China SBS Export Volume Rose in May
Introduction: In May 2022, China’s SBS export volume showed a significant M-O-M increase. China’s SBS export volume was 8,751mt in May, up 83.16% M-O-M and up 164.06% Y-O-Y. The total export volume from January to May 2022 rose by 128.47% Y-O-Y. The European market sustained its strong demand for Asia-origin SBS resources, and the wider arbitrage space of Asia-origin SBS resources was the main reason for the great increase in export volume.
In May 2022, China’s SBS export volume showed a great M-O-M increase. China’s SBS export volume was 8,751mt in May, up 83.16% M-O-M and up 164.06% Y-O-Y. The total export volume from January to May 2022 rose by 128.47% Y-O-Y.
Reasons for the continuous increase in China’s SBS export volume: First, overseas demand remained strong. The prices of Asia-origin SBS resources were lower, and China’s SBS export arbitrage window opened. Second, China’s demand for SBS was tepid, and thus, China’s major producers and export merchants maintained and explored the overseas market to ease sales pressure at home.
In the first half of 2022, China’s SBS monthly export volume was high, and especially, in May, a significant rise in SBS export volume eased the domestic sales pressure on major producers. It was learned that China’s SBS monthly export volume still improved in June. The spot resources of mainstream dry SBS grades were insufficient in South China, and more China’s resources were exported to the overseas market for arbitrage.
China SBS export forecast
China’s SBS export volume is predicted to remain in an uptrend in June owing to the export arbitrage window, and this will probably ease the domestic sales pressure on major producers in East China. After mid-June, China’s downstream industry will usher in the slack season, and the demand side is predicted to hardly facilitate China’s SBS market. The export increase alleviates competition in China’s domestic market, and China’s weak supply and demand will probably slow down the decrease in China’s SBS prices. China’s SBS monthly export volume is predicted to dwindle somewhat in July due to the continuously high export volume from May to June and the smaller price spread between China-origin resources and Europe-origin ones. More resources are predicted to be supplied to the Chinese market, aggravating China’s competition.
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