NBR Imports Drop M-O-M in April, While Exports Rise
In April 2024, China’s NBR import volume fell from last month, while the export volume saw an M-O-M uptick. The specific changes in the import and export volume will be analyzed.
Import
According to the data released by the General Administration of Customs of the People’s Republic of China (GACC), the import volume of NBR in April 2024 was 6,633.78mt, which decreased by 0.90% from last month but increased by 47.29% from last year. The total import volume from January to April 2024 was approximately 27,482.41mt, which dropped by 1.08% Y-O-Y. The M-O-M decrease in import volume was mainly due to a reduction in off-shore supplies. Due to the high USD prices of butadiene in April, some suppliers of off-shore cargoes lowered their operating rates under cost pressure. Additionally, several suppliers conducted maintenance shutdowns at the beginning of April, which lowered the supply base and consequently reduced shipments to China’s market.
As for trading partners, the volume of NBR imported from Russia, South Korea and Japan ranked top three. Russia was the largest trading partner, with about 3,221.1mt of NBR imported from the country in April, increasing by 20.21% M-O-M and 113.21% Y-O-Y, accounting for 49% of the total import volume of NBR in April. The second was South Korea, with about 1,397.19mt of NBR imported, down 22.72% M-O-M and 4.37% Y-O-Y, accounting for 21% of total imports. 1,018.02mt of NBR was imported from Japan, which decreased by 14.14% M-O-M but increased by 28.38% Y-O-Y, accounting for 15% of total imports.
Exports
According to data released by GACC, the export volume of NBR in April 2024 was 3,453.1mt, up 74.09% M-O-M and 88.22% Y-O-Y. The total export volume from January to April 2024 was about 10,455.54mt, increasing by 52.96% Y-O-Y. In April, the increase in the export of NBR was mainly driven by entrepot trade. Specifically, the export volume via the mode of logistics goods in areas under special customs supervision surged by 83.52%, accounting for 59% of the total export volume, an increase of 3 percentage points from March. Thereinto, the export volume of NBR to India and Southeast Asia reached 1,728.72mt, which increased by 128% M-O-M.
From May to June, for imports, despite the continuous pressure on production costs faced by overseas suppliers, the caution shown by traders in accepting orders for imported NBR is largely due to the lower prices of Chinese-made goods and lack of confidence in downstream demand. Therefore, it is expected that China’s NBR import volume may not see a significant increase during this period.
As for exports, with some domestic NBR production lines scheduled for maintenance in May and June, China’s domestic supply is expected to be reduced. What’s more, the international market demand for NBR is reportedly not very optimistic, and considering that the export volume in April has already reached a historical peak, further growth seems challenging. Hence, it is anticipated that the export volume of NBR may decline in May and June.
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