SIBUR sees polymer demand in Far East potentially growing by 100,000 tonnes

VLADIVOSTOK. Sept 6 (Interfax) - Russian petrochemical group SIBUR is studying the market together with its participants, developing and introducing new products, such as plastic containers for storing agricultural products like potatoes and grain, polymers for fuel tanks and other specific products, the company's CEO, Mikhail Karisalov told reporters on the sidelines of the Eastern Economic Forum.

He said this could result in polymer demand growing by 100,000 tonnes in the Far East Federal District alone.

In general, the company is seeing significant development of the polymer product market amid the process of import substitution and is discussing development of polymer processing in Amur Region, Primorye and Khabarovsk Territory with the governors of these regions after the launch of its Amur Gas Chemical Complex.

Russian imports of polymers could potentially grow by 1.6 million tonnes in the period to 2028, Karisalov said. Meanwhile, SIBUR is facing increasing competition on the domestic market from Russian companies such as Lukoil, Bashneft and Titan.

SIBUR is also working with tire maker Cordiant on launching industry R&D that will make it possible to increase substitution of natural rubber with synthetic rubber. SIBUR now exports about 50% of its synthetic rubber, but is facing stiff competition from Asian countries that produce natural rubber.

Karisalov also said that prices for petroleum feedstock are fairly high now because oil companies have managed to work out exports.