"Slow recovery" for Sibur elastomer unit as China demand picks up

Moscow – Sibur Holding’s elastomers sales declined 32% in the three months to end of September, but the Russian petrochemicals supplier can see signs of slow recovery.

Segment revenue fell to Rub8.9 billion (€97.1 million) during the three months, as global shutdowns by automotive manufacturers sharply reduced demand for tire rubber.

In its 3 Nov quarterly report, however, Sibur noted a “slow recovery” in the third quarter, mostly driven by "healthy growth of car sales in China."

Elastomers volumes fell 18.7% to 321 kilotonnes during the three-month period, reflecting the sale of Togliatti-based assets in the final quarter of 2019.

Over the first nine months of the year, segment revenue fell 33.4% to Rub42 billion, Sibur added.

Sibur’s elastomers operations are part of its Plastics, Elastomers & Intermediates business unit, and contributed 33% of sales within the unit.

Overall, the unit reported a 13% year-on-year decline in third quarter adjusted earnings, to Rub4.7 billion. For the first nine months of the year, the unit’s adjusted earnings fell 39% to Rub10 billion.