Following a decline of -7.1% in 2009, the consumption of Polypropylene in Central/Eastern Europe bounced back with an amazing growth of 21.5% in 2010, on account of higher domestic and export demand for plastic products. While the area was hit hard by the global financial crisis in 2009, strong GDP growth averaging 4.1%/year is projected for the next five years, sustaining. This growth will be supported by (1) ongoing industrialization and infrastructure development, (2) strong growth in consumer products, and (3) Russia’s major investment in new oriented PP film lines.

In terms of capacity, several new PP plants have been brought on-stream in this region over the past few years and six new plants are currently being planned for the region and are scheduled to come on-stream during 2011 to 2015. New plants are planned for Russia, Uzbekistan and Kazakhstan. With these capacity additions, the region is expected to have a net surplus of PP, with net imports dropping from 995 kt in 2010 to 867 kt by 2015. Of note, CEE will move from to a net import position in 2010 of 419 kt to a balanced foreign trade position and be a net exporter of 5 kt in 2015.

Townsend’s 2011 Central & Eastern Europe Polypropylene Market Study is available now. To obtain a copy of this report please contact Frances Davidson at +1-281-873-8733 Extension 120 or email fdavidson@townsendsolutions.com .