Russia’s SIBUR boosts domestic polymer sales as exports decline

by Alan Reid January 31, 2024

written by Alan Reid January 31, 2024

SIBUR, Russia’s largest producer of polymers and rubbers, has increased its product supply to the domestic market to meet the rising local demand driven by expanding manufacturing businesses.

In a press release published on Monday, SIBUR said that the share of the Russian market in its sales reached 75% in 2023. Since 2021, the company has consistently been reducing export sales and increasing sales in the domestic market.

SIBUR said that the consumption of polymers in Russia showed a record growth of 10% in 2023, at least double the pace of previous years, and reached 4.4 million tonnes, with the biggest increase in demand recorded in the transport industry.

“Joint programmes of SIBUR and its clients, such as import substitution of polymers, expansion of processing capacities, as well as replacing traditional solutions with polymers, contributed to about 4% of this growth,” SIBUR said in the press release.

The company had previously said it expected an annual growth of general demand for polymers in Russia to average 5-6% in the run to 2028, reaching around 6 million tonnes a year.

This is above the forecast for global annual growth of demand for polymers that is seen at 3.3% in the coming years.

In 2023, Russian producers of consumer goods, including home appliances, shoes and toys, showed a 7% increase in demand for polymers, according to SIBUR.

Other industries, such as healthcare, agriculture and the construction sector, also stepped up their purchases of polymers.

SIBUR had previously stated that it could substitute around 60% of the imported polymers used in medical products in Russia.

Over the last five years, the company has increased its consumption of LPG, which is the main raw material for the production of polymers and elastomers, by four times, resulting in a reduction of LPG export shipments.

Image: Sibur Tobolsk Polymer plant, Russia.