CORONAVIRUS CHANGES THE STRUCTURE OF INTERNATIONAL DEMAND FOR RUSSIAN PRODUCTS

CORONAVIRUS CHANGES THE STRUCTURE OF INTERNATIONAL DEMAND FOR RUSSIAN PRODUCTS
15 May 2020
REC experts analyzed changes in international demand due to the effects of coronavirus.

As a result, they found out: importers began to show more interest in mechanical engineering and the chemical industry.
Additional demand for polymer packaging reappeared, despite the trend before the epidemic to replace it with an ecological one. Demand for protective clothing made of polymers and rubber, as well as detergents and surfactants is growing.

Another promising area is the field of metallurgy. For example, there has been a jump in demand for gold from countries that hold American debt securities.

Russia's timber industry also has the potential to increase export production. In the context of the spread of food delivery, medical devices and the need for medical waste disposal, today there is an increased demand for packaging paper, packaging and cardboard packaging. The demand for sanitary paper and the production of medical furniture is also growing.

Increased demand will affect the pharmaceutical, perfumery and cosmetics sectors. REC experts note an increased demand for medicines, substances for their production, as well as for soap, shower gels, wet wipes and aerosols with disinfecting properties.

High demand for mobile hospitals was noted. In addition, an increase in the supply of medical equipment is possible. It is ready to import Bulgaria, Portugal, Serbia, France, Brazil, Jordan, Azerbaijan. These products, in addition to mechanical ventilation apparatus, thermal imagers and diagnostic equipment, can be freely exported from the territory of the EAEU to all countries, taking into account compliance with the requirements of the legislation of the state of the importer.

In studies of JSC "REC" there are a number of potential areas for export. We are talking about increasing supplies for the agricultural sector. Demand for the entire line of food products is growing. First of all, on cereals, feed, oilseeds and vegetable oils. There has also been an increase in requests for the supply of ethyl alcohol. REC experts note the high interest of China in the import of meat products from Russia.

The huge potential in the sphere of light industry. It is about the production of medical masks, bathrobes and shoe covers. Despite the fact that such products are banned from export from Russia, many Russian enterprises have already reoriented their production and can become successful exporters in the future.

- Everyone felt a shock from the coronavirus, especially the international trade system. Over the course of all these months, REC analysts have carefully monitored the situation on world markets, trying to identify new potential markets. We worked with exporters literally in manual mode. As a result, we were able to ensure a geographical reorientation of a number of export supplies and to occupy new vacant sales markets. The main thing now is not to lose precious time, as foreign countries will begin to increase business and trade activity as they quarantine, ”said Veronika Nikishina, General Director of REC.

Veronika Nikishina noted several success stories. In particular, in the Republic of Udmurtia, through the anti-crisis headquarters of REC JSC, at the request of a German company, Russian suppliers of flax seeds were found. Direct negotiations have already taken place and an export contract is under consideration. A similar case relates to the supply of Russian toys to Germany, the assortment of the Russian company was placed on electronic trading floors. At the request of the Belarusian side, export contracts were concluded for the supply of feed additives for agricultural animals and poultry, vitamins, veterinary preparations and other goods, as well as for the supply of sunflower meal.
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19 May 2020
Regional News

Today we are starting a series of materials telling about Vladimir exporters. What do they produce, how do they survive in difficult times, what plans do they make, and do they consider the crisis a time for new opportunities?

15 May 2020
Regional News

REC experts analyzed changes in international demand due to the effects of coronavirus.