China's PSF imports from Southeast Asia and Africa in Jan-Jun, 2022

In Jun, 2022, PSF exports of China were 90,300 tons, up 26.2% year on year and up 0.1% month on month, and imports were 7,700 tons, down 39.9% year on year, but up 18% month on month. In the first half year of 2022, PSF exports totaled 487.5kt, down 0.25% year on year, and imports were 45.2kt, down 49.3%. This year, China's export shares were squeezed by the overseas market, and Chinese local demand was also inadequate.

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 Jan-Jun, 2022, imports from Southeast Asia hit a new low in recent three years, especially the imports from Vietnam, have declined significantly.

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, imports declined sharply. In 2021, operation was unstable affected by the epidemic and Feb 1 coup, and the products mainly sold to Europe and the United States. Imports were only 378 tons in 2021. In 2022, no imports were seen by now.

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 30,567 tons in 2021. It was mainly attributed to the demand recovery, larger price spread between virgin PSF and recycled PSF and the speculative demand around the Lunar New Year.  In 2020, a few new plants engaged solid re-PSF put into operation, with a capacity of 50 tons per day, and the products are mainly delivered to China, so the monthly imports from Vietnam are higher year on year. In Sep 2021, imports were 729 tons, and in Oct, imports were only 459 tons, the lowest in recent two years. It was mainly because that Vietnam started the most strict lock-down measures with the outbreak of pandemic in May, 2021. Later, with the epidemic control and relaxation of power rationing, imports climbed up largely to nearly 2,000 tons in Nov-Dec, 2021. In addition, affected by surging sea freight, China-origin cheap fibers were hard to sell to Vietnam, and HC re-PSF sales were smooth in Vietnam.

From Jan, 2022, imports from Vietnam reduced largely, lower than the same period of previous years every month. In the first half year of 2022, imports totaled 5,797 tons, a fall of 71.7% from the same period of last year.

The imports from Thailand has tripled in 2019 compared to 2016, to 45,000 tons. In 2020, imports were 42,127 tons, and in 2021, imports totaled 31,996 tons. The imports put certain impact on Guangdong market. In Jan-Jun, 2022, imports were 10,545 tons. There were still new capacities, including HC re-PSF, hollow PSF and colored yarn. A few plants plan to start up this year.

In 2021, the imports from Cambodia were 1,261 tons. In Jan-Jun, 2022, imports were 542 tons.

Imports from Southeast Asia were 98,390 tons in 2019, 78,779 tons in 2020, 76,245 tons in 2021 and 21,170 tons in Jan-Jun, 2022.

The African market has gradually risen in recent years, especially in 2018-2019, some domestic production lines have also been transferred to Africa. Therefore, the exports to China has increased rapidly from 2019. Imports in 2020 have grown by 28%, mainly from South Africa and Nigeria, but in 2021 imports from South Africa shrank sharply affected by the riots, which caused disruptions of plant operation. Imports from Nigeria in Mar 2021 were good, reaching 2,728 tons. But the imports from Africa were zero in the fourth quarter of 2021. In 2022, there were only imports from Uganda of 455 tons. Exports to China are supposed to be limited this year, mostly to Europe. Recycled PSF capacities continue to expand in Africa benefited from the edge in sea freight to Europe and no high tax. Exports to China may be limited this year.

Recycled chemical fiber plants continue to expand capacities overseas this year, and overseas trade may increase, squeezing the export shares of China. Pay attention to the overseas plant operation and sea freight.