Jul 2023 China PE Imports to Inch Up M-O-M
According to GACC, China’s total import volume in June 2023 was 1,077.15kt, up 4.08% M-O-M and 5.44% Y-O-Y. The total import volume in the first 6 months of 2023 was 6,324.26kt, down 3.68% Y-O-Y. The import volume in June continued the uptrend M-O-M because the overseas demand remained sluggish, while China’s demand gradually improved in Q3 amid the peak season, attracting more imported resources.
In June 2023, China’s PE imports from major origins showed an overall uptrend, especially from Singapore and a certain country in the Middle East. Meanwhile, imports from the U.S. declined by 28.2kt or 12.53% M-O-M, but the U.S. remained the top 1 import origin with an import volume of 196.8kt. The import volume from Saudi Arabia ranked second, which was 162.7kt, up 1.5kt or 0.93% M-O-M. That from UAE was 141.2kt, up 11.7kt or 9.03% M-O-M. That from a certain country in the Middle East was 120.7kt, up 20.8kt or 20.82% M-O-M. That from South Korea was 77kt, up 3.4kt or 4.62% 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. The import volume via general trade was 911.5kt in June 2023, up 7.26% M-O-M, taking up 85% of the total. That via processing trade with imported materials and stored goods in bonded warehouses was 102.9kt and 48.2kt, taking up 9% and 4% respectively.
In June, the import volume improved M-O-M mainly because the exchange rate of USD gradually declined, giving some relief to the high import costs and improving the import profits. Meanwhile, overseas demand remained weak, while China’s domestic demand recovered slowly, attracting more imported resources. As for the import volume, the increment was mainly from the Middle East, while that from other regions was stable. However, the increment was limited due to the low PE price in China’s domestic market. Therefore, SCI reckons that the import volume in July will inch up from June to around 1,094.56kt.
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