Apr PBR Imports High & Exports Stable
Snapshot: In April, China’s PBR import volume remained high. The major increment was credited to the imports from Russia. The PBR export volume changed slightly. The change in China’s PBR imports and exports and its reasons were analyzed as follows.
In April, China’s PBR import volume remained high.
According to GACC, China’s PBR import volume was 22,160.63mt in April 2023, down 3.14% M-O-M but up 101.91% Y-O-Y. From January to April, the total import volume was around 69,546.44mt, up 24.73% Y-O-Y. From February to April, the operating rate at China’s tire enterprises was high, and several China’s PBR units took maintenance intensively, leading to a tight PBR supply in China. Besides, the price of China’s PBR resources was relatively high. The imported resources had a price advantage, driving up traders’ interest in arbitrage. In addition, players had a bullish expectation for the PBR price in Q2, so they stocked up at low prices in April, which was also one of the reasons for the large amount of imports this month. Thus, the PBR import volume remained high in April. From the perspective of trade partners, the increment in April mainly came from Russia.
As seen from the volume of imported PBR from trade partners, Russia, South Korea and Japan were the top 3 in April. Therein, Russia was way ahead. The import volume of PBR from Russia was around 10,075.86mt, up 50.57% M-O-M and up 1,116.1% Y-O-Y, accounting for 45.47% of the total. South Korea ranked second. The import volume of PBR from South Korea was around 3,256.94mt, down 13.86% Y-O-Y, taking up 14.7% of the total. Japan ranked third. The import volume of PBR from Japan was around 2,774.85mt, up 14.59% Y-O-Y, taking up 12.52% of the total.
As for Russia, China’s import volume of PBR from Russia was 10,075.86mt in April, up 50.57% M-O-M and up 1,116.1% Y-O-Y. On the one hand, the price of the PBR imported from Russia was relatively low. On the other hand, the structure of Russia’s export trade partners changed. According to GACC, the average import price of the PBR from Russia was $1,364.33/mt. Besides, there was some transit trade in the market, driving up the import volume.
The export volume was stable at a high level.
According to GACC, China’s PBR export volume was 14,113.14mt in April 2023, down 0.11% M-O-M but up 10.3% Y-O-Y. The total export volume from January to April was around 55,177mt, up 77.7% Y-O-Y.
In May and June, private PBR enterprises in North China may restart their units in succession, leading to a rise in the PBR supply. Besides, the operating rate of the downstream tire industry is expected to face pressure. Amid the supply-demand balance, the PBR resources may be consumed slowly. In addition, China’s PBR price may show a downtrend in May, constraining the operation of traders. Thus, the PBR import volume in May and June is likely to face headwinds in rising and fall back somewhat. As for the exports, China’s PBR export volume is predicted to remain high in May and June, driven by the expected ample supply of Chinese-made PBR and the recovery in overseas demand.
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