Jan-Feb China PE Import Volume Decreased Y-O-Y
China’s total PE import volume was 1,135.1kt in January, up 4.37% M-O-M, but down 23.17% Y-O-Y. The import volume was 1,082.8kt in February, down 4.61% M-O-M and down 0.25% Y-O-Y. The total import volume from January to February was 2,217.9kt, down 13.46% Y-O-Y.
Chart 1 2021-2022 China PE Monthly Import Volume
The total import volume from January to February was 2,217.9kt, down 13.46% Y-O-Y. Compared with December, the import volume in January and February was basically stable. It is predicted that the import volume will remain low in March, which is estimated at 1,100-1,150kt. It was mainly because the January-February shipments were still in tight availability. Low-priced resources reduced, while the sales of high-priced resources were not smooth. The trading volume seemed hard to improve significantly.
Chart 2 Jan- Feb 2022 China PE Import Origins
As for main origins, the import volume from the Middle Eastern country and U.A.E saw notable increases, while that from Saudi Arabia, South Korea and the U.S. dropped. That from other countries changed limitedly. The import volume from Saudi Arabia was the highest, and that in February was 224.8kt, down 10.47% M-O-M, owing to the low price in China’s domestic market and the Spring Festival holiday. The arrivals of imported resources from the Middle Eastern country were intensive in February, and the import volume was 170kt, up 7.39% M-O-M. The import volume from the U.A.E was 160.7kt, up 21.6kt or 15.53% M-O-M.
As for January import data via trade mode, import volume via general trade was 946.7kt, accounting for 83% of the total. The import volume via processing trade with imported materials was 108.9kt, accounting for 10% of the total. The import volume via stored and transit goods in bonded warehouses was 52.7%, taking up 5% of the total. As for February import data via trade mode, import volume via general trade was 884.1kt, accounting for 82% of the total. The import volume via processing trade with imported materials and stored and transit goods in bonded warehouses was 103.4kt and 75kt respectively, taking up 9% and 7% of the total respectively.
As the high crude oil price exerted great pressure, some producers in Northeast Asia and Southeast Asia lowered the operating rate, which gave some support to the PE prices. China’s domestic price were low, so many resources tended to flow to other places where the prices were higher. China’s overall import volume of PE was still on the low end. As for demand, China’s domestic demand was flat, and there was no improvement in new orders. In addition, the logistics was not smooth, dampening the buying sentiment. It is predicted that the import volume will remain low in March, which is estimated at 1,100-1,150kt.
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