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

According to the China customs, in Apr 2021, China's uncombed polyester staple fiber exports were 81,200 tons, down 23% month on month and up 100% year on year, and imports were 13,500 tons, down 34% month on month and 35% year on year. Compared with the same period in 2019, imports reduced by 41%.

Some plants continued to deliver export products in April, while new orders were ordinary. Exports and delivery were blocked impacted by difficulty in booking ships, high sea freights and Chinese yuan revaluation. In Guangdong, affected by the electricity restriction, plants operated frequently, and a few plants also saw the problems in delivery.

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 the first quarter of 2021, imports have exceeded 10,000 tons, and imports from January to April were 15,451 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 were 42,127 tons, and in the first four months of 2021, imports totaled 11,950 tons.

In January-February, 2021, imports from Cambodia were seen a small volume, while the imports were zero in March. In the first four months of 2021, imports totaled 987 tons.

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 33,772 tons in January-April, 2021. The imports may be higher than last year in 2021.

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. Imports from South Africa shrank obviously. Imports from Nigeria in Mar this year were good, reaching 2,728 tons. 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. In short, HC re-PSF prices still have downward space, which puts pressure on imported HC re-PSF. In addition, the epidemic in Southeast Asia is severe recently, and no orders are heard to flow back to China. Eyes will be kept on this continually.