China's PSF imports from Southeast Asia and Africa in H1, 2021

According to the China customs, in June 2021, China's uncombed polyester staple fiber exports were 71,600 tons, down 1% month on month and up 47% year on year, and imports were 12,800 tons, up 9% month on month and down 27% year on year. Compared with the same period in 2019, exports declined by 16% and imports reduced by 2%.

In the first half year of 2021, the exports amounted to 489kt, up 46.3% year on year, and imports totaled 89kt, down 9.3% year on year. Compared with the same period in 2019, exports declined by 1.2% and imports reduced by 10.8%.

Currently, exports remained difficult. A few plants have not finished the March orders, and the delivery may finish gradually in end August. Sea freight remained high, and plants with smaller volumes were hard to book the shipments.

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 reduced largely, and in the first half year of 2021, imports were 378 tons.

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. Imports have exceeded over 10,000 tons in the first quarter of 2021, and reached 20,508 tons in the first half year, which has surpassed the overall imports of 2020. In terms of the monthly data of Vietnam, the imports have been high since October 2020. Previously, the monthly imports were 1,000-2,000 tons, but since October, 2020, the imports maintained above 2,000 tons, even 4,600-4,800yuan/mt in January and March, 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.

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 January 2021, Jiulongthai Phase II unit started up, with a HC re-PSF capacity of 100 tons per day. The products mainly export to Europe and the United States. In 2020, imports were 42,127 tons, and in the first six months of 2021, imports totaled 15,489 tons.

In January-February, 2021, imports from Cambodia were seen a small volume, while the imports were zero in March. In the first six months of 2021, imports totaled 1,174 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 44,243 tons in Jan-Jun, 2021.

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 were normal. In March 2021, imports reached 2,728 tons. The table below shows imports from Africa.

With the larger price spread between virgin PSF and re-PSF in 2021, overseas recycled PSF, especially solid re-PSF, tends to flow into Chinese market.