In ten months of 2015 only, Russian polypropylene plants jointly exceeded one million tons of production, demonstrating two-digit growth despite the general downturn in industrial production in the country. New capacities and ruble’s devaluation provide the opportunity to increase output, to replace imports and to increase export. However it is too soon to consider the situation in the segment to be a straightforward success: it is only the PP homopolymer production that has exceeded local demand, while production of copolymers continues to be deficient. What are the plans of the main Russian PP producers with respect to expanding the product line? How will the importers fare in 2016?
The main discussion point between polypropylene producers and converters will foreseeably be the price volatility in the domestic market. The excess production has improved availability of the local material, but export remains attractive due to weaker ruble and pushes the local prices up. Which price scenario should be expected in the homopolymers segment: «export minus» or a premium in the local market?
The relative progress in feedstock affordability is opposed by the weak domestic demand. The rapid growth cannot be expected in the segments of packaging, pipes and automotive industry. The PP converters will have to compete for the market share on falling demand and will continue to look for new product applications. Which competitive advantages can be utilized in 2016, and which support measures should be expected?
The following topics will be discussed at «Polypropylene 2016» Conference:
• Russian and global markets of PP
• Changes in polypropylene production structure in Russia
• Market capacity and trends in consumption
• Volumes and structure of import and export
• Consequences of possible inclusion of plastics in the sanctions package against Turkey
• Price situation in domestic and foreign markets of polypropylene
• Interdependence of producers, converters and traders in the PP market in the new economic environment
• Investment attractiveness for various PP converting businesses
• Prospects for new converting products and expansion of application areas
INVENTRA invites all the stakeholders in the polypropylene market: producers, converters, consumers, engineering, trade, service, logistics and investment companies, financial institutions and everyone interested in the development of the Russian industry.