Jul China SBS Imports Drop on Slow Recovery in Domestic Demand
Snapshot: In July, China’s SBS import volume continued to decrease M-O-M. The main import origin was Russia. The demand in China recovered slowly, and scarce imported SBS resources from major trade partners arrived at ports. Overall, China’s import volume has been decreasing for 5 consecutive months.
According to GACC, in July 2024, China’s SBS import volume dropped by 15.95% M-O-M or 2.35% Y-O-Y to 3,637.76mt. The monthly average import price was $1,761.62/mt, down 2.83% M-O-M or down 19.03% Y-O-Y. The volume of SBS resources imported from Russia ranked first in July. In 2024, China’s import volume from January to July was 41,997.57mt, down 17.42% Y-O-Y. In July, the demand in China revived limitedly, and scarce SBS resources of major suppliers arrived at ports. In general, China’s import volume in July decreased M-O-M.
According to GACC, the import volume from Russia accounted for 52.57% or so of China’s total dry SBS import volume in July, ranking first. The second one was that from Japan, accounting for 17.58% or so. The third one was that from Taiwan, China, accounting for 16.38% or so. As seen from oil-extended SBS import volume, in July 2024, that from Russia accounted for 75.86% or so of the total volume, ranking first. That from Taiwan, China accounted for 13.34% or so, ranking second. That from Hongkong accounted 7.81% or so, ranking third.
From January to July, the import volume of SBS from Russia reached about 31,100mt, accounting for 74% of the total. Among them, the volume imported from Russia in July was 2,047.7mt, accounting for 56.29% of the total. The import resources have been scarce for five consecutive months. The scarce SBS resources from Russia accounted for a small proportion of China’s SBS supply, so the impact on China’s SBS market weakened. The main driving factor of market price was the cost side, and the influence of supply and demand on SBS price weakened.
August China import volume outlook and the impact on China SBS market: According to GACC, in August, China’ SBS import volume is expected to recover, but it may be still at a low level. Thus, it may have limited impact on the supply and demand pattern of China’s SBS market. However, the monthly import volume is expected to rise as the trade flow of the major trade partner is expected to change. In addition, since August, the overall operating rate of SBS industry in China has climbed, which may impact the supply and demand pattern of China’ SBS market in Q4, 2024. The supply side may be under pressure.
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