
Ukraine7%
Finland6%
others13%
Thailand4%
Import by countries from the start of 20084, %
Italy3%
Sweden3%
France3%
Belgium6%
others8%
Ukraine7%
Germany8%
Uzbekistan10%
Finland11%
South Korea41%
Import by countries from the start of 20074, %
Uzbekistan13%
South Korea23%
Finland8%
Germany9%
Ukraine8%
Sweden8%
Belgium8%
others23%
Import in 2007, %
France6%
Netherlands3% others
13%
Belgium7%
Germany8%
Ukraine7%
Finland9%
Sweden9%
South Korea26%
Uzbekistan12%
Import in 2006, %
Belgium6%
others13%
France7%
Finland9%
Germany7%
Ukraine10%
Sweden9%
Uzbekistan22%
South Korea17%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year
HDPE: Import by Countries, %
Monthly Report. Russia. PE
August 5, 2008 27 © MRC
LLDPE: Consumption, KT
Indexes Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning ofthe year4
Growth5,%
Production - - - - - 1.95 1.88 - - 5.80 - 0.05 2.53 - 8.40 -
Import 4.25 5.50 7.55 5.84 7.76 6.94 9.41 4.89 6.80 7.12 8.42 8.51 6.86 61% 42.60 28%
Export - - - - - - 0.02 - - - 0.10 - 0.10 - 0.20 -
Demand 4.25 5.50 7.55 5.84 7.76 8.89 11.27 4.89 6.80 12.92 8.32 8.56 9.29 119% 50.78 53%
LLDPE: Import, KT
Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Growth3,% From the
beginning ofthe year4
Growth5,%
2001 0.23 0.35 0.58 0.40 0.33 0.51 0.45 0.68 0.65 0.23 0.68 0.14 - 5.25 -
2002 0.36 0.49 0.50 0.79 0.82 1.05 1.08 0.87 1.13 0.88 0.94 0.35 106% 9.27 67%
2003 0.43 1.18 0.65 1.06 1.05 1.30 2.13 1.57 0.85 0.93 1.16 1.26 23% 13.58 41%
2004 1.11 1.24 1.38 1.90 1.82 3.01 2.54 2.39 1.43 1.70 2.19 2.03 132% 22.73 84%
2005 1.18 1.60 2.36 3.78 2.84 3.81 2.98 2.48 2.94 3.29 3.02 4.00 27% 34.29 49%
2006 2.31 3.72 4.61 3.66 4.78 5.31 3.58 5.39 5.83 6.50 6.99 7.41 39% 60.08 57%
2007 4.34 5.12 6.56 6.60 6.30 4.25 5.50 7.55 5.84 7.76 6.94 9.41 -20% 76.17 36%
2008 4.89 6.80 7.12 8.42 8.51 6.86 - - - - - - 61% 42.60 28%
LLDPE: Import by Producers, KT
Producer Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning ofthe year4
Growth5,%
Dow 1.39 1.37 1.87 1.83 2.74 1.44 3.50 1.53 3.01 2.46 4.53 4.44 3.37 142% 19.34 79%
Exxon Mobil 0.50 0.97 1.45 1.50 1.66 2.22 1.29 1.15 1.02 1.55 1.55 1.13 1.37 175% 7.76 36%
Borealis 1.17 1.77 1.44 1.11 1.34 0.55 1.66 0.71 0.60 0.80 1.07 0.61 0.59 -50% 4.38 -21%
Shurtansky Gas-Chemical Plant
0.32 0.13 1.07 0.20 0.60 1.21 1.51 0.55 0.64 0.69 0.07 0.51 - - 2.46 -8%
Hyundai Petrochemical 0.18 0.46 0.75 0.20 0.74 0.53 0.30 0.25 0.46 0.59 0.53 0.97 0.80 335% 3.60 33%
Sabic 0.13 0.20 0.25 0.34 0.14 0.28 0.04 0.02 0.12 0.33 0.05 0.05 0.10 -21% 0.67 -59%
HMG 0.16 0.12 0.22 0.13 0.07 0.10 - - 0.14 0.09 0.15 0.13 0.16 0% 0.67 2%
Basell Polyolefins 0.12 - - 0.02 0.05 0.18 0.40 0.13 0.27 - - - - - 0.39 218%
Braskem 0.04 0.17 0.11 0.07 0.13 0.05 0.06 0.30 0.04 0.08 0.02 0.05 - - 0.49 -35%
others 0.24 0.31 0.37 0.43 0.29 0.39 0.64 0.25 0.51 0.52 0.45 0.62 0.47 98% 0.15 -65%
Total 4.25 5.50 7.55 5.84 7.76 6.94 9.41 4.89 6.80 7.12 8.42 8.51 6.86 61% 42.60 28%
Monthly Report. Russia. PE
August 5, 2008 28 © MRC
Import by Producers in the June 2008, %
Sabic2%
Samsung1% others
2%
HMG2%
Borealis9%
Hyundai Petrochemical
12%
Exxon Mobil21%
Dow51%
Import by Producers in the June 2007, %
Sabic3%
others7%
HMG4%Hyundai
Petrochemical4%
Shurtansky Gas-Chemical Plant
8%
Exxon Mobil12%
Borealis28%
Dow34%
Import by Producers from the start of 20084, %Samsung
2%
Sabic2%
HMG2%
others5%
Hyundai Petrochemical
9%
Shurtansky Gas-Chemical Plant
6%
Borealis10%
Exxon Mobil19%
Dow45%
Import by Producers from the start of 20074, %
Sabic5%
others10%
Braskem2%
Shurtansky Gas-Chemical Plant
8%
Hyundai Petrochemical
8%
Borealis17%
Exxon Mobil17%
Dow33%
Import by Producers 2007, %
others7%
HMG2%
Exxon Mobil19%
Dow30%
Shurtansky Gas-Chemical Plant
10%
Borealis18%
Braskem2%
Hyundai Petrochemical
8%
Sabic4%
Import by Producers 2006, %
others8%
Exxon Mobil19%
Dow39%
Hyundai Petrochemical
8%
Borealis11%
HMG2%
Shurtansky Gas-Chemical Plant
8%
Sabic5%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year
LLDPE: Import by Producers, %
Monthly Report. Russia. PE
August 5, 2008 29 © MRC
LLDPE: Import by Countries, KT
Country Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning ofthe year4
Growth5,%
Netherlands 0.88 1.10 2.53 1.51 2.70 0.39 1.59 0.90 2.94 2.00 3.50 3.50 2.56 191% 15.40 66%
France 0.30 0.56 0.50 0.73 0.87 1.27 1.01 0.91 0.73 1.09 1.17 0.86 1.14 287% 5.90 130%
South Korea 0.46 0.69 1.20 0.52 0.90 0.83 0.44 0.33 0.84 1.02 0.96 1.57 1.12 145% 5.83 48%
Germany 0.84 0.72 0.27 0.37 0.78 0.68 1.05 0.51 0.49 0.82 0.91 0.86 0.70 -16% 4.29 -6%
Belgium 0.42 0.40 0.80 0.84 0.56 1.11 2.34 0.21 0.18 0.25 0.35 0.36 0.34 -20% 1.68 -54%
Uzbekistan 0.32 0.13 1.07 0.20 0.60 1.21 1.51 0.55 0.64 0.69 0.07 0.51 - - 2.46 -8%
Austria 0.26 0.39 0.33 0.33 0.32 0.14 0.59 0.35 0.51 0.48 0.79 0.39 0.30 16% 2.82 57%
Finland 0.50 0.56 0.24 0.27 0.23 0.08 0.18 0.02 0.03 - 0.02 0.07 0.12 -75% 0.26 -87%
Saudi Arabia - - 0.15 0.10 0.07 0.27 0.04 0.12 0.06 0.37 0.30 0.20 0.17 - 1.22 566%
Switzerland 0.04 0.08 0.12 0.46 0.41 0.16 0.21 0.17 - 0.04 0.08 - - - 0.29 -22%
others 0.24 0.88 0.33 0.50 0.31 0.81 0.44 0.83 0.37 0.37 0.27 0.21 0.40 67% 1.29 39%
Total 4.25 5.50 7.55 5.84 7.76 6.94 9.41 4.89 6.80 7.12 8.42 8.51 6.86 61% 42.60 28%
Import by countries in the June 2008, %Saudi Arabia
2%others
4%
Austria4%
Uruguay3%
Belgium5%
Germany10%
South Korea16%
France18%
Netherlands38%
Import by countries in the June 2007, %
Germany19%
Netherlands20%
South Korea11%
Finland12%
Belgium10%
others13%
France7%
Uzbekistan8%
Import by countries from the start of 20084, %Belgium
4%
Saudi Arabia3% others
7%Uzbekistan6%
Austria7%
Germany10%
South Korea14%
France14%
Netherlands35%
Import by countries from the start of 20074, %France
9%Finland
7%
Uzbekistan9%
South Korea14%
Belgium13%
Netherlands32%
Germany16%
Import in 2007, %
Uzbekistan10%
others11%
Austria5%
Finland5%
France10%
South Korea11%
Germany11%
Netherlands24%
Belgium13%
Import in 2006, %
Belgium7%
Finland6%
others13%
Uzbekistan8%
Germany13%
France8%
Netherlands32%
South Korea13%
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year
LLDPE: Import by Countries, %
Monthly Report. Russia. PE
August 5, 2008 30 © MRC
Prices of PE in the Domestic Market (for MT)
PE type Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
HDPE 52 808 54 964 54 010 53 992 53 346 53 081 53 406 53 663 54 441 55 709 56 229 57 010 57 820
Growth, RUB - 2 157 - 954 - 19 - 646 - 264 324 257 778 1 269 519 782 810
LDPE 42 029 45 253 49 036 49 735 47 838 47175 46 956 46 637 47 674 48770 49 673 50 323 50 747
Growth, RUB - 3 223 3 784 699 - 1 897 -663 -218 -319 1037 1 096 904 650 424
LLDPE 53 905 53 635 55 214 55 123 55 177 55 324 55 625 56 823 57 271 57 445 57 736 58 477 59 706
Growth, RUB - -270 1 579 - 91 54 147 301 1198 448 174 290 742 1 229
HDPE Price, domestic market, CPT Moscow, RUB/mt
51 500
53 500
55 500
57 500
59 500
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007
2008
HDPE Price, FD NWE, spot, USD/mt
1 450
1 570
1 690
1 810
1 930
2 050
2 170
2 290
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007
2008
HDPE Price, CFR SE Asia, spot, USD/mt
1 250
1 360
1 470
1 580
1 690
1 800
1 910
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007
2008
LDPE Price, domestic market, CPT Moscow, RUB/mt
40 000
44 000
48 000
52 000
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007
2008
LDPE Price, FD NWE, spot, USD/mt
1 450
1 650
1 850
2 050
2 250
2 450
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007
2008
LDPE Price, CFR SE Asia, spot, USD/mt
1 300
1 450
1 600
1 750
1 900
2 050
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007
2008
LLDPE Price, domestic market, СРТ Moscow, RUB/mt
52 500
54 300
56 100
57 900
59 700
61 500
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007
2008
LLDPE Price, FD NWE, spot, USD/mt
1 370
1 530
1 690
1 850
2 010
2 170
2 330
2 490
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2007
2008
Detailed information on the price of each brand can be found in our Price Reports.
* prices in the domestic market of the Russian Federation calculated taking into account “weight” of each brand depending on its consumption volumes. For Russian brands - CPT, Moscow; for foreign brands - DDU, Moscow.
Prices
Monthly Report. Russia. PE
August 5, 2008 31 © MRC
Output Volumes of Some Processing Sectors in the Russian Federation (selectively)
Index Jun 07
Jul 07
Aug 07
Sep 07
Oct 07
Nov 07
Dec 07
Jan 08
Feb 08
Mar 08
Apr 08
May 08
Jun 08
Growth3,% From the
beginning ofthe year4
Growth5,%
Milk 857 859 845 807 831 803 824 816 825 858 837 851 n/d n/d n/d n/d
steel pipes, KT 764 773 742 723 697 659 660 565 674 744 718 724 n/d n/d n/d n/d
bread and bakery 652 657 647 651 660 642 653 586 577 609 607 634 n/d n/d n/d n/d
mineral water, mln. half-liters
760 779 674 580 482 485 583 443 511 688 745 844 n/d n/d n/d n/d
sausage 202 207 206 206 214 205 225 178 186 191 204 206 n/d n/d n/d n/d
tiles, thous. m² 94.3 138 155 147 170 200 82 75 136 114 167 172 n/d n/d n/d n/d
GDP Growth Dynamics, %
2%
4%
6%
8%
10%
Apr Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Processing Industry Index,%
0%
5%
10%
15%
20%
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Commissioning of Housing, mln. sq.m.
0
4
8
12
16
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Retail Trade Turnover, RUB billion
600
750
900
1050
1200
May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Price of oil, brent, USD/mt, FOB NW E
300
425
550
675
800
925
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
USD
2007
2008
Of f icial Currency Exchange Rate of the Central Bank of the Russian Federat ion, 2007/2008
23
27
30
34
37
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
EUR
USD
3 – growth regarding the same month last year 4 – from the beginning of the year up to the analyzed month inclusive 5- growth regarding the same period last year
Key Economic and Social Figures in the Russian Federation
Monthly Report. Russia. PE
August 5, 2008 32 © MRC
July 21, 2008
Promising prospect for UAE's plastic conversion industry
in form Abu Dhabi
Government-owned Abu Dhabi Basic Industries Corporation
(ADBIC) has revealed plans to set up UAE's very first industrial
complex dedicated to plastic conversion industry-Abu Dhabi
Polymers Park. The purpose of the polymer park will be to take
benefit of the twofold increase in the polymer (which is used as
a raw material) production capacity to 33 mln in the next three
years. The polymer park worth US$4 bln and having an area of
4.5 sq. km will house 50 plastic product manufacturers with a
conversion capacity of roughly 1 mln tpa, a significant share of
which will be exported. These companies will convert the
polymer resins into end products for the packaging, original
equipment manufacturing, construction and infrastructure
segments including value added goods such as pipes, cables
and intermediate blow moulded containers.
According to one of the advisors for the project, the Abu Dhabi
Polymer Park will benefit from the strong support facilities and
commerce friendly environment of the Gulf region. The
feasibility studies have shown cost advantages and growing
market demand for a range of products including high density
polyethylene (HDPE) and polypropylene pipes, building and
construction applications such as geotextiles, geomembranes
and artificial grass, consumer and industrial packaging, and
plastic car components.
July 22, 2008
Japanese chemical firms raise polyethylene prices by 17
pct
Japan's film manufacturers and other resin users have agreed
to the price hikes sought by Mitsubishi Chemical Holdings Corp.,
Mitsui Chemicals Inc. and Sumitomo Chemical Co., boosting
the price of polyethylene, the most common synthetic resin, by
a record 17 percent to levels not seen for the past 25 years,
the Nikkei reported on Tuesday, without citing sources.
Domestic synthetic resin prices are now at their highest level
since 1983, when the market was dealing from the fallout of
the second oil shock, the business daily said.
The chemical companies this month raised polyethylene prices
by some 35-40 yen ($0.3-0.4) to around 250 yen per kilogram,
it said. Meanwhile, the price of polypropylene, which is used in
candy packaging and clothing storage products, was lifted
around 37-40 yen per kilogram, or 18 percent, the report said.
($1 = 106.72 yen)
July 23, 2008
Borealis plant in Austria suffers power interruption
Borealis has criticised its electricity supplier following a power
failure that forced it to briefly close its polyolefins plant in
Schwechat, Austria.
The company made a complete shutdown of its plant after an
external power interruption on Friday18 July, at 5am. The
shutdown was necessary in order to evacuate all the gasses
out of the units for safety reasons.
Philippe Roodhooft, Borealis vice president operations
polyolefins, said in a statement: “This is not the first time we
have experienced the interruption of electricity to the plant at
Schwechat. In addition to the substantial losses that it incurs
for us as a company, it increases CO2 emissions into the air
and the noise level in the community, which concerns us
enormously. We continually invest in reducing our impact on
the environment and we expect the same philosophy from our
suppliers.”
The company said that 120 tons of gas was wasted due to the
shutdown last week. This will lead to financial losses which it
estimates at €1.2m. “During the last four years up to €4m
losses have been underpinned by increasing electricity
interruptions of the external grid,” said Borealis.
Borealis management restarted the plant over the weekend.
The company did not disclose how much polymer production
was lost at the plant, which has the capacity to produce
350,000tpa of polyethylene and 300,000tpa of polypropylene.
July 24, 2008
Price increase reprieve in Asia
Samsung Total has sold PP raffia and injection grades to China
at $2050/tonne CFR, with PP copolymer sold at $2050/tonne
CFR China. High-density polyethylene (HDPE) yarn offers to
China are at $1850/tonne CFR China. Polymerupdate reports
that Taiwan’s Formosa has sold PP raffia and injection grades
to a Hong Kong based trader for $2050/tonne CFR Hong Kong,
with biaxially oriented (PP) sold at $2070/tonne CFR Shanghai.
In South Korea, producer Hanwha concluded a sale of low-
density polyethylene (LDPE) to China for $1950/tonne CFR,
with linear low-density polyethylene (LLDPE) sold to China at
$1850/tonne CFR, although following offers have been revised
up to $1880/tonne CFR.
July 25, 2008
Brazilian Consumption and Import of Thermoplastic
Resins Grow
Imports of thermoplastic resins by Brazil grew 60.7% in the
first half this year, in comparison with the same months of
2007, having totaled 521,700 tons, according to data disclosed
by the Brazilian Chemical Industry Association (Abiquim).
The purchases helped sustain the expansion in consumption of
the products in the Brazilian domestic market.
From January to June this year, Brazil consumed 2.4 million
tons of thermoplastic resins. The volume was 13.5% greater
than recorded during the same period last year. The national
industry also supplied the domestic market, however it
recorded a 6.6% decline in production.
Brazil manufactured 2.2 million tons of the product. Output
was harmed by interruption of production for maintenance at
national petrochemical plants.
The data includes polyethylene (PE), polypropylene (PP),
polystyrene (PS), polyvinyl chloride (PVC) and copolymer of
ethylene and vinyl acetate (EVA). Brazilian thermoplastic resin
exports also decreased in the accumulated result up until June.
News
Monthly Report. Russia. PE
They totaled 375,700 tons, reduction of 39.7% in comparison
with the same period last year.
In June alone, Brazilian thermoplastic resin output totaled
380,400 tons, 6.4% more than in May. There was, however, a
6.6% reduction in comparison with June last year. Imports
remained practically on the same level as in May, at 85,000
tons, and exports grew 32.2%, to reach 66,000 tons.
July 28, 2008
SABIC shuts down PE, C2 at Al-Jubail
Saudi Basic Industries Corp (SABIC) has shut down two of its
polyethylene (PE) lines and one of its crackers at Al-Jubail,
customers and sources close to the company said on
Wednesday.
The PE shutdowns were due to a shortage of ethylene
feedstock caused by technical problems at SABIC’s 650,000
tonne/year Petrokemya (Arabian Petrochemical Co) No 1
cracker at Al Jubail, a source close to the company added.
"It is not clear how long the cracker will be down, but PE
supply has been affected and deliveries for August are
expected to be delayed," a customer said.
Information was not available on how long the PE plants would
be down. SABIC officials were not immediately available for
comment. The PE lines that are currently offline include a
375,000 tonne/year linear low density PE (LLDPE) line
operated by Eastern Petrochemical Co (Sharq), a joint venture
of SABIC and Japan’s SPDC, and a 350,000 tonne/year high
density PE/LLDPE line run by SABIC subsidiary Petrokemya,
the source close to the company said.
The shutdowns have tightened PE supply in the Middle East
although there appeared to be minimal impact on the ethylene
market, traders said. "Currently the ethylene market is not so
tight," said a trader based in Japan. "There is no demand from
the market. People want to sell but they can’t find buyers."
July 19, 2008
Dow announces seventh hike in PE prices in 2008
Dow Europe has announced a price increase in
polyethylene (PE) for the seventh time this year. Effective
August 1, the prices for LDPE, LLDPE and HDPE in Europe,
the Middle East, Africa and India will be increased by Euro
150 per ton following a July 1 hike by the same amount.
April was the only month when the company did not
increase the PE prices. Should the raised prices be
accepted by the markets, Dow's PE will become Euro 710
per ton more dearer relative to the 2007 end PE prices.
July 31, 2008
LUKoil mulls US$3 bln investment in ethylene plant
in South Russia
Russia's largest independent crude producer - LUKoil,
plans to invest US$3 bln in an ethylene and derivatives
plant in South Russia's Stavropol Territory. Feedstock for
the project could be sourced from hydrocarbons extracted
in the northern part of the Caspian Sea. An MOU to this
effect was signed by Stavropol Territory Governor and
head of the oil giant's petrochemicals arm LUKoil-
Neftekhim.
If kicked off, this project will be the largest production
complex in Russia and Eastern Europe, producing 900,000
tpa of polyethylene and 300,000 tpa of polypropylene -
amounting to 30% of polymers produced in the country.
July 31, 2008
Technical glitches at SABIC could tighten
polyethylene supply in Middle East
Technical glitches at SABIC's 650,000 tpa Petrokemya No.
1 cracker at Al Jubail has led to a dearth of ethylene
feedstock caused, shuttering two of its polyethylene lines
and one of its crackers at Al-Jubail. Though the duration of
the shutdown is undisclosed, it is sure to impinge on PE
supply and deliveries for August. The PE lines that are
currently offline include a 375,000 tpa LLDPE line operated
by Sharq and a 350,000 tpa HDPE/LLDPE line run by
subsidiary Petrokemya. Though these shutdowns will exert
pressures on the PE supply scenario in the Middle East, it
is likely that ethylene markets will continue unabated.
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