Russia Observes A Significant Increase in Imports of PVC in Jan-Apr 2021, Exports down by 11 percent.
- Journalist: Jaideep Kumar
Russia’s Polyvinyl Chloride (PVC) imports touch 60% in Jan-Apr 2021 whereas exports tumbled by 11%, despite of the rise in prices of the chemical in the region. The country has also seen the rise in PVC production by 0.2% year on year basis. Prices of the chemical mainly depend upon the raw materials and demand from downstream segments. The increasing demand from the end user industries owing to the chemical’s wide applications in different sectors has escalated the market fundamentals of PVC despite the consistent increment in its prices.
The increase in the import and decline in the export of PVC clearly indicates the extent of increase in the local demand and consumption of the polymer. PVC demand in Europe and Northeast Asia increased by 6.50 and 11.40 percent respectively in April 2021 due to limited availability. Due to the ongoing COVID pandemic, many constructions and infrastructure development activities were shutdown in 2019. With gradual re-opening of the market since H2 2019, the demand of the polymer has increased prominently due to its wide applications in construction sector where it is used in pipes and fittings, power, data telecom wiring and cables, wall coverings, floorings, etc.
PVC’s consumption from the healthcare sector also increased with its high usage in pharmaceuticals, surgical instruments, drug delivery and medical packaging. The pick-up of the automotive industry also stimulated the sudden increase in the demand of the polymer where it is extensively used in seat coverings, underbody coating, interior door panels & pockets.
As per ChemAnalyst, “Prices of PVC in Russia are expected to remain in a stable to firm range due to its increasing demand in the region as it has wide applications in different end user industries. The demand of the polymer has shown a sudden increase in Russia owing to the re-opening of the industries and market. The decline in the export of PVC has also been observed as the country has been inclined towards catering the local demand”.