China PET bottle chip exports grow 27% in Jan-Aug 2021 on annual basis

According to the Customs, China PET chip export volume totaled 260kt in Aug 2021, y-o-y growing 30%, including 42kt for HS code 39076910, y-o-y up 57%, and 218kt for HS code 39076110, y-o-y rising 25.8%. Jan-Aug export volume totaled 2.405 million tons, including 460kt for HS code 39076910, y-o-y up 104%, and 1.95 million tons for HS code 39076110, y-o-y rising 20.7%. Combine two HS code, PET bottle chip exports in the first eight months was estimated at 2.165 million tons, an increase of 27% over the same period in 2020, but a decline of 7% over 2019. The overall gap gradually narrowed compared with that before the epidemic.

Export order intake mainly focused on the last 10 days of Aug. On the one hand, some overseas plants announced force majeure, and supply was in shortage in America. Some downstream plants in Europe and US urgently purchased from Asia, especially Chinese mainland, in order to maintain stable production. On the other hand, shipping schedule delay and container supply tensions have not alleviated, and with the spread of a new wave of epidemic, global port congestion has become a norm. With the promotion of shipping in bulk and the gradual acceptance of rising sea freight by customers, procurement demand also gradually emerges end year.

However, due to the collapse of the global supply chain system in 2021, shipping delays are quite serious. Looking at the shipping volume in single month won’t show the actual export condition, generally players need to refer to the figure 2-3 months forward.

In Jan-Aug 2021, PET bottle chip were mainly sold to Eastern Europe, Southeast Asia, Africa and Middle East. In the third quarter, as PET bottle chip plants in Asia and the Americas were shut down, and global ports became congested after a new round of epidemic spread, including some ports in China. Shipping time substantially lengthened. For example, Peru in South America increased by 230% over the same period last year, and Colombia increased by 533% over the same period last year, of which monthly delivery volume to Colombia in the second quarter was only a few hundred to a thousand tons.

In view of the increasingly serious epidemic in overseas market, some large overseas factories have also begun to increase their purchases from China around late August early September. Since these factories are basically distributed all over the world, China PET bottle chip export sales performed well recently. The result will be reflected in Sep-Oct export data, which is expected at 250kt and 300kt respectively in Sep and Oct.

Generally speaking, although Chinese factories suffered a lot of losses on high freight rates in the early days, and many buyers turned to factories based in India and Southeast Asia, in terms of the performance-to-price ratio and long-term transportation, many major foreign customers still choose to purchase from Chinese manufacturers. In 2021, it’s of big chance for China PET bottle chip exports to break through 3 million tons.