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

According to the China Customs, in Nov 2021, China's uncombed polyester staple fiber exports were 82,300 tons, up 19.91% month on month and down 6.81% year on year, and imports were 16,000 tons, up 80.19% month on month and down 12.67% year on year. Compared with the same period in 2019, exports rose by 15.96% and imports reduced by 9.96%.

In the first eleven months of 2021, uncombed polyester staple fiber exports totaled 838.1kt, an increase of 16.59% year on year, and imports amounted to 150.4kt, down 11.93% year on year. Compared with the same period in 2019, exports declined by 6.91% and imports reduced by 24.48%.

Recently, buying sentiment of HC re-PSF for export was favorable. Transactions in Zhejiang and Jiangsu were concluding for delivery, and in Guangdong, orders were under negotiation. By end Dec, 2021, the export orders have been delivered for all.

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, 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. In Jan-Nov, 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 Jan-Nov, 2021, imports totaled 28,639 tons. 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. Last year, 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 than last year. In Sep, imports were 729 tons, and in Oct, imports were only 459 tons, the lowest in recent two years. Since the outbreak of epidemic in May, Vietnam took the most strict lock-down measures. In the southern part of Vietnam, electricity consumption has shrunk significantly since Jul. In the third quarter, electricity consumption was 268 million kWh, a decrease of about 23.4% from the second quarter, a decrease of 82 million kWh, and a decrease of about 13.6% from the same period last year. With the relaxation of power rationing and control of epidemic, imports in Nov climbed up obviously to 1,940 tons.

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.

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 Jan-Nov, 2021, imports totaled 28,783 tons. It was heard that Thailand-origin HC re-PSF was sold at 6,700yuan/mt in Guangdong in end Dec. At that time, local 7-15D siliconized HC re-PSF offers were pegged at 6,600-6,800yuan/mt, some highly at 7,100yuan/mt, pre-tax ex-works. Therefore, the imported HC re-PSF impacted the market somewhat, weighing on the prices.

In January-February, 2021, imports from Cambodia were seen a small volume of 697 tons, while the imports were zero in Mar, May, Aug, Sep, Oct and Nov. In the first eleven months of 2021, imports totaled 1,261 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 70,485 tons in Jan-Nov, 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 in Mar this year were good, reaching 2,728 tons. Imports from Africa were zero in Oct-Nov.据The table below shows imports from Africa.

Virgin PSF and re-PSF plants will have new capacities further in 2022, and the market competition is supposed to be fiercer. The sea freight affects the international trade flow. Pay attention to the overseas plant production recovery and sea freight.