polyethylene. russia · polyethylene. russia august 5, 2008 monthly report: june editor: vladimir...

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


Export, KT

0

6

12

18

24


Import, KT

0

11

22

33

44


Export to Production,%

0%

6%

12%

18%

24%


Import to Consumption,%

0%

10%

20%

30%

40%


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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


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


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


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



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



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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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


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


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


Production, KT

0

16

32

48

64


Export, KT

0

4

8

12

16


Import, KT

0

1.5

3

4.5

6



0%

7%

14%

21%

28%



0%

4%

8%

12%


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



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



LDPE: Consumption 6, KT


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


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



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



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



Kazanorgsyntez, KT

0

6

12

18

24


Kazanorgsyntez. Utilization of Capacities, %

0%

25%

50%

75%

100%


Tomskneftechem, KT

0

6

12

18

24


Tomskneftechem. Utilization of Capacities, %

0%

25%

50%

75%

100%


Ufaorgsyntez, KT

0

2.25

4.5

6.75

9


Ufaorgsyntez. Utilization of Capacities, %

0%

25%

50%

75%

100%


Angarsk Polymer Plant, KT

0

2

4

6

8

10


Angarsk Polymer Plant. Utilization of Capacities, %

0%

25%

50%

75%

100%


Salavatnefteorgsyntez, KT

0

1

2

3

4

5


Salavatnefteorgsyntez. Utilization of Capacities, %

0%

25%

50%

75%

100%


NeftechemSevilen, KT

0

1

2

3


NeftechemSevilen. Utilization of Capacities, %

0%

25%

50%

75%

100%


LDPE: Production and Utilization of Production Capacities by Companies



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


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%


Ufaorgsyntez14%

Kazanorhsyntez21%

Tomskneftechem39%

Production from the start of 20084, %

Ufaorgsyntez11%

Sevilen4%


tez)7%


Kazanorhsyntez30%

Tomskneftechem36%


Sevilen5%SNOS



Ufaorgsyntez14%

Kazanorhsyntez28%

Tomskneftechem34%

Production in 2007, %

Sevilen4%

Tomskneftechem32%

Kazanorhsyntez31%

Ufaorgsyntez14%


tez)7%



Sevilen5%

Tomskneftechem32%

Kazanorhsyntez31%

Ufaorgsyntez14%


tez)7%



LDPE: Production by Companies , %


August 5, 2008 10 © MRC

Kazanorgsyntez. Production of LDPE, KT



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



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



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



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



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



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%



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%


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



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, %


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


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


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



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



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


August 5, 2008 13 © MRC

Export6 of LDPE. Ufaorgsyntez, KT



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



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



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



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


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


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


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


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


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


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


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


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%



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%


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, %


Sumgait1%

Gabriel-Chemie1%

others9%

Ineos Polyolefins8%

LG1%

Exxon Mobil12%

Dow26%

Borealis41%


Gabriel-Chemie3%

others11%

MPB2%

Sabic4%

Dow9%


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, %


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


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%


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%


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, %


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


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


Production, KT

0

16

32

48

64


Export, KT

0

3.5

7

10.5

14


Import, KT

0

8

16

24

32



0%

5%

10%

15%

20%

25%



0%

16%

32%

48%

64%


6 – not taking into account HDPE export to Belarus

General Indexes. HDPE


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


August 5, 2008 19 © MRC

HDPE: Consumption6, KT



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



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



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



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


August 5, 2008 20 © MRC

Kazanorgsyntez. Production of HDPE, KT



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



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


Kazanorgsyntez. Utilization of Capacities, %

0%

25%

50%

75%

100%


Stavrolen, KT

0

8

16

24

32


Stavrolen. Utilization of Capacities, %

75%

100%



HDPE: Production and Utilization of Production Capacities by Companies


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


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%


Stavrolen46% Kazanorhsyntez

54%


Stavrolen47%

Kazanorhsyntez53%


Stavrolen50%

Kazanorhsyntez50%


Kazanorhsyntez47%

Stavrolen53%


Kazanorhsyntez50%

Stavrolen50%


Kazanorhsyntez43%

Stavrolen57%


HDPE: Production by Companies, %


August 5, 2008 22 © MRC


Finland4%

Poland4%

Italy4%

Turkey12%

others6%

China14%

Kazakhstan16%

Ukraine40%


Hungary12%

Kazakhstan10%

others7%

Finland

Ukraine24%

Turkey29%


Kazakhstan7%

Italy4%

Hungary3%

Poland3%

others9%

China17%

Turkey25%

Ukraine32%


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%


Stavrolen17%

Kazanorhsyntez83%


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, %


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


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


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



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



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


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


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


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


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


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%


Daelim9%

Karpatneftechem9%

Ineos Polyolefins8%

Samsung4%

others15%


14%

Borealis15%

Korea Petrochemical

26%


Korea Petrochemical

12%

Ineos Polyolefins9%

Karpatneftechem8%

Thai Petrochemical4%

others17%

Daelim13%

Borealis15%


22%


SK Corporation2%

Samsung2%

others14%

Daelim8%

Karpatneftechem8%


11%Ineos Polyolefins

10%

Borealis17%

Korea Petrochemical

28%


Karpatneftechem9%

Ineos Polyolefins8%

Daelim8%


6%

others23%

Korea Petrochemical

11%


14%

Borealis21%


Daelim9%

Ineos Polyolefins9%

Karpatneftechem7%


5%

TVK3%

others18%

Korea Petrochemical

13%


14%

Borealis22%


Korea Petrochemical

9%Ineos Polyolefins

8%Karpatneftechem

11%


6%

Daelim4%

others18%

Borealis22%


22%


HDPE: Import by Producers, %


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


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%


Hungary3%

France2%

Belgium2%

others8%

Italy4%

Germany8%

Ukraine8%

Finland11%

Uzbekistan13%

South Korea41%


Uzbekistan19%

South Korea27%

Sweden7% Germany

12%

Belgium5%

Ukraine7%

Finland6%

others13%

Thailand4%


Italy3%

Sweden3%

France3%

Belgium6%

others8%

Ukraine7%

Germany8%

Uzbekistan10%

Finland11%

South Korea41%


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%


HDPE: Import by Countries, %


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


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



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


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%


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%


August 5, 2008 28 © MRC


Sabic2%

Samsung1% others

2%

HMG2%

Borealis9%

Hyundai Petrochemical

12%

Exxon Mobil21%

Dow51%


Sabic3%

others7%

HMG4%Hyundai

Petrochemical4%


8%

Exxon Mobil12%

Borealis28%

Dow34%

Import by Producers from the start of 20084, %Samsung

2%

Sabic2%

HMG2%

others5%


9%


6%

Borealis10%

Exxon Mobil19%

Dow45%


Sabic5%

others10%

Braskem2%


8%


8%

Borealis17%

Exxon Mobil17%

Dow33%

Import by Producers 2007, %

others7%

HMG2%

Exxon Mobil19%

Dow30%


10%

Borealis18%

Braskem2%


8%

Sabic4%

Import by Producers 2006, %

others8%

Exxon Mobil19%

Dow39%


8%

Borealis11%

HMG2%


8%

Sabic5%


LLDPE: Import by Producers, %


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


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%


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%


LLDPE: Import by Countries, %


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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


2007

2008

HDPE Price, CFR SE Asia, spot, USD/mt

1 250

1 360

1 470

1 580

1 690

1 800

1 910

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


2007

2008

LDPE Price, domestic market, CPT Moscow, RUB/mt

40 000

44 000

48 000

52 000

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


2007

2008

LDPE Price, FD NWE, spot, USD/mt

1 450

1 650

1 850

2 050

2 250

2 450

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


2007

2008

LDPE Price, CFR SE Asia, spot, USD/mt

1 300

1 450

1 600

1 750

1 900

2 050

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


2007

2008

LLDPE Price, domestic market, СРТ Moscow, RUB/mt

52 500

54 300

56 100

57 900

59 700

61 500

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


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

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


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


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


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


Retail Trade Turnover, RUB billion

600

750

900

1050

1200


Price of oil, brent, USD/mt, FOB NW E

300

425

550

675

800

925

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .


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


Key Economic and Social Figures in the Russian Federation


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


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.

Our Contacts:

Sales: [email protected] Telephones: Moscow: + 7 495 543 91 94

General Questions: [email protected] Alyona Grusha [email protected] Kyiv: + 38044 599 29 50

polyethylene. russia · polyethylene. russia august 5, 2008 monthly report: june editor: vladimir...

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