Mar SBR Imports & Exports Increased M-O-M and Y-O-Y
Snapshot: In March 2023, the SBR import volume was 38.9kt, up 54.57% M-O-M and up 4.43% Y-O-Y. The export volume was 16.3kt, up 9.91% M-O-M and up 214.29% Y-O-Y. From January to March, the total SBR import volume was 85.1kt, down 1.11% Y-O-Y, while the export volume was 42.6kt, up 199.64% Y-O-Y.
In March, the SBR import volume moved up M-O-M and Y-O-Y.
According to GACC, in March 2023, the SBR import volume was 38.9kt, up 54.57% M-O-M and up 4.43% Y-O-Y. From January to March, the total SBR import volume was 85.1kt, down 1.11% Y-O-Y. As seen from China’s SBR output and demand, from January to March, China’s SBR output was 264.6kt, down 15.54% Y-O-Y, while China’s semi-steel tire output was 126.2371 million pieces, up 12.45% Y-O-Y. According to SCI, the SBR resources supply from January to March showed a downtrend, while the semi-steel tire output increased notably. With falling supply and rising demand in China, traders had obvious appetites for participating the market in general trade, as the prices of imported resources from some countries were lower than those of China’s resources. There were still some SBR resources imported by processing trade with imported materials
According to GACC, the top 5 trade partners of SBR imports were Russia, South Korea, Singapore, Japan and Thailand. The import volume of SBR from Russia ranked first. The import volume of SBR from Russia in March was 14.9kt, up 142.04% M-O-M and up 532.71% Y-O-Y. The import prices of SBR from Russia, South Korea and Singapore were $1,044/mt, $2,223/mt and $2,164/mt respectively. The price of SBR from Russia has strong advantage. Some players imported SBR resources from Russia and then exported them to other countries. The prices diversified according to different properties of imported resources. As seen from the trade mode in March, the volume of SBR imported by processing trade with imported materials accounted for 33% of the total, ranking first. Those by logistics goods in areas under special customs supervision and general trade both took up around 30% of the total. Processing trade with imported materials tended to choose clients with processing trade manuals, as the import volume of them was stable due to relatively low cost.
In March, the SBR export volume rose M-O-M and Y-O-Y.
According to GACC, the SBR export volume in March 2023 was 16.3kt, up 9.91% M-O-M and up 214.29% Y-O-Y. From January to March 2023, the total SBR export volume was 42.6kt, up 199.64% Y-O-Y. In March, the reasons why China’s SBR export volume moved up were as follows. First, SBR was needed in processing some mixed rubber. Some SBR resources imported from Russia were exported to other countries. Second, considering the current price of SBR, overseas tire enterprises conducted sporadic replenishment on rigid demand, driving up China’s SBR export volume.
Southeast Asia was still China’s major SBR export region.
According to SCI, China’s top five SBR export trade partners were Thailand, Vietnam, Indonesia, South Korea and India, with the total export volume of 12.7kt, which accounted for 79% of China’s total SBR export volume. Thailand ranked first, as some tire enterprises there had some rigid demand for SBR. As seen from the export prices, the mainstream prices lingered at $1,450-1,550/mt.
Overall, some China’s SBR units will possibly take maintenance in April and May, leading to shrinking SBR supply. But the SBR spot is expected to be stable in the market, and the inventory of China’s tire industry may increase. Therefore, the high operating rate may fail to remain. The supply-demand fundamentals will possibly be weak, failing to bolster the SBR price. In terms of import, China’s downstream tire industry may see a decline in the operating rate in May and June, failing to driving up the demand for SBR. However, some SBR units are scheduled to take maintenance in May and June, dragging down the SBR resources. Thus, the SBR import volume is expected to be around 30kt from May to June. Yet, the SBR prices in some countries are possible to be low, so China’s traders may show high interest in import, leading to higher import volume than the normal level. As for the export, there may be some advantages in export arbitrage space for China’s SBR prices. Some downstream industries in Southeast Asia and other regions will possibly have some rigid demand, registering steady willingness in ordering SBR. It is projected that the SBR export market may continue to be at a high level, with an adjustment of around 10kt in the export volume.
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