Page 43 - RusRPTJun21

“The implementation of any of the plans being considered by the government could have a significant effect on the market, subject to their scale,” Sova Capital said in a note. “Currently, there is an intervention fund for grain, which stands at 360,000 tonnes – or less than 0.4% of annual consumption – while the maximum amount the fund is allowed to sell during a year is 1mn tonnes (some 1.2% of consumption). We intend to watch closely for more details on the potential state purchases and future pricing mechanism. Meanwhile, there has been a duty free import quota for sugar May 15 to August 31, which covers 350,000t or 6% of annual consumption.”
Despite the problems food inflation is expected to fall in the coming months as the summer gets underway and Russians traditionally grow a lot of food at their dachas. Last year Russia’s potato production was up by a third as many Russians on lockdown chose to spend it at the dacha working in the garden; privately grown potato production soared to make up two thirds of the country’s entire potato crop as a result.
4.2.2 PPI dynamics
In April 2021 compared to March 2021, the producer price index for industrial goods, according to preliminary data, was up 27% year-on-year and 2.7% m/m.
In April 2021, compared with March 2021, prices for nickel concentrates increased by 43.8% in the extraction of minerals with supplies to the domestic market, lead-zinc ores - by 31.4%, combustible natural gas (natural gas). ) - by 16.6%, iron ore blast furnace sinter - by 16.3%, natural (except technical) rough diamonds - by 13.2%, antimony concentrates - by 11.0%, iron ore pellets (oxidized) - by 10, 2%. At the same time, prices for amber decreased - by 31.1%, anhydrite - by 13.6%, natural graphite - by 13.1%.
In the production of chemicals and chemical products, prices for technical gas sulfur became higher - by 49.0%, epoxy resins in primary forms - by 43.3%, xylenes - by 32.0%, amino compounds containing an oxygen-containing functional group, except for lysine and glutamic acid - by 31.9%, benzenes - by 28.8%, styrene - by 27.1%, phenols - by 19.7%, propylene polymers in primary forms - by 18.7%, compound plasticizers and stabilizers for rubbers and plastics - by 17.6%, toluene - by 16.7%, acetic acid - by 15.0%, technical carbon - by 14.0%, styrene polymers in primary forms - by 12.3%.
An increase in prices was noted for certain types of petroleum products: for gaseous hydrocarbons, except for natural gas - by 37.7%, industrial oils - by 21.7%, other petroleum gases not included in other groups - by 20.3%, light distillates, not included in other groups - by 17.1%, other petroleum lubricating oils not included in other groups - by 16.9%, stable gas condensate - by 12.9%, diesel oils, for aircraft piston engines - by 12, 3%.
In metallurgical production, prices for rolled sections and wire rod from other stainless steels, forged, hot-rolled, hot-drawn or extruded, without additional processing, including coiled after rolling - by 21.6%, ferromolybdenum - by
43 RUSSIA Country Report June 2021 www.intellinews.com