July Petroleum Resin Export Declined by 13% M-O-M
China is one of the major producers and exporters of petroleum resin in the world. In recent years, the number of newly built and expanded petroleum resin units is large, and most of them have achieved steady production. Therefore, the export volume of petroleum resin gained notably in 2022, and will continue to stay high in the later stage.
In July 2022, the export of petroleum resin was large, which was at a historical high since 2009. According to the data published by the General Administration of Customs of China, China exported 29,043.85mt of petroleum resin in July, 2022, down 13.29% M-O-M and up 23.39% Y-O-Y. From the historical data, the Y-O-Y increase of export volume in July does not conform to the historical characteristics (except for the special market in 2020). Since 2021, the monthly export volume of China's petroleum resin has shown a Y-O-Y upward trend, which is mainly due to growing newly added and expanded petroleum resin units in China, as well as the increase in foreign demand.
The proportion of export to Asia dropped by 19.80% M-O-M. In July, China exported a total of 16.205kt of petroleum resin to the Asian market, down 19.80% M-O-M but up 27.72% Y-O-Y. As most of the newly added units were in stable operation in recent years, the export of petroleum resin showed a rising trend Y-O-Y. However, on an M-O-M comparison, the export declined in July. On the one hand, China’s supply slid as many sets of units were shut down. On the other hand, the demand from our major partners, such as India and the U.S. weakened due to slower-than-expected economy growth.
It is expected that the export volume of petroleum resin in August will continue to be at a relatively high level in the same period in recent years. The main reasons are as follows: first, the supply of petroleum resin posted an increase, as the newly added units operated stably, and some units raised operating rates, which was conducive to export. Second, the demand in India and the United States resumed. Therefore, considering comprehensively, it is expected that the export of petroleum resin in August will remain at a high level in the same period in history.
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