China IIR Export Volume Rises in November
Preface: in November 2023, China’s IIR export volume saw a notable M-O-M increase. This article mainly analyzes the changes in export data for November and the reasons behind these changes.
IIR Export Volume rose significantly in November
According to data released by the General Administration of Customs of the People’s Republic of China, China’s export volume of regular IIR was 4,689.15mt in November 2023, up 40% M-O-M and 73% Y-O-Y. The export volume of HIIR was 8,073.49mt, up 22.41% M-O-M and 130% Y-O-Y. The steady improvement of foreign tire producers’ demand enticed exports of IIR. As a result, the export volume of IIR achieved growth in November.
Countries in Southeast Asia were still the main trading partners of China’s IIR exports.
The trading partners of China’s regular IIR exports in November 2023 were India, Pakistan, and South Korea. The export volume to India reached 1,334.08mt, marking an M-O-M increase of 105.19% and accounting for 28% of the total export volume. The export volume to Pakistan stood at 1,114.08mt, up 349.15% M-O-M, comprising 24%. The export volume to South Korea amounted to 830.11mt, up 26.45% M-O-M, representing 18%.
In the same month, China’s top three trading partners for HIIR were Thailand, Vietnam, and South Korea. Exports to Thailand were 2,645.06mt, increasing by 70.83% M-O-M and constituting 33% of the total. The export volume to Vietnam was 1,203.95mt, down 43.16% M-O-M, accounting for 15%. The export volume to South Korea was 1,178.42mt, with a significant M-O-M growth of 127.56%, making up 15%.
China’s IIR export data indicated that its main markets were still concentrated in Southeast Asian countries, notably South Korea, Thailand, Vietnam, India, Pakistan and Indonesia. In November, there was a notable increase in the export volume to these trading partners. With rising downstream demand in the Southeast Asian market and relatively tight stock of certain goods, traders intensified their exporting efforts, which somewhat stimulated activity in the export market.
From December 2023 to January 2024, in terms of imports, as inventory at downstream tire producers continues to accumulate, it is anticipated that the operating rate of the tire industry may decline further, nearing an annual low. This is expected to lead to a slowdown in the demand for feedstock. However, influenced by policies and objective market factors, the import volume of IIR may remain high with fluctuations. Regarding exports, downstream industries in regions such as Southeast Asia are expected to have a certain rigid demand, suggesting that there still might be a consistent need for feedstock. Based on these projections, the export market for IIR from December 2023 to January 2024 is likely to maintain its high level of performance.
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