Expert estimates of PET consumption in Russia have decreased by 50 thousand tons in 2015, and the demand may continue to fall to reach 450 thousand tons per annum in the nearest future. The PET segment has stagnated over past several years but was still one of the most promising in the plastics industry. This may soon be replaced by the recession, and the situation in the PET segment will return to that of 5-6 years ago.
The Russian PET market is traditionally oriented towards bottling applications, and the demand from major customers, producers of soft drinks and beer, is falling. The economic difficulties experienced by end-consumers result in lower sales of beverages in PET bottles. At the same time, continued pressure from government authorities requesting limitation or full prohibition of PET use for bottling of beer, is forcing breweries to reduce this type of packaging to minimize their risks.
Another noteworthy trend is the sharp decline of imported PET volume from Asia, down almost three times, and higher operation rates of Russian PET producers. These developments are caused by high volatility of ruble exchange rates that pose high currency risks in long-term supplies. Most converting companies prefer to purchase locally produced PET for rubles, especially taking into consideration serious difficulties with access to bank loans.
The crisis has negatively affected the investment activity and has led to a reconsideration or even complete cancellation of many PET production projects. Some recovery is possible in TPA segment, as the product is highly demanded in the Russian market. However, the current economic situation is unlikely to support growth in production of PET, MEG and TPA in the nearest future.
The key topic of the forthcoming Conference is to assess further developments in the Russian PET market.
INVENTRA invites all players in the PET market to participate in the event: producers, converters, consumers, engineering, trading, service, logistics and investment companies, financial institutions. The format of the event provides an opportunity for each participant to take well-balanced investment decisions.