May China PBR Import and Export Analysis
Introduction: In May 2022, China’s PBR import volume showed a slight M-O-M increase, while China’s PBR export volume notched a record high.
China’s PBR import volume slightly rose but was relatively low in May.
GACC’s data showed that in May 2022, China’s PBR import volume was 12.6kt, up 14.75% M-O-M and down 21.28% Y-O-Y. From January to May 2022, China’s PBR import volume totaled 68.4kt, down 17.56% Y-O-Y.
China’s PBR import volume in May increased somewhat from last month but was at a relatively low level. First, China’s demand underperformed. As seen from the major downstream application field – the tire industry, China’s all-steel tire output in May dropped by 5.42% Y-O-Y, and China’s semi-steel tire output dropped by 0.61% Y-O-Y. Tire enterprises’ demand for PBR was limited due to inventory pressure and limited domestic demand. Second, as international butadiene prices rose and RMB depreciated against the U.S. dollar, PBR import prices were significantly higher than the prices of Chinese-made PBR, and traders showed very little interest in operation against the backdrop of no arbitrage space.
China’s major import destinations were inclined to export their resources to Southeast Asia.
Source: South Korean customs
South Korea was China’s largest PBR import trade partner. In May, China’s PBR import volume from South Korea was 4.4kt, taking up 35% of China’s total PBR import volume. South Korean customs’ data showed that from January to May 2022, South Korea’s PBR export volume to China rose by 12.9% Y-O-Y, while that to Indonesia, Vietnam and Thailand rose by 24.4% Y-O-Y. The main reason was that Southeast Asia had better demand for rubber and higher prices than in China. Also for the above reason, China’s PBR export volume in May hit a record high.
China’s PBR export volume continued rising in May.
GACC’s data showed that in May, China’s PBR export volume was 16.2kt, up 26.68% M-O-M and up 95.08% Y-O-Y. From January to May 2022, China’s PBR export volume totaled 47.3kt, up 6.94% Y-O-Y. Among China’s export destinations, the PBR export volume to Vietnam and Thailand took up about 70% of China’s total export volume in May.
The recovery of China’s downstream demand is relatively slow, but the supply of Chinese-made PBR is expected to decrease as some of China’s PBR units are shut down in June without a clear restart date. Thus, China’s PBR import volume is predicted to increase somewhat from June to July. As for PBR exports, given that the supply of Chinese-made PBR will probably drop and the demand has no increment, it is predicted that China’s PBR export volume will decline somewhat but will still be relatively high from June to July.
All information provided by SCI is for reference only, which shall not be reproduced without permission.
Please click "Read more" for the full article.
