Jan-Feb SBS Imports Trend at Highs
Introduction: From January to February, China’s total SBS imports remained high. The main SBS imports came from Russia. In Q1, there were various bearish factors in the SBS fundamentals. SBS prices moved down dragged by various factors.
According to GACC, the SBS imports in January were 5,107.16mt, down 29.92% MoM but up 68.71% YoY. The average import price was $1,872.63/mt, up 2.41% MoM but down 5.88% YoY. The SBS imports from Russia ranked first in January. In February, China’s SBS imports were 9,533.41mt, up 86.67% MoM but down 24.35% YoY. The average import price was $1,491.33/mt, down 20.36% MoM but up 18.85% YoY. The SBS imports from Russia also ranked first in February. In February, it was in the traditional demand slack season in the country of the major SBS supplier, so more SBS resources flowed into China and other Asian markets. Thus, the SBS imports grew notably.
According to GACC, from January to February, the total dry SBS imports from Russia accounted for 80.19% of the total, ranking first. Those from Japan accounted for 8.03%, ranking second. Those from Taiwan, China took up 7.06% of the total, ranking third. As for the oil-extended SBS, the total imports from Russia from January to February accounted for 80.03% of the total, ranking first. Those from Taiwan, China accounted for 8.55%, ranking second. Those from South Korea accounted for 6.95%, ranking third.
From January to February, the total SBS imported from Russia reached around 11,739mt, accounting for 80.18% of the total. Affected by the Spring Festival holiday, the imported SBS resources arrived at ports mainly in late February, aggravating the sales pressure in the market. Dragged by the cost and fundamentals, China’s SBS market prices gradually moved down.
In March and April, the demand in the major origin of China’s SBS imports may fail to recover. Despite expected falls, China’s SBS imports may be still at high levels. Under the influence of cost and fundamentals, China’s SBS market prices are expected to fall continuously. SCI reckons that China’s SBS market prices may edge down without support in the short term.
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