On the background of a global fall in demand for synthetic rubber, the Deputy Chairman of the government of the Russian Federation Yuri Borisov, who oversees the petrochemical industry, has instructed the Finance Ministry, economic development Ministry, energy Ministry and Federal Agency for state reserves to study the issue of procurement of synthetic rubber in the reserve from Russian producers. Earlier, petrochemical plants proposed to the Russian government to redeem them for two years synthetic rubber for tire production, and with economic recovery the producers of raw materials for the tire industry promise to buy their products for the price of 5-6% higher than that at which it will purchase in the reserve.
“Our workers put about 80 percent of synthetic rubber in the interests of the Western manufacturers of tires. And there today, the demand fell, the raw material is strategic, and we have it in the nomenclature of the state reserves, – said Yuri Borisov. The reserve may be a certain damping mechanism: in a difficult moment, he helped support the Russian industry, and even profit will this product be created.”
Note that in its latest quarterly report of PJSC “Nizhnekamskneftekhim”, which is one of the largest petrochemical companies in Eastern Europe and occupies leading position among domestic producers of synthetic rubbers for the tire industry, reported a sharp drop in global demand for its products in March-may 2020 from downtime of more than 120 tire plants, which comes Nizhnekamsk raw materials. At the end of the year “Nizhnekamskneftekhim” forecasts decrease of world production of tires to 45-50 million units and, as a consequence, the demand for synthetic rubber, at least 2 percent.