Aug PBR Imports & Exports Rise While Net Import Volume is Negative
Introduction: In August, China’s PBR imports and exports both moved up, but the import volume was slightly lower than the export volume. This article mainly analyzes the changes in the imports and exports in August and the reasons behind them.
In August, China’s PBR imports edged up, but the net import volume was negative.
According to GACC, China’s PBR import volume was 20,496.05mt, up 6.37% MoM and up 20.70% YoY. From January to August, the total import volume was around 175,829.15mt, up 10.39% YoY. In 2024, the capacity utilization rate of China’s tire capacity hit a 3-year high, resulting in higher demand for PBR. At the same time, China’s PBR price fluctuated upwards bolstered by cost and related products and went above the 3-year high. Against this background, there were some price advantages for PBR resources from Russia and UAE. China’s producers of tire and rubber products preferred to use imported resources to cut feedstock cost. Besides, there have been some fixed long-term customers for some Russian resources. Thus, the import volume of PBR hovered at highs. Besides, China’s supply of high-end PBR was insufficient and needed to be supplemented by imported resources driven by the demand from the production of high-performance tires in China. Thus, the import volume moved up.
As for the import trade partners, the PBR import volumes from Russia, UAE and South Korea ranked top 3 in August. Among them, Russia ranked first. The import volume of PBR from Russia was around 8,172mt, up 67.32% YoY, which accounted for 39.87% of the total. UAE ranked second. That from UAE was around 3,729.6mt, up 131.25% YoY, which accounted for 18.2% of the total. South Korea ranked third. That from was around 2,258.29mt, down 34.81% YoY, which accounted for 11.02% of the total.
The export volume rose slightly.
According to GACC, China’s PBR export volume was 21,404.83mt in August, up 11.55% MoM and up 54.88% YoY. From January to August, the total PBR export volume was around 136,009.22mt, up 37.2% YoY. As seen from the export trade partners, the export volumes to Vietnam, Thailand, and India ranked top 3. The export volume to Vietnam was around 8,185.23mt, accounting for around 38% of the total.
September and October forecast:
Imports: Although the cost of PBR production may remain high in China, the operating rate of the PBR units is expected to ramp up. Besides, the operating rate of the downstream all-steel tire industry is likely to drop. Thus, there may be no new demand for ordinary-grade PBR. As for high-end-grade PBR, the imports are likely to rise limitedly affected by the startup of the new NdBR unit at Zhejiang Transfar Synthetic Materials. Thus, it is projected that China’s PBR import volume may be range-bound or even drop slightly.
Exports: Although China’s spot resources were relatively tight, the demand for PBR in Southeast Asia may be better than that in China. The previous stable contracts of PBR supply are expected to continue to be executed. Thus, the PBR export volume is likely to stay high in September and October.
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