Recycled polypropylene on the Russian market. Polypropylene market in Russia and the world People are also interested in this

Based on the results of seven months of the year, the production of polyethylene (PE) in Russia amounted to 1,085.6 thousand tons, which is 1% more than the same figure in 2018. At the same time, the production volumes of linear polyethylene (LDL) increased exclusively. In July, the total volume of PE production in Russia amounted to 146.3 thousand tons versus 167.2 thousand tons a month earlier; the decrease in production volumes was due to preventive downtime of the Angarsk Plant and Gazprom Neftekhim Salavat facilities. Thus, based on the results of January - July of this year, the total volume of polyethylene production reached the level of 1,085.6 thousand tons against 1,071.2 thousand tons a year earlier. The production volumes of LDL increased significantly, while the production of high-density polyethylene (LDPE) and polyethylene low pressure(PND) showed minimal reduction.

At the end of seven months of this year, the total volume of polypropylene (PP) production in Russia increased by 3.1% compared to the same period in 2018 and amounted to about 854.7 thousand tons. Only one manufacturer out of seven reduced capacity utilization. In July, the total volume of polypropylene produced by local polypropylene producers

The World Health Organization said there was no convincing evidence of harm from microplastics found in drinking water, the organization said in a report. The World Health Organization (WHO) does not currently consider microplastics in drinking water to be a threat to human health. Research conducted by the European Food Safety Authority and the Food and Agriculture Organization of the United Nations has shown that plastic particles larger than 150 micrometers are likely to be eliminated rather than retained in the body, while smaller particles are absorbed in small quantities by the body (0.3 %).

High seasonal demand and long-term restrictions on the production of low-density polyethylene (HDPE) pipes by key producers led to a lack of supply in the second half of August. Some sellers have raised prices, the ICIS-MRC Price Survey reported. For a number of reasons, two Russian manufacturers have limited the production of natural HDPE pipes in the summer months, while the demand for polyethylene (PE) due to the seasonal factor is at a good level. Against this background, by the end of this month the supply of material on the market had noticeably decreased, and some sellers raised prices. The situation is aggravated by the fact that there are long preventive downtimes ahead for two of the largest HDPE producers in Russia - Stavrolen and Kazanorgsintez. The key supplier of natural HDPE pipes on the Russian market is Gazprom neftekhim Salavat, which stopped its facilities in July for a month of preventive maintenance. The Bashkir enterprise came out of scheduled repairs very late and intends to focus on the production of injection molded PE from mid-September.

Imported ethylene prices in Northeast Asia fell amid the launch of new capacity in the region
Reported by ICIS with reference to market participants. Ethylene supplies are currently limited and the September supply forecast will depend on whether new plants can begin commercial production by early September. In October, potential new supplies could be offset to some extent by the completion of several plant shutdowns in China, as well as maintenance of a large cracker in South Korea. Supplies to Southeast Asia will remain constrained for the rest of the year. SP Chemicals in China and Hanwha Total Petrochemical in South Korea have yet to stabilize production at their plants, which recently began trial runs. Hanwha Total is struggling with technical problems at your factory.

Polypropylene (PP) production in North America increased in July, ICIS reports, citing data from the American Chemistry Council (ACC) and Vault Consulting. North American PP production rose 2.1% year over year in July. In the year to July, PP production in the region increased by 2.2%. Total sales of PP increased by 0.8% compared to the same period last year. From January to July, PP sales increased by 6.4%. PP exports from North America rose 85.8% year-on-year in July. In the first seven months, PP exports from the region increased by 166.1%. PP inventories in the region increased by 17% in July compared to the same period a year earlier. According to the ScanPlast review of the Market Report company, in Russia in July the total volume of production by local polypropylene producers actually remained at the level of the previous month and amounted to 122.7 thousand tons. In general, based on the results of January - July of this year, the total volume of polypropylene production in the Russian Federation reached the level of 854.7 thousand tons against 829 thousand tons a year earlier. Only Polyom reduced its production volume, and the largest increase in output was shown by NPP Neftekhimiya.

At the end of seven months of this year, import supplies of suspension polyvinyl chloride (PVC-S) to Ukraine decreased by 38% compared to 2018 and amounted to 26.9 thousand tons. At the same time, sales of Ukrainian PVC to foreign markets decreased by 7%. Last month, import supplies of PVC-S to the Ukrainian market increased to 6 thousand tons compared to 2.6 thousand tons in June; the main increase in supplies came from North American resin. In general, based on the results of January - July 2019, the total volume of suspension imports reached 26.9 thousand tons compared to 43.7 thousand tons a year earlier.

In the declining Russian automobile market, the LADA car is strengthening its position, the company’s press service reported. Thus, for seven months of 2019, in the segment of passenger cars and light commercial vehicles, LADA’s market share is, according to the company’s own estimates, 21%, which is 1% higher than in the same period last year. At the end of seven months of 2019, the company sold 203,672 LADA passenger and light commercial vehicles on the Russian market, which exceeds last year’s figures by 2.2%. In July 2019, 29,486 LADA cars were sold, which is 0.3% higher than in the same month of 2018.

In the first 6 months of 2019, the petrochemical complex of the Republic of Tatarstan shipped products worth 860 billion rubles, which is 8% more than the results for the same period last year, reports the press service of the President of Tatarstan. As reported at a meeting of the board of directors of JSC "Tatneftekhiminvest-holding" CEO Rifinat Yarullin society, TAIF Group demonstrated good results. Thus, PJSC Kazanorgsintez, part of the group, increased production volumes by 5.4%. The modernization carried out by Nizhnekamskneftekhim PJSC made it possible to increase the production of alpha-olefins, butadiene, and benzene. Due to the decline in supplies to the republic's tire factories, somewhat less isoprene rubber was produced.

Most of the batches of polyethylene (PE) and polypropylene (PP) produced at the SOCAR Polymer enterprise, a subsidiary of the state oil company of Azerbaijan SOCAR, are shipped for export, the Azerbaijani publication Caspian online reported, citing a statement from the state oil company SOCAR. Thus, Azerbaijan exports PE and PP mainly to Turkey, Russia, Ukraine, Belarus, Poland and Lithuania. As noted in the state-owned company, in January - June of this year, about 52 thousand tons of PE and PP were exported.

Ukrainian enterprises in July increased production volumes of paints and varnishes by more than 10%, reports Lkmportal. Despite the positive dynamics, the output indicator in January-July was 2.2% lower than in the same period in 2018. According to the Ukrainian Statistics Service, the industrial production index in July compared to June was 99.4%, in July 2018 - 98.9%, in January-July - 100.4% compared to the same period in 2018. There is an increase in the production of chemical products. In July, compared to June, the figure was 102.7%, in July 2018 - 99.4%, for seven months compared to January-July 2018 - 100.1%. Manufacturers of paints and varnishes became one of the drivers of Ukrainian chemistry. Production volumes of paints and varnishes based on polyacrylic or vinyl polymers, dispersed or dissolved in an aqueous medium (including enamels and polishes) in July amounted to 7.7 thousand tons, which is 14.9% more than June and 10.7% less July 2018. Over seven months, enterprises provided the market with 44.3 thousand tons of aquatic materials - 2.2% less than during the same period in 2018. Production of “paints and varnishes, including enamels and polishes, based on polyesters dispersed or dissolved in volatile organic solvents (except those with a solvent content of more than 50% of the mass of the solution)” in July reached 5.3 thousand tons - by 13 .4% more than June and 1% more than July 2018. In January-July, organic production volumes amounted to 30.7 thousand tons (-2.2%). At the end of the first half of 2019, enterprises produced 25.4 thousand tons of solvent-based materials (-2.9% compared to January-June 2018) and 36.6 thousand tons of high pressure coatings (-0.3%). In June, production volumes amounted to 4.7 thousand tons (-23.3% compared to May 2019) and 6.7 thousand (-8%) respectively. It was previously reported that in July, Russian enterprises increased the production of paints and varnishes by 12.4% compared to the same period in 2018. From January to July, enterprises produced 667 thousand tons of polymer-based coatings.

Compared to January - March, shipments here increased by a third - from 15.9 million tons to 21.2 million tons of oil, according to Rosneft’s IFRS report. Supplies to Europe, on the contrary, fell by 9.4% - from 16 million tons to 14.5 million tons. If we compare it with the same period last year, the growth in exports to Asia will be even more significant - 1.5 times, and supplies to Europe increased by 1.5%. Until mid-2014, Asia was not a priority region for Rosneft: supplies there accounted for only 30-40% of shipments to Europe. But then the company reconsidered its priorities and by the beginning of 2018 it had equalized the load in both directions. And in October last year, Rosneft announced that for the first time in its history it began to supply and earn more in Asia than in the traditional market. As a result, in the second quarter of this year, Rosneft’s revenue from the supply of raw materials to Asia amounted to 596 billion rubles, while to Europe - 451 billion rubles. It was previously noted that Russian President Vladimir Putin approved the provision of benefits at the Priobskoye field not only for the site of Rosneft, the largest state oil company in the Russian Federation, but also for Gazprom Neft. Gazprom Neft is developing the southern part of the Priobskoye field, Rosneft is developing the northern part, the deposits' reserves are classified as hard-to-recover. Rosneft produced 26 million tons of oil there in 2018, Gazprom Neft - 11.5 million tons. Rosneft is the world's largest publicly traded oil company. The company accounts for about 5% of global oil production, and its proven reserves in the international category will exceed 5 billion tons of oil equivalent. The structure of Rosneft includes the Angarsk Polymer Plant, the Lisichansky Oil Refinery after the acquisition of TNK-BP and Ufaorgsintez (part of the Bashneft structure) after the closing of the deal to purchase Bashneft on October 12, 2016. Rosneft's main shareholder is state-controlled Rosneftegaz (50% plus one share), with British BP owning another 19.75% of shares.

The ministry worsened its forecast for this year the most, admitting that some of the tasks associated with the May presidential decree would not be able to be completed in 2019. This is stated in the updated forecast of socio-economic development until 2024, which was announced at a briefing by Minister of Economic Development Maxim Oreshkin. According to him, the forecast was approved by the Ministry of Finance and submitted to the government. Slowing aggregate demand, a weak global economy and a deteriorating investment climate further weakened already sluggish economic growth in the first half of 2019. The synchronized tightening of fiscal and monetary policies led to a weakening of demand, explains the Ministry of Economic Development. And although in the second half of the year the economy will still accelerate and grow by the previously predicted 1.3% for the year, several key indicators will deteriorate significantly. Thus, real incomes of the population will again hardly grow - by only 0.1% against the 1% growth expected in April, investments will increase only by 2% (April forecast - by 3.1%), and will grow more slowly industrial production, and the poverty level will be higher by 0.5 percentage points than expected, and will amount to 12.5%. In 2020, the Ministry of Economic Development still expects the economy to accelerate, albeit at a slower pace than previously expected - up to 1.7% (0.3 percentage points lower than the April forecast), but already in 2021 GDP will grow above 3 % until 2024 - mainly due to increased investment. And although in 2019-2020 investments will grow significantly slower than the Ministry of Economic Development expected, already in 2021 their growth rate will accelerate to 6.5%, then their growth will be above 5%, and by 2024 their share in GDP will reach 25% . To achieve this, the Ministry of Economic Development proposes to improve the investment climate, including by reducing administrative barriers and increasing trust in law enforcement officers. And also to increase the efficiency of the labor market and the public sector, accelerate technological development, develop competition, and modernize public administration. It was previously noted that, according to a review by the Ministry of Economic Development (MED), in the second quarter of 2019, the Russian Federation’s GDP “continued to show weak dynamics” - 0.8% in annual terms (after 0.5% in the first quarter). According to the results of the first half of the year, the Ministry of Economic Development estimated GDP growth at 0.7%. As Market Report reported, the International Monetary Fund (IMF) has lowered its forecast for Russian economic growth in 2019 to 1.2%, compared with an April estimate of 1.6%. Also The World Bank(WB) in June again reduced its estimate of Russia's GDP growth in 2019. According to World Bank forecasts, the country's GDP growth rate will be 1.2% (a decrease of 0.3% compared to April forecasts), as follows from the report "World Economic Prospects: Rising Tensions, Declining Investments." At the same time, forecasts for GDP growth rates for 2020-2012 remained unchanged - at 1.8%.

SKB Biryusa has launched single-chamber mini-refrigerators for short-term storage of food, according to the company’s website. The range includes models with volumes from 46 to 150 liters. “Another big advantage of mini-refrigerators is their small size and weight: their height is only from 49.2 to 86.5 cm. Such refrigerators can easily be placed in a small kitchen, office, pharmacy or hotel,” the report notes. Earlier it was reported that recently the Chinese company Haier launched a plant for the production washing machines with a capacity of 500 thousand units annually in Naberezhnye Chelny, Tatarstan. Krasnoyarsk refrigerator plant "Biryusa" is one of the largest manufacturers of refrigeration equipment in Russia. The main activities of the Company are the production of household refrigerators and commercial refrigeration equipment. The Biryusa refrigerator plant has a full cycle production - more than 85% of the parts are made independently from materials and components from well-known global manufacturers, such as BASF, Danfoss, ACC, DOW, Ticona, Ilpea, Samsung. The production is equipped with equipment from leading companies from Germany, Italy, Japan, and Korea.

Negotiations on September supplies of suspension polyvinyl chloride (PVC-C) started on the Russian market in the middle of this week. Local producers have announced price reductions, and often they are quite significant. In July - August, prices for Russian PVC on the market reached a historical maximum due to good seasonal demand and planned preventive shutdowns of two large productions in Sayansk and Sterlitamak. High prices for domestic raw materials led to a multiple increase in import volumes. And it was the large volumes of imports on the eve of the end of the high season that became the main reason for the decline in prices of Russian PVC for September deliveries. In some cases, the price reduction reaches 5 thousand rubles. per ton.

Provided by the organizing company.

Capacity utilization for the production of basic plastics is approaching the limit, and the active growth in the supply of Russian raw materials will cease. Processors point to the narrow range of brands and are concerned about the high cost of domestic polymers. Manufacturers are conveying their desire to support the domestic market by continuing to price their products in accordance with global parity.

Fourteenth International Conference "Polyethylene. Polypropylene 2017", organized by INVENTRA, took place on March 21 in Moscow. The event was held with the support of the Ministry of Industry and Trade of Russia and the Polyplastic Group. The partners were the companies Centropolymer, OMIPA, Milliken Europe, Communications, and the magazine Polymer Materials became the information sponsor.

“The cross-cutting issues of the polyethylene and polypropylene markets pushed us to unite the main players of these segments on one site,” noted the Managing Director of the CREON Group in his welcoming speech Sergey Stolyarov. He recalled the development by the Ministry of Industry and Trade of a road map for the development of plastics processing until 2025 and called for active participation in the creation of one of the main documents of the sub-industry. “We have already started working and are ready to convey our opinions to the regulatory authorities,” he emphasized.

The event was opened by an overview report on the state and main trends of the Russian polypropylene and polyethylene market, which was traditionally presented by the director of the INVENTRA Analytics Department Lola Ogrel. The total potential for the production of two basic polymers (PP and PE) in Russia is 3 million 300 thousand tons, while the number of manufacturers is limited to ten enterprises, only four of which produce both polymers.

In 2016, polypropylene production increased by 7.5% and amounted to 1 million 380 thousand tons. The PP market has been actively developing over the past four years thanks to the implementation of two new projects - Sibur-Tobolsk (500 thousand tons) and Poliom (210 thousand . T). Today, growth limits have been exhausted, capacity utilization has reached 97% and is very close to the critical level. In these conditions, domestic enterprises turned their attention to high-margin products. At the end of 2016, copolymer production in Russia reached a record 280 thousand tons, an increase of 12% compared to last year. If in 2010 copolymers accounted for 9% of the total PP production, then in 2016 it was already 20.3%.

Polyethylene production added 7% to last year's result and reached 1 million 716 thousand tons, with capacity utilization at 91%. The production of low-density polyethylene in 2016 increased by 10%, exceeding 1 million tons, but still did not reach the level of 2013. Last year, NKNK launched a modernized production of alpha-olefins. As a result, the amount of linear PE increased by 1.6 times and reached 73.5 thousand tons. However, despite the positive dynamics, the linear polyethylene segment remains the most import-dependent. Production of high-density polyethylene practically remained at the level of the previous year, decreasing by only 6 thousand tons.

Despite the increase in product output in 2016, the PE market is stagnating in terms of launching new capacities. Thus, over the past decade, not a single new enterprise has been put into operation; modernization of existing production facilities has helped. Therefore, force majeure at any of the operating plants can throw the market out of balance and lead to a sharp price jump, which is what we observed in April last year in the LDPE market.

Recently, domestic producers of base polymers have felt much more confident than consumers. One of the main reasons is the existing pricing policy in the field of sales of PP and PE. Prices on the domestic market were kept in accordance with import parity, despite the fall in oil prices and the decline in the cost of raw materials (ethylene and propylene). So, in 2010-2014. the difference between the cost of polymers and raw materials for their production was in the range of 20-30 thousand rubles, and in 2016 the spreads increased to 47 thousand rubles for polypropylene and 55 thousand rubles for polyethylene.

Prices for raw materials and polymers, consumption growth rates

In addition, the development of Russian processing was hampered by: high loan rates and the complex process of obtaining them, a narrow brand range of domestic raw materials, including additives and fillers, as well as the lack of targeted state program to stimulate processing.

Under the current conditions, the PE and PP processing markets have developed differently. The demand for polypropylene has been increasing and has grown by 50% over the past 7 years. Polyethylene processing expanded until 2013 at the expense of the pipe segment and declined along with the demand for PE pipes. The turning point for the polyethylene market (but not pipes) was 2016, which showed, albeit a small, but an increase of 70 thousand tons. This became possible due to the displacement of final imported polymer products due to the high dollar exchange rate.

Speaking about the domestic polymer pipe market, Director of the Pipeline Systems Department of the Polyplastic Group Kirill Trusov added that since the peak of production in 2013, the market has shrunk by 32%, but towards the end of 2017 it will slowly begin to revive. By 2021, the market is more likely to go up again and reach the 2013 level of 400 thousand tons. He also added that for successful development the segment needs PE100 grades with increased resistance to crack propagation and flow resistance, PERT, as well as block copolymer PP for non-pressure applications.

Senior technology manager at Lukoil Oksana Borisova reported that in March 2018, Stavrolen plans to begin production of PE 100. Most likely, it will be natural rather than carbon black-filled polyethylene. Regarding polypropylene, most Russian manufacturers have the technological capabilities to produce block copolymers and static copolymers, but this is often not financially profitable due to the high costs of production and the use of exclusively imported additives.

In the segment of both infrastructure corrugated pipes and in the segment of pressure pipes for water supply and heating systems, the Pro Aqua company ended 2016 with growth. According to the Marketing Director Mikhail Bondarenko, the number of consumers has increased, the plant has increased its capacity after re-equipment. In addition, import substitution and export directions helped. This year, the plant is also resuming production of HDPE pipes up to diameter 63.

Shares of polyethylene types (%) in the total volume of commercial products of NKNKH

(data from Nizhnekamskneftekhim PJSC)

Global producers of linear polyethylene are also not standing still. A number of projects have been announced in America (including ExxonMobil with a capacity of 1.3 million tons), in the Middle East, and China, said the head of the ChemOrbis representative office in Russia and the CIS Maria Smirnova. In addition, in the spring of 2017, two large plants in Iran with a capacity of 300 thousand tons each will be launched: Mahabad Petrochem (HDPE and linear PE) and Kordestan Petrochem (LDPE). Over 5 years, the capacity of Iranian PE production plants will increase by 3.5 million tons, provided that all investment projects are launched. Iran will add an additional 600 thousand tons of polypropylene by 2019. The growth of capacity and production of polyolefins on the world market directly affects pricing in Russia, but this is not the only factor. According to Ms. Smirnova, effective decision-making in conditions of price volatility should be based on timely analysis of commodity markets (oil, gas, naphtha, monomers), which makes it possible to predict the actions of polymer producers by margin. In addition, through trading and analytical tools, spot transactions should be monitored daily, which will increasingly appear on contract markets due to the redistribution of volumes between regions.

According to the general director of the Samara "Plant of Packaged Products" Hamlet Oganesyan, the price for domestic polyethylene is overestimated by manufacturers, and consumers do not have the opportunity to influence the current situation. Today, there is a favorable trend for processors in reducing the cost of PE, but this trend is unlikely to be long-lasting. Against the backdrop of a revival of the economic situation, an increase in consumption is expected, and, most likely, it will be accompanied by rising prices.

According to the general director of the Centropolymer company Alexey Zavyalov, The existing trend of lowering the cost of raw materials against the backdrop of growing competition will develop. After the launch of new production capacities and an increase in production, prices for raw materials will go down.

Kazanorgsintez, as a producer of base polymers, “monitors Iranian projects.” Head of Analysis and Planning Department Alexander Leontyev noted that the company undoubtedly monitors imported materials and their price spreads. According to him, pricing in Russia today is dictated by the market; for Kazanorgsintez, the priority is to saturate domestic demand, and not export directions, which may have high margins due to the difference in exchange rates.

General Director of Sprint-Plast Evgeniy Bronshtein noticed that, for example, in Europe the price of film HDPE for a local consumer is approximately 83 rubles, while in Russia it is 95 rubles. Perhaps the abolition of import duties could stimulate a reduction in prices on the domestic market, he believes.

Conference participants shared their opinion on how much the cost of base polymers influences the growth of processing in the Russian Federation during an interactive survey.

The issue of customs clearance also turned out to be very relevant for market participants. Head of the Analytical Department of the Federal Customs Service of Russia Alexander Guskov I tried to clarify the situation. Thus, according to him, in order to simplify customs administration, the Decision of the Board of the Eurasian Economic Commission No. 139 came into force in December 2015, which allows, subject to certain conditions, not to assign an additional check of customs value. In particular, if the accuracy of the indicated prices has been proven once for previously imported identical goods under one contract, additional checks for all subsequent shipments are canceled. In this case, registration must take place at one customs post and the declarant is obliged to independently report the existence of a precedent. It is interesting that only 10% of foreign trade participants importing the 39th group of goods declared their right to simplified import.

The FCS representative also noted that the agency is extremely interested in having up-to-date price information, and the volatility of indicative prices is within 20%. The Federal Customs Service does not certify data sources, so participants in foreign trade activities are free to choose materials to prove the customs value of goods.

Improvement legislative framework and government regulations should find practical application in uniform standards that will be followed by all customs clearance points. Today there is a problem when real life the process of customs clearance of goods under the same contracts at different posts takes place in accordance with different requirements, noted Mr. Zavyalov. In particular, the untimely return of funds frozen as a result of additional checks on the cost of goods, which companies cannot receive for up to 8-9 months, is painful for business. In addition, the General Director of Centropolymer drew attention to the problem of imports within Customs Union. According to him, supplies through Belarus and Kazakhstan are carried out on more preferential terms. The above facts not only disrupt the competitive environment, but also stimulate domestic companies to change the geography of supplies, which leads to losses in the Russian budget.

Discussing the container and packaging segment, chief development technologist of the World of Packaging company Olga Kovalenko noted that the Russian Federation already has good random, homo and block copolymers, now it is worth moving further towards brands that increase productivity. “A sufficient selection of high-quality brands of PP appeared largely thanks to the hard work of NKNK specialists, who really work a lot with consumers. But the range of domestic polyethylenes is very small, especially for blown extrusion. We are really looking forward to new brands with improved properties from manufacturers,” the expert emphasized.

Head of production of the company "Control package" Mikhail Shulyakov does not see a rosy picture in the cling film market for the next two years and laments the inability to influence the cost of raw materials. According to him, “for Lately The quality of Waterfall Pro, Biaxplen, and Euromet films has noticeably decreased. Waterfall Pro misses delivery deadlines. Polyethylene raw materials are not always available in terms of volume and cost, because manufacturers are focused on foreign markets, and the price of raw materials is determined according to the notorious import parity. At the same time, the cost of raw materials for export is approximately 15-20% lower than domestic.”

Head of Product and Technological Development, Directorate of Basic Polymers, Sibur Konstantin Vernigorov noted that Biaxplen has set a course for portfolio diversification and is actively working to introduce new types of film products to the market and improve the quality of product solutions.

The current polypropylene production capacity of four Sibur plants (including joint ventures) is 970 thousand tons, Mr. Vernigorov continued. In 2016, the reconstruction of HDPE production at Tomskneftekhim was completed, and in January 2017, a new brand of special grades of polypropylene Sibekh was introduced. The line offers products for thermoforming, injection molding, raffia, bopp and cast films, for the production of polypropylene hot and cold water pipes, non-woven fiber.

Director of Science and Development "Polyplastic" Mikhail Katsevman reported that the domestic market of composite materials based on polyolefins in 2016 reached 250 thousand tons, showing 3-5% growth compared to last year. In the total consumption of polypropylene and polyethylene, composites occupied approximately 10% and 15%, respectively, which is associated with the active use of polyethylene coatings for main pipelines made by compounding. For 2017, the expert does not predict significant growth, but rather it is worth talking about stabilization of production and consumption volumes, although an increase in car production may change this picture for the better.

More than half of polypropylene-based composite materials (51%) are used in the automotive industry, and, despite the decline in the automotive market, the percentage continues to grow as the amount of these materials in the car increases, approaching the average European level. Thus, with a 10% reduction in auto production in 2016, the consumption of polymer materials fell by only 5%. At the same time, the share of use of domestic materials has increased significantly.

The speaker drew the audience's attention to the fact that a noticeable increase in the production of composite materials in the next few years can only be expected in the context of an intensive export program, which can only be carried out with the support of government agencies.

The trend of import substitution of PP and PE by automakers was confirmed Guzel Kirsankina, engineer for localization of raw materials and materials of the product development department of Ford Sollers Holding. Today, the overall level of component localization is more than 50%. In 2016, 86% of localized polypropylene parts were produced using Russian polypropylene. This year, the company plans to use entirely domestic raw materials for parts produced at Russian sites. At the same time, foamed polypropylene is supplied exclusively for import. The share of domestic copolymers in Russian-made components was at 26%, but should increase to 24% during the year. Consumption of domestic HDPE for locally produced parts is 81%. The expert also noted the need to develop the production of domestic copolymers, foamed polypropylene, modifiers and fillers.

Managing Director of OMIPA Fabio Cazzani spoke about the cellular polypropylene market, which in Russia today is in its infancy. In Europe, the annual production of cellular PP exceeds 150 thousand tons, while in Russia it barely reaches 10 thousand tons. Potentially, the Russian market can increase in volume by 3-4 times, becoming a driver for the development of the rigid packaging segment. Technological solutions in the production of honeycomb sheets, in particular from polyethylene and polypropylene, are offered by OMIPA.

Dariusz Lukaszewski, regional manager for Central and Eastern Europe at Milliken, presented clearing and nucleation technology for the production of ultra-transparent polypropylene. Packaging made from this material is plastic, lightweight and low-density, recyclable, resistant to damage and various temperatures. This technology allows the widespread use of polypropylene to replace other materials.

3M Dynamar TM spoke about the technology for creating new grades of polyolefins with improved consumer properties using fluoropolymer additives Roman Vasiliev, leading technical expert at ZM Russia. In particular, additives can be used to improve base grades of polymers, since they are not consumed during the extrusion process, showing their positive effects both at the stage of production of polyolefin granules and improving the processing process for the end user. In addition, 3M Dynamar TM reduces the pressure on the filter, reduces torque and current loads, prevents polymer degradation, which allows increasing the productivity of granulators, and also improves the quality of mixing the polymer with pigments, eliminates carbon formation, helps eliminate defects on the surface, and reduces film thickness from end consumers.

Development trends in global propylene production highlighted Boris Gaevsky, head of the information and analytical department of the magazine “Eurasian Chemical Market”. He emphasized the reduction in the share of steam cracking and FCC processes against the backdrop of an increase in targeted technologies for propylene production. In addition, he noted the emergence and expansion of the specific share of new types of raw materials for propylene production: propane for the PDH process, coal and methanol for MTO/MTP processes, ethylene and butylene for metathesis.

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