Ukraine’s petrochemicals industry has been hit by plant closures and poor domestic and external markets. However, BMI believes the situation could be turned around in H213 following a government deal that could reopen plants and spur investment in downstream plastics conversion sectors. Ukrainian petrochemicals output continues to perform poorly in the first four months of 2013 with chemicals sales down 19.1% y-o-y in the period. Plastic production fell by 55% y-o-y to 90,500 tonnes, following an 11.4% fall in output to 487,500 tonnes in 2012. The decline is mostly related to the suspension of activity at Karpatneftekhim’s complex.
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