China's PSF imports from Southeast Asia and Africa in Jan-Feb, 2021

According to the China customs, in Jan 2021, China's uncombed polyester staple fiber exports were 84,400 tons and imports were 18,600 tons. In Feb, the exports were 74,300 tons, down 12% month on month, and imports were 12,100 tons, down 35% month on month. The exports in the first two month of 2021 increased by 11% from 2019 and 46% from 2020, and imports during the same period rose by 12% from 2019 and 23% from 2020.

Exports increased sharply in the second half of 2020, as China played a supplier after the spread of COVID-19 pandemic, and currently, the gap still exists, so the exports rose compared with 2019.　In late Mar after the Chinese Lunar New Year, plants in Hangzhou began to take export orders, mainly at 7,300yuan/mt. For the product in Guangdong, buyers mainly stood on the sidelines due to high prices, and discussion is still undergoing currently.

HS code 55032000 is synthetic staple fibers, of polyesters, not carded, including virgin PSF and recycled PSF. And the imports from Southeast Asia and African are mainly the recycled PSF.　The following are the changes in recent years.

In the import origins of PSF, Myanmar appeared in 2017, and the overall imports were not much.　In 2019, one HC re-PSF production line in Hangzhou was moved to Myanmar, and has not started production till now. In 2020, the imports from Myanmar reduced sharply, and in 2021, plants were hard to go operation affected by the coup.

Vietnam started to exert force in 2018. Following the solid waste ban, domestic plants moved to foreign countries gradually. Vietnam has gathered solid re-PSF and a few HC virgin PSF plants. Imports in 2018 soared to 13,113 tons and reached 19,196 tons in 2019. In 2020, imports climbed up to 19,955 tons. In Jan-Feb, 2021, imports reached 7,705 tons.

The imports from Thailand has tripled in 2019 compared to 2016, to 45,000 tons. The local re-PSF capacity is about 250kta in 2020, and the competition focuses on HC re-PSF. In Jan 2021, Jiulongthai Phase II has started up, with HC re-PSF capacity of 100 tons per day, totaling 200 tons per day. In 2020, imports totaled 42,127 tons, and in Jan-Feb, 2021, imports were 4,967 tons.

Small quantity of PSF was imported from Cambodia in 2021.

Imports from Southeast Asia were 23,749 tons in 2016, 29,228 tons in 2017, 43,374 tons in 2018, 98,390 tons in 2019, 78,779 tons in 2020, and 15,187 tons in Jan-Feb, 2021. Imports may be higher than 2020 this year, but below the level of 2019.

The African market has also gradually risen in recent years, especially in 2018-2019, some domestic production lines have been transferred to Africa. Therefore, the exports to China has increased rapidly since 2019. Imports in 2020 have increased by 28%, mainly from South Africa and Nigeria. The table below shows imports from Africa.　　　　　　　　　

In 2021, with the new capacities of HC virgin PSF and HC re-PSF, and the oversupplied PET flakes, domestic supply is sufficient, which may put pressure on imports of HC virgin PSF and HC re-PSF.