Feb SBR Imports & Exports Rose M-O-M and Y-O-Y
Snapshot: In February 2023, the SBR import volume was 25.1kt, up 19.01% M-O-M and up 31.27% Y-O-Y. The SBR export volume was 14.8kt, up 28.15% M-O-M and up 329.79% Y-O-Y. The total SBR import volume in January and February was 46.3kt, down 5.32% Y-O-Y. The total SBR export volume in January and February was 26.4kt, up 191.26% Y-O-Y.
In February, the SBR import volume increased M-O-M and Y-O-Y.
According to GACC, the SBR import volume was 25.1kt in February 2023, up 19.01% M-O-M and up 31.27% Y-O-Y. From January to February 2023, the total SBR import volume was 46.3kt, down 5.32% Y-O-Y. China’s total SBR output in January and February 2023 was 207kt, down 13% Y-O-Y. As for the demand, China’s total semi-steel tire output was 74.1351 million pieces in January and February, up 12.93% Y-O-Y. According to SCI’s data, the SBR resources supply in January and February showed a downtrend, while the semi-steel tire output increased notably Y-O-Y. The SBR supply declined, but the demand increased in China. Besides, the SBR import prices in some countries were lower than those in China. Thus, traders showed strong interest in operating in general trade for arbitrage. There were still some SBR resources imported by processing trade with imported materials
In February, the SBR import volume rose M-O-M and Y-O-Y. The main drivers will be analyzed as follows.
According to GACC, China’s top 5 SBR import trading partners were South Korea, Russia, Germany, Singapore, and Thailand in February. South Korea ranked first. The import volume of SBR from South Korea was 7.9kt in February, up 26.83% M-O-M and up 32% Y-O-Y. The import prices of SBR resources from Korea, Russia and Germany were $1,997/mt, $1,075/mt and $3,024/mt respectively. Obviously, the SBR resources from Russia have strong price advantages, so some players imported SBR resources from Russia and then exported to other countries. As seen from the trade modes in February, the import volume of processing trade with imported materials took up 43% of the total, ranking first. The import volume of general trade accounted for 30%, ranking second. That of logistics goods in areas under special customs supervision accounted for around 22%. Processing trade with imported materials tended to choose clients with processing trade manuals, as the import volume of them was more stable due to relatively low cost.
In February, the SBR export volume rose M-O-M and Y-O-Y.
According to GACC, the SBR export volume in February 2023 was 14.8kt, up 28.15% M-O-M and up 329.79% Y-O-Y. From January to February 2023, the total SBR export volume was 26.4kt, up 191.26% Y-O-Y. In February, 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 trading partners were Thailand, Vietnam, Indonesia, Cambodia and Taiwan, China, with the total export volume of 12.5kt, which accounted for 85% 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, China’s SBR units will possibly run normally in March and April, leading to relatively ample SBR supply. Besides, the operating rate of China’s tire industry may stay high. As the tire industry is likely to show good performance, the tire product inventory may be at a low level. Despite the good supply-demand fundamentals, other related factors of SBR are predicted to strongly drag down the SBR price. In terms of import, China’s downstream tire industry may see relatively high operating rate, with some rigid demand for SBR in March and April. Besides, some SBR units are scheduled to take maintenance in May and June. Thus, the SBR import volume is expected to be around 25kt from March to April. 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 will possibly have some rigid demand, registering steady willingness to order SBR. It is projected that the SBR export market may continue to be at a high level, with the export volume of around 10kt.
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