By Tan Jie, Sinopec Maoming Petrochemical
With polyolefin (including polyethylene and polypropylene) equipment put into production in Zhejiang Petroleum & Chemical Co., Ltd., SINOPEC Zhenhai Refining & Chemical Co., Ltd., Daqing Haiding New Material Technology Co., Ltd., Weifang Shufukang New Material Technology Co., Ltd., Tianjin Bohai Chemical Industry Group Co., Ltd., CNOOC Ningbo Daxie Petrochemical Co., Ltd., Fujian Zhongjing Petrochemical Co., Ltd., and Lianyungang Petrochemical Co., Ltd., China’s polyolefin capacity reached 64 770 000 t/a, of which 34 960 000 t/a came to polypropylene while 29 810 000 t/a were for polyethylene. And the increasing capability and output, and downstream demand variations changed the import and export of China’s polyolefin.
According to GACC data (The General Administration of Customs of the People’s Republic of China), China’s polyolefin imports in 2022 fell 7.70% year-on-year to 16 397 900 tons, with polyethylene imports falling 7.68% from one year before to 13 465 700 tons and polypropylene imports dropping 7.80% to 2 932 200 tons. Polyolefin exports from China increased by 5.29% year-on-year to 1 878 500 tons, with polyethylene up 41.24% year-on-year to 721 900 tons and polypropylene down 9.15% year-on-year to 1 156 600 tons.
Polyethylene
1. Import analysis
The year 2022 witnessed China buying 8 945 400 tons of polyethylene from Saudi Arabia, Iran, UAE, South Korea and Singapore, declining 4.35% year-on-year and holding 66.43% of overall imports. Figure 1 shows China’s major polyethylene import sources.
Figure 1 China’s main polyethylene import sources in 2022
In the same year, China’s polyethylene imports, dealt by general trade and processing with imported material, shrank 8.57% year-on-year to 12 330 800 tons, accounting for 91.57% of total imports.
2. Export analysis
In the same period, 330 300 tons of polyethylene, soaring 70.08% year-on-year and holding 45.75% of total exports, were exported to Vietnam, Hong Kong of China, Bangladesh, Philippines, Russia, Saudi Arabia, Malaysia and Pakistan. Table 1 shows China’s major polyethylene export destinations.
Motivated by general trade and logistics in special customs supervision areas, China’s polyethylene exports were up 44.03% year-on-year to 591 800 tons, accounting for 81.98% of overall exports.
Polypropylene
1. Import analysis
In 2022, mainly imported from UAE, South Korea, Saudi Arabia, Japan, Taiwan of China and Singapore, China’s polypropylene imports declined 10.36% year-on-year to 2 165 400 tons, holding 73.85% of overall imports. Figure 2 shows China’s major polypropylene import sources in 2022.
Figure 2 China’s major polypropylene import sources in 2022
Promoted by general trade and processing with imported material, China’s polypropylene imports in 2022 declined 8.82% year-on-year to 2 575 100 tons, holding 87.82% of total imports.
2. Export analysis
China’s polypropylene in 2022, mostly exported to Vietnam, India, Bangladesh, Peru, Pakistan, Indonesia and the Philippines, tumbled 18.15% year-on-year to 529 500 tons, occupying 45.78% of overall exports. Among these countries, Vietnam is the largest export destination, with the exports reducing 40.16% year-on-year to 132 600 tons, accounting for 11.46% totally. Followed by India, its exports declined 16.89% year-on-year to 103 800 tons, occupying 8.97% overall. The third one is Bangladesh whose exports shrank 27.73% year-on-year to 63 600 tons, holding 5.50% of total exports. Table 2 shows China’s polypropylene export destinations from 2021 to 2022.
China’s polypropylene exports in 2022, dealt by general trade, shrank 8.92% year-on-year to 1 004 200 tons, occupying 86.82% totally.
Summary
(1) China imported polyolefin from Saudi Arabia, Iran, UAE, South Korea and Singapore by general trade and processing with imported material. The polyolefin was mainly exported to Hong Kong of China, Vietnam, India, Peru, Pakistan, Malaysia, Bangladesh and Philippines by general trade.
(2) With polyolefin production equipment built or expanded in Shandong Yulong Petrochemical Co., Ltd., North Huajin Refining and Petrochemical Co., Ltd., Shandong Jinhai Chemical Co., Ltd., Sinopec Hainan Refining & Chemical Co., Ltd., Shandong Chambroad Petrochemicals Co., Ltd., Hongrun Petrochemical (Weifang) Co., Ltd., Guangxi Hongyi New Material Co., Ltd., Grand Resource Co., Ltd., CNPC Guangdong Petrochemical Co., Ltd., Oriental Energy (Maoming) Co., Ltd., Huating Coal Cooperation Co., Ltd., Ningxia Baofeng Energy Group Co., Ltd., China’s polyolefin capability will further improve. The more advanced technology will strengthen China’s polyolefin products development. And the imports of polyolefin in the next 5 years will keep dwindling, but import layout will stay the same. The countries in the Middle East, by virtue of low-cost and high-quality, will still be major polyolefin importers in China. Despite limited growth in their own countries, South Korea and Singapore will be major polyolefin importers in China based on their diverse goods, consistent quality, good use effect and location, and favourable tax policies. Guangdong, Zhejiang, Shandong provinces, as well as Shanghai have been the dominant polyolefin production bases, which will thus be the polyolefin import destinations. Moreover, general trade remains the primary import strategy. And overcapacity driven by rapid polyolefin capability growth makes overseas export a vital means of easing domestic supply-demand tensions. With growing capability and improving technology, China’s polyolefin production cost will further reduce while product quality will increase, and China’s polyolefin exports will further expand, especially for polypropylene products.
