Jul SBR Imports & Exports Trended Up M-O-M and Y-O-Y
Snapshot: In July 2023, China’s SBR import volume was 28.8kt, up 3.32% M-O-M and up 12.62% Y-O-Y. The export volume was 12.5kt, up 8.4% M-O-M and up 22.94% Y-O-Y. From January to July, the total SBR import volume was 212.4kt, up 9.3% Y-O-Y, while the total export volume was 95.5kt, up 64.53% Y-O-Y.
In July, the SBR imports rose M-O-M and Y-O-Y.
According to GACC, the SBR import volume was 28.8kt in July 2023, up 3.32% M-O-M and up 12.62% Y-O-Y. From January to July 2023, the SBR import volume was 212.4kt, up 9.3% Y-O-Y. As seen from China’s SBR output and demand volume, from January to July, China’s SBR output was 726.8kt, down 4.13% Y-O-Y, while China’s semi-steel tire output was 332.0137 million pieces, up 18.89% Y-O-Y. According to SCI, the SBR resources supply from January to July showed a downtrend, while the semi-steel tire output increased notably Y-O-Y. With falling supply and rising demand in China, traders had appetites for participating in market by general trade, as the prices of resources imported from some countries were lower than those of China’s resources. There were still some SBR resources imported by processing trade with imported materials
According to GACC, China’s top 5 trade partners of SBR imports in July were Russia, South Korea, Germany, Singapore and Thailand. The import volume of SBR from Russia ranked first. The import volume of SBR from Russia in July was 8.3kt, up 21.73% M-O-M and up 40.53% Y-O-Y. The import prices of SBR from Russia, South Korea and Germany were $1,191/mt, $2,033/mt and $2,178/mt respectively. Apparently, the SBR imported from Russia had a strong price advantage. Some players imported SBR resources from Russia and then exported them to other countries and regions. The prices diverged according to different properties of imported resources. As seen from the trade mode in July, the volume of SBR imported by general trade accounted for 36% of the total. Those by processing trade with imported materials took up around 33%. Processing trade with imported materials tended to choose clients with processing trade manuals, as the import volume of them was stable due to relatively low cost.
In July, the SBR export volume ramped up Y-O-Y and M-O-M.
According to GACC, the SBR export volume in July 2023 was 12.5kt, up 8.4% M-O-M and up 22.94% Y-O-Y. From January to July 2023, the total SBR export volume was 95.5kt, up 64.53% Y-O-Y. In July, the reasons why China’s SBR export volume increased M-O-M were as follows. First, some SBR resources imported from Russia were re-exported to other countries and regions, as processing some mixed rubber needed SBR. Second, overseas tire enterprises replenished SBR on rigid demand, driving up China’s SBR export volume.
Southeast Asia was still the major export destination.
According to GACC, China’s top five SBR export trade partners in July were Vietnam, Thailand, Cambodia, Indonesia and South Korea with the total export volume of 10kt, which accounted for 80% of China’s total SBR export volume. Vietnam ranked first, as some tire enterprises there had some rigid demand for SBR. As seen from the export prices, the mainstream prices lingered at $1,450-1,600/mt.
Overall, China’s SBR units under maintenance are scheduled to be restarted in succession in August and September, leading to an expected rise in the SBR supply. But the SBR supply may not be too ample. Besides, the operating rate of China’s tire industry will possibly remain high. Thus, the supply-demand fundamentals are likely to fail to drive up the SBR market.
Imports: China’s downstream tire industry may maintain normal operating rate in August and September. Yet, tire enterprises are expected to purchase SBR on rigid demand. Dealings in the market may hardly improve. Besides, the SBR supply is likely to increase as the operating rate of the SBR industry ramps up. Thus, the SBR import volume is expected to be around 25-30kt from August to September.
Exports: The price of China’s SBR still has some advantages for export arbitrage. Some downstream industries in Southeast Asia will possibly have some rigid demand and show stable appetites for ordering SBR. It is projected that the SBR exports are likely to remain high in August and September, lingering at 12kt to 15kt.
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