Navigate Oct 2022 China SBR Import and Export
Introduction: In October 2022, China’s SBR import volume was 22.4kt, up 2.27% M-O-M and up 1.07% Y-O-Y. China’s SBR export volume was 8.6kt, up 14.91% M-O-M and up 73.67% Y-O-Y. The total import volume was 259.5kt from January to October, down 15.74% Y-O-Y, and the export volume totaled 87kt, up 61.63% Y-O-Y.
GACC’s data showed that China’s SBR import volume was 22.4kt in October, up 2.27% M-O-M and up 1.07% Y-O-Y. From January to October 2022, China’s SBR import volume totaled 259.5kt, down 15.74% Y-O-Y. In terms of China’s SBR output and demand volume, the output was 1,046.3kt from January to October 2022, up 6.15% Y-O-Y. As for demand, China’s semi-steel tire output totaled 402.6575 million pieces from January to October, down 0.2% Y-O-Y. According to SCI’s supply and demand data, from January to October, the SBR supply ramped up, while the semi-steel tire output edged down. Against the backdrop of weak supply and demand in China, as well as the higher import price than that of Chinese-made SBR, the import via the general trade was inactive, and there was a certain amount of import via processing trade with imported materials.
GACC’s data showed that China’s top five import origins in October were South Korea, Russia, Thailand, Germany and Singapore. Therein, China’s SBR import volume from South Korea ranked first and was 6.9kt in October, up 1.47% M-O-M and up 8.29% Y-O-Y. The import price from South Korea, Russia and Thailand were $2,089/mt, $1,125/mt and $2,476/mt respectively. Russia had a stronger price advantage, and some players imported SBR from Russia and then exported it. As for China’s SBR imports by trade mode in October, the import volume via processing trade with imported materials was the largest, taking up 40.18% of the total. The import volume via general trade ranked second, taking up 34.42% of the total. That via logistics goods in areas under special customs supervision took up 22.5% of the total. The mode of processing trade with imported materials inclined towards customers with manuals, and owing to low import costs, their import volume had certain stability.
GACC’s data showed that China’s SBR export volume was 8.6kt in October, up 14.91% M-O-M and up 73.67% Y-O-Y. From January to October 2022, China’s SBR export volume totaled 87kt, up 61.63% Y-O-Y. China’s SBR export volume increased in October. First, Chinese-made SBR had price advantages. Second, considering the current low SBR price basis in China, a few players stocked up in a small volume to export to overseas tire plants.
China’s top 5 SBR export destinations in October were Thailand, Vietnam, Indonesia, India and Malaysia, with a total export volume of 6.8kt, taking up 79 % of China’s total SBR export volume. Therein, the export volume to Thailand was the largest, mainly as some tire and shoe material enterprises had rigid demand for SBR. In terms of the export price, mainstream export prices were $ 1,580-1,750/mt.
China’s SBR units are partly shut down for maintenance from November to December, but the overall supply is supposed to be relatively stable. With the weather getting colder, China’s tire industry will probably underperform. Tire enterprises are projected to witness inventory accumulation, weighing on the operating rate. Consequently, demand for SBR is predicted to hardly improve. It is estimated that China’s SBR prices will hardly rise to highs in December.
China’s SBR import volume is predicted to remain at 21-23kt in November and December. However, the import volume is likely to go higher than the normal level as China’s players will probably have high operation motivation due to the low prices of SBR in some countries.
China’s export market is likely to slide in November and December, and the export volume is estimated at 7kt. China still has the export arbitrage advantage. Yet, the demand from Southeast Asia is predicted to underperform.
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