Insight Focus
Chinese PET resin exports leap in June backed by previous high order intake and breakbulk.
South Korean imports dominated by Chinese resin, new ADD set to impact these flows.
Thai PET resin volumes improve into Japan but struggle to compete with Chinese resin into Vietnam.
China’s Bottle-Grade PET Resin Market
Monthly Exports
- Chinese bottle-grade PET exports (HS 39076110) leapt to around 516k tonnes in June, up 13% month-on-month and up a staggering 72% above levels a year earlier.
- Despite a rapid rise in container freight rates, shipments remained high backed by the previous month’s high order intake.
- The switch to breakbulk shipments by some large brand buyers also meant that future volumes were brought forward and condensed within a smaller shipment window.
- Looking forward order intake may take a hit with demand already covered from earlier breakbulk shipments, even with container freight rates beginning to ease slightly.
- Russia was the largest end destination for Chinese PET resin in June, with around 31k tonnes, up 6% from the previous month, and up 125% from June 2023.
- Indonesia is the second largest export destination, and traditional sink for Chinese PET resin, also saw sharp increases with 27.5k tonnes, up 48% on the previous month and 80% on the year.
- Resin exports to South Korea, the next largest destination, were also over 27k tonnes. However, the recent announced imposition of temporary anti-dumping duties on Chinese PET resin lasting until 29 November 2024 will undoubtedly impact future shipment volumes.
- Other destinations of note in June, include a swathe for Chinese exports to South America, including Uruguay, Colombia and Peru. All of which saw an increase in breakbulk movement in June and July.
- Ghana, not a typical Top 10 destination, saw over 18.5k tonnes shipped in June, likely also a breakbulk movement combining two-month’s demand in a single vessel.
Quarterly Exports
- Looking at the latest full quarter, Chinese bottle-grade PET Resin exports totalled 1.46 million tonnes in Q2’24, a new quarterly record high, up 13.3% versus Q1’24, and up 43% compared to Q2’23.
- YTD, for the first six months of the year, export volumes are around 2.75 million metric tonnes, up 27% on the same period a year earlier.
- Russia, South Korea, and Indonesia were the top three destinations for Q2’24, with 79k tonnes, 73k tonnes, and 71k tonnes respectively.
South Korea’s Bottle-Grade PET Resin Market
Quarterly Exports
- South Korean bottle-grade PET continued to decline in Q2’24 to just under 75k tonnes, down 1% on the previous quarter and down by 50% versus the same period a year earlier.
- For the first six-months of 2024, South Korean PET resin exports totalled 150k tonnes, down 27% compared to the previous year.
- South Korea’s largest export market remains the United States, which accounted for around 38k tonnes in Q2’24, 51% of total exports for the quarter.
- However, volumes to the US slowed in Q2 down 8% on the previous quarter, with exports to Japan, China, and Malaysia showing quarterly growth, up 8%, 29%, and 388% respectively, albeit from a much lower base.
- Volumes to counties within the EU remained limited, only real growth was an additional 800 tonnes shipped to Lithuania.
Quarterly Imports
- South Korea’s bottle-grade PET resin imports surged ahead of the decision on anti-dumping against Chinese PET Resin, to total 124k tonnes in Q2’24, a 62% increase versus the previous quarter, and up 71% versus Q2’23.
- Over 97% of the quarterly volume originated from China, a situation that is likely to change now temporary ADD has been imposed lasting until the ned of the year.
Thailand Bottle-Grade PET Resin Market
Quarterly Exports
- According to Thai Customs, Thailand exported a total of 103k tonnes of PET resin (HS 390761) in Q2’24, an increase of 8% over the previous quarter and 7% higher than a year earlier.
- The top three countries captured around 89% of total Q1 exports, these included Japan, the US, and Vietnam, with 52k tonnes, 27k tonnes, and 12k tonnes respectively.
- Japan accounted for over 51% of total Thai PET resin export alone.
- Exports to Japan increased 36% versus Q1’24, to around 52k tonnes; for the first six months of 2024, exports to Japan reached 91k tonnes, on par with the previous year.
- Exports to the US dipped in Q2, losing 4% on the previous quarter, but volume was till up, 53% versus Q2’23, and 84% for the first six months versus 2023.
- Exports to Vietnam have steadily increased since Q4’23, to around 20k tonnes in Q2’24. However, volumes are still substantial down on the previous year, falling 31% year-to-date as cheaper Chinese resin imports continue to flood into Vietnam.
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