Russia’s chemical industry shows increase year on year
Russia shows a 13% growth of the high density polyethylene (HDPE) output in the first eight months of 2016. Stavrolen, Gazprom neftekhim Salavat and Nizhnekamskneftekhim have increased their results while Kazanorgsintez is falling behind.
Russia's production of HDPE in January-August exceeded 675,500 tonnes, which is 13% more than during the corresponding period of 2015, reports ICIS. August total HDPE production grew to 99,000 tonnes from 74,600 tonnes in July.
As for the industry's main players, Stavrolen and Gazprom neftekhim Salavat increased their output and capacity utilisation. August HDPE output at Stavrolen grew to 24,600 tonnes from 24,400 tonnes a month earlier. Total 8-month production of Stavrolen was 180,200 tonnes of HDPE, whereas a year earlier it was only 103,600 tonnes. However, the plant was not working until April 2015 due to an accident at the ethylene unit. At Gazprom neftekhim Salavat HDPE production rose to 9,800 tonnes from 8,100 tonnes in July. The Salavat plant produced 73,800 tonnes in the first eight months of 2016 versus 59,600 tonnes in January-August 2015.
Tatarstan Nizhnekamskneftekhim switched to HDPE production from linear low density polyethylene (LLDPE) only in early August. As a result, it showed a significant increase in the output (14,800 tonnes in August compared to 300 tonnes in July). The Nizhnekamsk plant produced a little over 92,500 tonnes of HDPE in January-August 2016, which corresponds to the results of 2015. Kazanorgsintez raised its HDPE output to 49,700 tonnes last month from 41,800 tonnes in July. Overall, the Kazan plant produced about 329,000 tonnes of HDPE in the first eight months of 2016, down by 4% year on year.
It was also announced that Kazanorgsintezsuspended the production of high density polyethylene (HDPE) for about three weeks. The break is caused by the scheduled maintenance work. The production gradual resumption is planned on 11 October. Earlier this year Gazprom Salavat neftekhim also shut down its HDPE production. Stavrolen and Nizhnekamskneftekhim do not plan to stop the production for maintenance this year.
Kazanorgsintez is one of the largest Russian chemical enterprises producing more than 38% of all Russian polyethylene. The company generates 540,000 tonnes a year of HDPE and 225,000 tonnes a year of LDPE.