Propylene market in Russia

Earlier Report Observations

From 2018 to 2020, the Russian propylene market volume increased from 1.9 million tons to 2.4 million tons, driven largely by the launch of new production facilities with capacities up to 510 thousand tons per year. This expansion was supported by the dominant position of major producer SIBUR, which benefited from Russia's extensive feedstock base and established technology, helping maintain competitive market conditions.

Growth continued into 2021, though at a slower pace, with the market reaching 2.5 million tons. However, in 2022, geopolitical sanctions and associated disruptions in trade, logistics, and currency exchange led to a contraction, pulling market volume down to 2.4 million tons as import and export flows were severely constrained.

A recovery followed in 2023, with market volume rebounding to 2.6 million tons as production of base polymers resumed after the previous year's decline. By 2024, the market adjusted through ongoing investments in new capacity and policy shifts aimed at import substitution, which supported domestic production even as market volume settled at 2.5 million tons.

Production propylene in Russia

In kind, 2018-2021, K t

Russia's propylene production has grown for the third consecutive year. In 2021, production reached 2 676 K t, representing an 8.7% year-over-year increase. Over the period from 2018 to 2021, production rose by 35.6%, with a compound annual growth rate of 10.7%.

Annual dynamics of production in Russia in kind, 2018-2021, K t

Exports propylene from Russia

Exports in kind, K t

The market exhibited volatility during the observed period. Export volumes reached their lowest point in 2020 and peaked in 2021, with a 3.1-fold difference between these years. In 2021, propylene exports from Russia totaled 169.2 K t, a 208.0% increase compared to the previous year. The minimum value was recorded in 2020 at 54.9 K t, with the largest decline of 34.9% occurring that year.

Annual dynamics of product's exports from Russia in kind, 2018-2021, K t

From 2018 to 2021, the main buyers of Russian propylene in volume terms were Poland, accounting for 36.4% of exports, Belarus at 18.5%, and Finland at 16.8%. Together, these three countries comprised 71.7% of total exports.

Structure of product's exports in kind by countries, 2018-2021

World map of product's exports from Russia in kind, 2018-2021

Exports in value, M $ US

Market performance showed noticeable fluctuations during this period. Export values hit a low in 2020 and peaked in 2021, with a 4.5-fold difference between these years. In 2021, foreign propylene supplies from Russia amounted to 147.7 M $ US, marking a 351.4% improvement from the previous year. The minimum value was recorded in 2020 at 32.7 M $ US, with the largest decline of 49.1% occurring that year.

Annual dynamics of product's exports from Russia in value, 2018-2021, M $ US

In value terms from 2018 to 2021, the leading destinations for Russian propylene exports were Poland, representing 34.0% of exports, Belarus at 22.2%, and Finland at 19.5%. Collectively, these countries accounted for 75.8% of total export flows.

Structure of product's exports in value by countries, 2018-2021

World map of product's exports from Russia in value, 2018-2021

Imports propylene to Russia

Imports in kind, K t

The data reveals irregular changes, indicating a volatile market environment. Import volumes reached their lowest point in 2018 and peaked in 2020, showing a 70-fold swing. In 2021, imported propylene volumes in Russia reached 0.2 K t, down by 90.6% year-over-year. The maximum value was recorded in 2020 at 2.1 K t, with the largest increase of 3 065.7% occurring that year.

Annual dynamics of product's imports to Russia in kind, 2018-2021, K t

Throughout 2018 to 2021, Belarus concentrated 80.7% of total imports in volume terms, while the remaining volume was distributed among many countries with smaller individual shares.

Structure of product's imports in kind by countries, 2018-2021

World map of product's imports to Russia in kind, 2018-2021

Imports in value, M $ US

There were noticeable fluctuations in market performance during the period. Import values varied 10.6 times from the low in 2018 to the high in 2020. In 2021, foreign propylene supplies to Russia registered 0.6 M $ US, which is 68.2% lower relative to the prior year. The maximum value was recorded in 2020 at 1.9 M $ US, with the largest increase of 891.3% occurring that year.

Annual dynamics of product's imports to Russia in value, 2018-2021, M $ US

In value terms from 2018 to 2021, the principal destinations for imports were Belarus, accounting for 44.5% of imports, the United States at 23.9%, and Italy at 16.7%. Together, these countries jointly accounted for 85.1% of total import flows.

Structure of product's imports in value by countries, 2018-2021

World map of product's imports to Russia in value, 2018-2021