China PP Imports Inch Up with Narrow Arbitrage Economics in Nov 2023
Preface: SCI Plastic leads you into polypropylene (PP) import data by origin, trade mode and import cost, to clearly present China’s PP import market change in November 2023.
1. China PP Import Volume Trend
In November, the import volume of PP in primary forms (HS: 39021000) was 227.39kt in China, up 5.50% or 12kt M-O-M but down 15.97% Y-O-Y. The growth was limited. Besides, the import volume of PP totaled 2,460.7kt from January to November 2023, down 6.93% Y-O-Y. The PP USD prices dropped but then stabilized, but low prices in China dented the number of quotations from overseas suppliers. But some suppliers uplifted the number of quotations slightly to ease their inventory pressure.
2. Nov 2023 China PP Import Data by Origin
China’s PP import volume rose by around 11.9kt M-O-M in November 2023. The top ten import origins changed limitedly. In terms of PP import origin, South Korea still ranked first with 44.4kt of PP exports to China, and this volume rose by 2.8kt M-O-M. China’s PP import volume from the U.A.E. was 36.6kt, ranking second and staying flat M-O-M. That from Japan was 24kt and ranked third. That from Singapore grew by 4.4kt and ranked fourth. Besides, that from Kazakhstan and Taiwan of China ranked fifth and sixth respectively. China’s PP import volume from Saudi Arabia declined by 10.2kt, with the rank sliding from three to seven. Some producers there reduced production or curtailed operating rates because of sluggish demand and high-cost pressure, and they preferred to sell goods to other regions instead of China to realize more profits. Thus, PP import volume from Saudi Arabia dropped in China. Malaysia, Thailand and Russia came only after Saudi Arabia.
3. Nov 2023 China PP Import Data by Trade Mode
In November, China’s PP import volume via general trade mode was about 150.2kt and took up 66% of the total, ranking first and up 1 percentage point M-O-M. The import volume via processing trade with imported materials was about 39.5kt, ranking second. That occupied 18% of total imports, down 2 percentage points M-O-M. Besides, the import volume of logistics goods in areas under special customs supervision was about 34.6kt and occupied around 15% of the total, which rose by 1 percentage point M-O-M. The import volume based on the mode of processing trade with provided materials stayed flat M-O-M. In summary, general trade was still the prominent trade mode, and PP import volume through this trade mode ramped up in November, while that through other modes changed limitedly.
4. Nov 2023 China PP Import Data by Import Cost
The overall import cost remained largely immobile in November 2023 and mainly hovered around $800-1,200/mt. Therein, imports with import costs of $800/mt ranked first, and major origins were Japan, Kazakhstan and Malaysia. Imports with costs of $900-1,000/mt ranked second, and origins were mainly the U.A.E., Thailand and Saudi Arabia. Imports with costs of $1,100-1,200/mt took the third place, and origins were mainly South Korea, Taiwan of China and Singapore. Imports with costs of $1,000-1,100/mt ranked fourth, and main origins were Singapore, U.A.E. and Thailand. Generally, China’s PP prices stood at a low, hardly improving the PP import cost. The insipid demand in China also hindered the overseas suppliers’ interest in selling goods to China. PP import volume rose slightly, but the import cost and origins changed narrowly. Imports were mainly off-shore cargoes.
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