Russia Witnesses 11.3% Surge in Plastics Production Over Four Months

Over the course of 11 months in 2023, Russia has witnessed a noteworthy uptick in the production of plastics in primary forms, marking a 3.4% increase compared to the corresponding period in the previous year. This positive trajectory is primarily fueled by heightened production levels of polyethylene (PE) and formaldehyde resins, although the recent months have seen a somewhat less substantial increase in PE, standing at 1.8%. Nevertheless, the sheer volume of PE produced, surpassing other polymers, has contributed to an overall favorable trend in the broader plastics category.

The surge in the production of formaldehyde resins has been more pronounced, exhibiting a robust 9.6% increase over the 11-month period. Notably, this escalation in output began in September, with figures for the preceding eight months trailing behind the results recorded in the same period of the previous year.

On the flip side, the production of polyvinyl chloride (PVC) has shown signs of improvement. While the volume of PVC production at the end of nine months was 2022.6% lower than the figures from the previous year's six-month results, by the conclusion of the 11-month period, they essentially equalled the levels recorded in the corresponding period of the prior year.

In contrast, polyamides remain on the lower end of the spectrum, experiencing a substantial decline of 20.2% over the 11-month period compared to the same period in the previous year.

Earlier reports shed light on the production landscape of plastics in Russia for the initial nine months of 2023, showcasing a 2.1% increase. Simultaneously, consumption demonstrated a more significant ascent, ranging between 9% and 11% compared to the corresponding period in 2022. Within this context, polyethylene production observed a 4% increase, consumption surged by 22%, and imports experienced a 10% uptick. However, exports faced a sharp decline of 50%. Polypropylene displayed a commendable 7.6% increase in production, accompanied by a 12% rise in demand and a substantial 44% increase in imports.

The surge in formaldehyde resins production, particularly commencing in September, signifies a rebound in demand or other contributing factors that have propelled this category to a notable 9.6% increase. The momentum gained in the latter part of the 11-month period could be indicative of evolving market conditions or specific factors impacting formaldehyde resin consumption.

Examining the broader landscape of the plastics industry in Russia, the earlier-reported 2.1% increase in production for the first nine months gains context against the subsequent 11-month data. The range of 9% to 11% growth in consumption during this period underlines the market's responsiveness to plastic products. The divergent trends in imports and exports, with a surge of 10% in imports and a significant 50% decline in exports, reflect the intricate balance of domestic demand and global market dynamics affecting Russia's plastics trade.