Q2, 2019 China EPDM Import Volume Decreased

In Q2, 2019, China’s EPDM import volume decreased M-O-M and Y-O-Y. The anti-dumping investigation was continuing, and market participants were prudent to purchase the resources under investigation. In particular, they held a more prudent attitude towards U.S.-origin resources.

In Q2, 2019, China’s EPDM import volume totaled about 45.1kt, down 11.91% or so Q-O-Q and down about 18% Y-O-Y, mainly due to the tepid demand. As for the downstream automobile industry, from January to June 2019, the automobile production and sales were 12.132 million and 12.323 million, down 13.7% and 12.4% Y-O-Y respectively. The decrease in automobile production was slightly larger than that from January to May, and that in the sales was smaller.

In addition, in H1, 2019, China’s EPDM market prices kept dropping, and the inventory at some domestic market participants was high. Thus, market participants were prudent to purchase the imported resources, and the arrivals decreased in Q2, 2019.

In Q2, 2019, the U.S. was the first largest supplier of EPDM to China, with 39% of the total import volume, up 5% Q-O-Q but down 2% or so Y-O-Y. Imports from South Korea ranked second, occupying 23% of the total, largely unchanged Q-O-Q but down 1% Y-O-Y. Imports from Saudi Arabia took third place, occupying 15% of the total, down 2% Q-O-Q but up 4% Y-O-Y.

In Q2, 2019, the M-O-M and Y-O-Y decrease in China’s EPDM imports was in the range of 13.52%-64.50%. However, the EPDM volume of Saudi Arabia-origin resources increased by about 42.86% Y-O-Y, and that of France-origin resources increased by 50.8% or so M-O-M. Besides, that of U.S.-origin resources rose by about 0.06%. Therein, the unit operation and maintenance in 2018 exerted certain influences on the supply in China.