The “main evil” for the petrochemical market – both producers and buyers – is not the rise in prices in 2021, but the speed and frequency of their changes, the head of Sibur believes. Long-standing established system is failing, all world trade is undermined
Dmitry Konov
(Photo: Mikhail Grebenshchikov / RBC)
Dmitry Konov, the CEO of Sibur Holding, believes that the “main evil” for the petrochemical market in 2021 is not price increases, but the speed and frequency of price changes.
“The main evil – and this is true both for us and for the consumer – is not some absolute level of prices, but the speed and frequency of their changes. When prices rise and fall by 30% month by month, it’s bad, “he said in an interview with RBC.
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This year, there were quite a few such phenomena as interruptions in American production (due to the Uri storm), an accident at the condensate preparation plant for Gazprom’s transport in Urengoy, and force majeure events in Europe, which led to record gas prices (almost $ 2 thousand for 1 thousand cubic meters). “As a result, the long-standing established system is failing. This manifests itself in the hypervolatility of product prices, leading to abnormal shipping costs from one geography to another. In this sense, all world trade has been undermined, ”says Konov.
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