EPDM Imports Expected to Sustain the Uptrend in Q3
Intro: From January to July 2024, China’s EPDM import volume increased Y-O-Y. With the stable production of overseas units and the approaching of the traditional peak season, import arrivals are expected to continuously increase.
Imports
According to data released by GACC, the EPDM import volume reached 14,986.16mt in July, up 25.55% Y-O-Y. The average import price was $2,170.44/mt, up 3.01% Y-O-Y. The total import volume from Jan-Jul was 92,742.33kt, up 12.28% Y-O-Y. The increase in imports mainly came from Saudi Arabia and South Korea.
In terms of trading partners, Saudi Arabia accounted for the largest proportion of China’s imports of EPDM in July 2024, accounting for 46.22% of the total import volume, about 6,927.03mt. The second was South Korea, accounting for around 31.52% of the total imports with the import volume of 4,723.55mt. The import volume from Japan was 1,510.26mt, accounting for 10.08% of the total import volume. With the stable production of Petrol Rabigh, the output of Saudi Arabia increases significantly, but the shipment is still affected to some extent. Overall, the arrivals of Saudi Arabia are expected to increase significantly in the later period.
In terms of import trade mode, general trade still ranked first, accounting for 77.75% of the total with about 257,354,080mt of EPDM imported via this mode, which increased by 19.38% Y-O-Y. The import volume via logistics goods in areas under special customs supervision was 2,866.41mt, accounting for 19.13% of the total. This part involves the transfer of goods from bonded areas to domestic circulation. Under the weak domestic demand and the declined consumption of imported goods, the inventory at ports may ramp up in the later period.
Exports
According to the data released by GACC, China exported 3,238.87mt of EPDM in July 2024, down 11.29% Y-O-Y. In July, China’s EPDM exports amounted to 7,082,785 US dollars, with an average export price of $2,186.81/mt, down 4% Y-O-Y. From January to July 2024, China exported a total of 19,737.69mt of EPDM, up 3.01% Y-O-Y.
Overall, as of July, the imported EPDM in China increased significantly. In 2024, South Korea increased its shipments to the Chinese market, while Saudi Arabia’s shipments were affected by unit maintenance, with lower arrivals compared to the same period last year. For August, it is a traditional off-season in China, and domestic traders and downstream customers are less active in purchasing. The expected arrivals in August are lower than those in July, and the arrivals in September are expected to reach a peak. The subsequent arrivals may remain high. The EPDM units at Kumho and Versalis plants in South Korea are relatively stable, and the total shipments to China from South Korea are expected to increase.
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