Aug China PP Imports Climb amid RMB Appreciation and Stable Standing Need
Highlights: 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 August 2024.
1. China PP Import Volume Trend
China’s PP import volume was 205.2kt in August, up 1.09% MOM but down 4.99% YOY. The import arbitrage window remained closed in August, but the appreciation of RMB value against USD left certain arbitrage opportunities. However, China’s PP USD price stood at a global low, attracting overseas sellers limitedly. Downstream enterprises faced a high finished product inventory level amid sluggish sales, so they represented soft appetite in buying and maintained basic purchases. In summary, the growth in PP import volume was limited in August.
2. Aug 2024 China PP Import Data by Origin
In terms of import origins, the top ten trading partners in import trade volume have changed to some extent, and Belgium has entered the top ten. Judging from the specific changes, the import volume from most trading partners changed limitedly. China’s PP imports from South Korea were 43.7kt, ranking first and up 2.9kt MOM. Imports from the U.A.E. grew a lot by 7.6kt and ranked second because more resources from overseas suppliers such as Borouge arrived at ports. Saudi Arabia-origin PP resources decreased because it preferred to sell goods to other countries instead of China for bettered margins. PP imports from Belgium grew as the change in RMB value against USD brought certain arbitrage opportunities.
3. Aug 2024 China PP Import Data by Trade Mode
China’s PP import volume via general trade mode was about 137.3kt and occupied 67% of the total in August, ranking first. The import volume via processing trade with imported materials was about 39.2kt, taking up 19% and ranking second. Thus, imports via general trade mode and processing trade mode with imported materials occupied above 80% of the total. Besides, the import volume based on the processing trade mode with provided materials was around 28.3kt, occupying 12% and ranking second. The import volume based on the mode of stored and transit goods in bonded warehouses took fourth place.
4. Aug 2024 China PP Import Data by Import Cost
The overall import cost edged up in August 2024 and mainly hovered around $800-1,200/mt. Therein, import volume with import costs of $800/mt ranked first, and major origins were Japan, Malaysia and Kazakhstan. The import volume with cost of $900-1,000/mt rose to the second place, and major origins were 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 Saudi Arabia. Imports with costs of $1,000-1,100/mt ranked fourth, and main origins were Singapore, U.A.E. and Saudi Arabia. Generally, the fluctuation range of import costs changed narrowly, and import costs for specific-purpose materials stayed relatively high.
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