SIBUR begins polypropylene imports to reduce deficit from Stavrolen, Lisichansk shutdowns
MOSCOW. May 10 (Interfax) - SIBUR Holding is launching temporary imports of basic grades of polypropylene to reduce the existing deficit in the Russian market due to the shutdown of the Stavrolen Oil Refinery and the Lisichansk Oil Refinery in Ukraine, SIBUR said in a press release.
"The pilot shipment will amount to 500 tonnes, with subsequent increases in imports up to 2,000 tonnes per month," it said.
"The deficit in the Russian polypropylene market arose due to a forced shutdown of several plants unaffiliated with SIBUR (Stavrolen in Stavropol Krai and the Lisichansk refinery in Ukraine), which coincided with the seasonal increase in demand from polypropylene refiners," the press release said.
"The imported volumes will be sold at market prices with a minimal commission from SIBUR. The polypropylene will be purchased from China, India and the Middle East," it said.
"It is important that we support our customers until our Tobolsk-Polymer project is put into operation. The increased production volumes at our existing sites, coupled with additional imports of polypropylene, will help to reduce the price pressure on refiners from independent traders," Managing Director and Head of SIBUR's Basic Polymers Division Sergey Komyshan is quoted as saying in the press release.
Last December, there was an explosion at Stavrolen. The company launched polypropylene production on imported material, although it is not operating at full capacity. Polypropylene output at Lisichansk was halted this April. Experts have already noted growth in polypropylene prices on the Russian market due to the resulting shortage.
In 2011, Tomskneftekhim produced 128,800 tonnes of polypropylene, while SPE Neftekhimiya, a joint venture between SIBUR and Gazprom Neft , produced 114,400 tonnes. The combined capacity of the two facilities grew in 2011 to 243,200 tonnes, an increase of more than 11% from 2010.
SIBUR expects to wrap up the construction of Tobolsk-Polymer, with a capacity of 500,000 tonnes per year, in Q3 2012. Production is scheduled for launch at the beginning of 2013.