May 2023 China PE Import Improved M-O-M & Y-O-Y
According to GACC, China’s total import volume in May 2023 was 1,034.95kt, up 8.15% M-O-M and 4.07% Y-O-Y. The total import volume in the first 5 months of 2023 was 5,247.1kt, down 5.36% Y-O-Y. The import volume in May improved notably M-O-M because the overseas demand weakened, while China’s rigid demand was still seen, attracting more imported resources.
In May 2023, China’s PE imports from major origins showed an overall uptrend, especially from the U.S. and some countries in the Middle East. Meanwhile, imports from South Korea and Canada declined. The PE imports from the U.S. ranked first and reached 225kt in May 2023, up 25.2kt or 12.61% M-O-M. Those from Saudi Arabia were 161.2kt, up 1.1kt or 0.69% M-O-M. Those from UAE were 129.5kt, up 5.6kt or 4.52% M-O-M. Those from a certain country in the Middle East were 99.9kt, up 12.2kt or 13.91% M-O-M. Those from Canada were 31.7kt, down 2.5kt or 7.31% M-O-M.
As for the trade mode, China mainly imported PE via general trade, processing trade with imported materials and stored goods in bonded warehouses. Therein, the import volume via general trade was 849.8kt in May 2023, up 8.82% M-O-M, taking up 82% of the total. That via processing trade with imported materials and stored goods in bonded warehouses was 97.6kt and 70.9kt, taking up 9% and 7% respectively.
In May, the import volume improved M-O-M mainly because the demand in Southeast Asia declined, and improving replenishment demand was seen on falling prices in China’s domestic prices. As for the demand, with the slack season coming to an end in May, the demand for some high-end film and PO film started to recover in June. Meanwhile, the demand for packaging materials was fueled by the shopping carnival on June 18. In addition, with the rainy season coming, the demand for water-proofing plastic products increased, improving the market purchases and attracting more imported resources. As for the import volume, U.S.-origin resources arrived at ports continuously, and imports from other regions remained stable. However, affected by the continuous depreciation of RMB, the rising import costs may curb the increment in the import volume. Therefore, SCI reckons that the import volume in June will inch up from May to around 1,050kt.
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