China PX imports in the first half of 2025

In the first half of 2025, China's total PX imports reached approximately 4.5 million tons, recording a year-on-year increase of about 2.5%. While the overall volume showed a slight rise, the import trend exhibited some variations. PX imports in Jan and Feb logged month-on-month decline of 22.7%, but beginning from Mar, the imports gradually recovered and stabilized at a monthly average of 780,000 tons.

In Jan and Feb 2025, the reduction in imports was attributed to the accumulation of PX inventories in the fourth quarter of 2024, coupled with large-scale maintenance of China domestic PTA units in the first quarter. Hanbang and Yisheng shut PTA facilities for a long periods, leading to a corresponding decrease in PX import demand. Additionally, shipping schedules also played a constraining role.

The rapid rebound in Mar was partly due to the alleviation of weather and port logistics conditions. Shipments recovered and PX stockpiles at overseas storage tanks were shipped to China.

Starting in Apr, monthly import volumes stabilized after a slight dip compared to Mar. Firstly, the intensive maintenance of overseas PX plants in the second quarter resulted in significant PX production losses; and secondly, the delayed startups of new PTA units until Jun, along with the prolonged shutdowns of some PTA units, limited the increase in demand for PX in the first half of 2025.

From the perspective of PX import origins, the import volume from Northeast Asia declined by 3.5% year-on-year in the first half of 2025, while imports from Southeast Asia saw a 17.4% increase. Meanwhile, shipments from the Middle East and Europe surged by 129% compared to the same period last year.

Imports from South Korea and Japan both saw slight growth, rising by 3.7% and 6.7% year-on-year, respectively, from January to June. As major sources of China's PX imports, the two countries exhibited slightly different export trends.

In the first half of the year, South Korea's export volumes gradually recovered. In Q1, S-Oil's unit remained operating at low rates, while units of GS' and SK's underwent shutdowns or operating rate reductions. Additionally, poor profitability in reforming and disproportionation processes led to further production cuts at some plants. However, as refining margins improved in Q2 and China's domestic PX supply tightened, South Korea's export volumes steadily increased.

Japan, on the other hand, showed the opposite trend. Despite an overall increase in export volume, shipments showed a reducing trend. Frequent unplanned shutdowns at ENEOS and Idemitsu facilities disrupted production, causing exports to gradually taper off from the peak at the beginning of the year.

Taiwan saw a notable decline in PX exports, down 31.5% year-on-year. In the first half of 2025, FCFC Ningbo's 1.2 mln mt/yr PTA line was under shutdown in the first half year, and its 1.5 mln mt/yr line was shut in May for nearly one month, directly leading to reduced demand for PX from Taiwan.

In Southeast Asia, Brunei's PX exports saw a relatively sharp increase. On one hand, Hengyi Brunei's facility operated smoothly without maintenance shutdowns in H1. On the other hand, demand for gasoline blending component further weakened outside China, and flows of aromatics to other regions decreased. As China's PX supply tightened, Brunei's PX shipments to China increased gradually.

Thailand also recorded a slight recovery in exports, but its PX output remained primarily for domestic consumption. Exports to China depended on arbitrage opportunities, meaning future shipments will likely remain sporadic.

In the Middle East, Kuwait's exports saw significant growth compared to last year due to long-term contracts with Chinese buyers. However, volumes remained far below the levels in earlier years.

Saudi Arabia, meanwhile, has been focusing on exporting PX to the US in recent years, with only occasional spot sales to China. The prolonged shutdown of Rabigh's PX unit (under maintenance since mid-Q2) has further reduced Saudi export availability.

Additionally, with Turkey's SASA PTA plant running relatively stably since Q2, demand for Middle Eastern PX has strengthened, which may divert future exports away from China.