Sibur sees risk of quick oversaturation of China’s petrochemical market

TASS Russian News Agency | May 25, 2020 at 4:12 PM

/Update/

MOSCOW, May 25. /TASS/. Sibur sees the risk of quick oversaturation of the Chinese petrochemical market in view of declining exports from the country, a spokesperson of the Russian petrochemical company told TASS on Monday.

"We see the Chinese market is recovering: shipments take place and the demand for polymers is growing. At the same time, we see the risk of quick oversaturation of the China's market in view of export decline. The Chinese industry focuses on export to a greater degree. Europe and the US are unable so far to provide China with the sufficient level of demand in view of continuing lockdown or early phases of withdrawal from it," he said.

Sibur has temporarily refocused a portion of supplied volumes to the Chinese market in view of contraction of the demand for petrochemical products in Europe.

"The polymer business gives more flexibility to the company in terms of product sales and quick change of supply routes. Furthermore, we see more stable demand exactly for polymers during the crisis," the company said.