China's PSF imports from Southeast Asia and Africa in Jan-May, 2023 – ChinaTexnet.com
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China's PSF imports from Southeast Asia and Africa in Jan-May, 2023

2023-07-07 07:55:34 CCFGroup

In May, 2023, uncombed or uncarded PSF exports of China were 98,000 tons, up 8.8% year on year but down 7.4% month on month, and imports were 7,100 tons, up 9.7% year on year and down 8.6% month on month. In Jan-May, 2023, uncombed or uncarded PSF exports amounted to 505kt, an increase of 27% year on year, and imports totaled 35.6kt, down 5% year on year.

 

PSF exports increased largely this year and reached multi-year high.

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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.

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PSF imports from Southeast Asia reduced gradually in recent years, especially the imports from Vietnam, which have declined significantly.

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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, and since 2022, imports were zero.

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Vietnam started to exert force in 2018. Following the solid waste ban, Chinese domestic plants moved to foreign countries gradually. Imports from Vietnam in 2018 soared to 13,113 tons and reached 30,567 tons in 2021. Imports in 2022 shrank largely, only reaching 10,773 tons, a fall of 64.8% from 2021.

 

In 2023, China PSF imports remain low, as there are many new capacity expansions, while export advantages of HC re-PSF to Southeast Asia are obvious. It was heard that China's export orders were not large and some orders were shifted to Southeast Asia.

 

Imports from Thailand were 45kt in 2019, and then reduced gradually. The imports put certain impact on Guangdong market. There were still new capacities, including HC re-PSF, hollow PSF and colored yarn. A few plants started up in 2022. In 2022, imports were 17,208 tons. In Jan-May 2023, imports reached 9,234 tons.

 

In addition, due to low operating rate of recycled chemical fiber plants and gradual recovery of travel consumption in 2022, PET flakes supply was sufficient this year and prices were low, partly sold to Vietnam and Malaysia. PET flakes prices once reached a low of 3,000yuan/mt+.

 

In 2021, the imports from Cambodia were 1,261 tons, 664 tons in 2022, and zero till now in 2023.

 

Imports from Southeast Asia totaled 98,390 tons in 2019, taking a share of 45.2%, 40,258 tons in 2022, 44.7% and 18,434 tons in Jan-May, 2023, with a share of 51.7%.

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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. Affected by higher sea freight, freight from Africa and Europe was relatively lower, with large price advantages, and much higher than the China's export price. In 2022, there were only imports from Uganda of 455 tons, mostly to Europe. Recycled PSF capacities continue to expand in Africa benefited from the edge in sea freight to Europe and no high tax. There are new capacities in Ghana in 2022-2023. Due to the customer shift in 2021, imports of China were limited from 2022.

China's PSF imports from Africa (incl. virgin PSF and re-PSF)
Unit: tons 2016 2017 2018 2019 2020 2021 2022 Jan-May, 2023
South Africa 0 230 24 5586 6122 638 0 925
Nigeria 0 0 0 5667 9069 6397 0 0
Tanzania 0 0 0 643 0 0 0 0
Egypt 0 0 102 39 0 0 0 0
Ethiopia 0 0 0 0 98 0 0 0
Uganda 0 0 0 0 0 0 455 0
Total 0 230 126 11935 15289 7035 455 925

 

Due to the trend of economic recession in Europe and the United States, exports are expected to be general in 2023, but Chinese supply pressure is greater, plants are actively seeking for exports, and exports are expected to increase slightly, slightly above the level of one million tons. Meanwhile, with the oversupplied situation in China, PSF imports are supposed to be hard to rise apparently in 2023.

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