Import and export analysis of PTMEG in Q1-Q3, 2023

According to the data from China customs, import of PTMEG totaled 34kt in Jan-Sep, 2023, up by 68% year on year, and export reached 59kt, down by 5% on annual basis. Net export approached 25kt, a year-on-year reduction of around 40%.

Import

Import of PTMEG rebounded apparently in 2022, slightly lower than 2020 and 2021 and substantially lower than 2019 and before. Import and export of PTMEG reversed in 2023. 2022 was greatly affected by demand. Many downstream plants cut or suspended production. Demand for PTMEG fell, greatly impacting import. In 2023, downstream demand was stable and robust. Demand from spandex, shoe sole, PU and TPU markets grew, while supply grew slowly in China and the startup of new units was postponed. Import of PTMEG improved, up substantially on annual basis. Export of PTMEG dramatically increased from 2021 when domestic supply advanced and companies explored export market, which kept growing slowly in the first half of 2023. However, after downstream demand was impacted outside China and new units started production abroad, exports of PTMEG started reducing slightly from the end of Q2 in 2023. The total PTMEG exports fell slightly on annual basis in Jan-Sep, 2023.

PTMEG turned to be net exported from net imported in 2022 and such trend continues into 2023. However, as import increased while export slightly decreased from high level, the net exports dropped on the month.

Taiwan of China, Japan and South Korea were major import origins of PTMEG, with totaled proportion at 95% or above. PTMEG was mainly from Taiwan, China, with proportion at 70% or above in the first three quarters of the past five years, and its proportion was as high as 82% in 2023 due to growing import demand.

The import unit price was stable in the first half of 2023 but slightly decreased in the second half of year. The import unit price from Taiwan, China was slightly lower than the monthly average mainly under large orders, which slightly dropped in Apr-Jun but was steady in Q3. The import unit price of PTMEG from Japan was high and fluctuated more.

Fujian was the major destinations for imported PTMEG in Jan-Sep, 2023, up by 216% year on year and taking up around 35% of the total import. Import of PTMEG to other provinces also rose on the year but the increment was small. Based on the trend in 2019-2023, the volume to Jiangsu was in upward correction and import to Zhejiang and Shanghai dropped obviously in recent two years.

Export

The proportion of the top six export destinations accounted for around 90%, which was around 80% in 2021-2022. The export destinations were in disperse in 2021-2022. Export to European nations like Belgium and Netherland was big, and there was also demand from India. As for the change in Jan-Sep since 2019, export to Turkey and Brazil surged in recent three years, consistent with increasing layout of overseas market in some domestic companies. In addition, stimulated by improving quality of China-made PTMEG and the guarantee of supply capability, overseas demand under large orders grew. Demand from UK, Singapore and Thailand also obviously increased in 2021-2022. Supply was inadequate in some regions abroad affected by the energy problem in some suppliers. Under such circumstance, domestic companies embraced increasing export opportunity.

The export unit price was close among mainstream destinations, mainly at $0.1-0.3/kg.

Export of PTMEG from Zhejiang and Ningxia skyrocketed. Exports from Jiangsu surged year on year in 2021-2022, those from Sichuan grew stably and those from Xinjiang apparently rose in 2021 but obviously fell in recent two years.