China's PSF imports from Southeast Asia and Africa in 2023

In Dec, 2023, PSF exports of China were 90,000 tons, up 3.3% year on year and down 14.7% month on month, and imports were 9,000 tons, up 50.9% year on year and down 18.1% month on month. For the whole year, exports totaled 1.205 million tons, an increase of 21.1% from 2022, and imports totaled 100kt, up 12.7% from 2022.

 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 China's PSF imports, the proportion of Southeast Asia continued to rise, having reaching 50.2% in 2023.

Since 2019, PSF import volumes from Southeast Asia have reduced. Though imports in 2023 recovered somewhat, the imports have reduced significantly compared to the peak time, like imports from Thailand and Vietnam, and imports from Indonesia also saw a reduction of 100,000 ton-level.

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.

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 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, imports recovered somewhat, to 18,638 tons.

Imports from Thailand were 45kt in 2019, and then reduced gradually. The imports put certain impact on Guangdong market. In 2022-2023, there were still new capacities, including HC re-PSF, hollow PSF and colored yarn. A few plants started up in 2022. In 2023, imports reached 22,042 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 and prices were low in the first half year of 2023, 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 50,422 tons in 2023, with a share of 50.2%.

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. After the customers' shift in 2021, the imports to China were limited since 2022, and in Jun 2023, imports from South Africa and Nigeria were seen with small quantity and prices were relatively low. Imports from Africa reached 2,462 tons in Nov, and imports from Ghana were the first time.

In China, virgin PSF and recycled PSF is oversupplied, and producers are active to seek for exports. In 2024, exports may continue to increase.

In addition, some recycled plants in China exit the market in 2023, and some production lines are transferred to overseas. Recycled chemical fiber capacity expansion continues in overseas markets in recent years. Capacity in India, Bangladesh, Pakistan and Africa increases, and in 2024, there are new capacity expansion plans in Indonesia.