According to data from the National Bureau of Statistics (NBS) seen by SSESSMENTS.COM, China imported more linear low-density polyethylene (LLDPE) in Q1 2023 than in Q1 2022, with a total increase of 5.61%. The imports in January 2023 rose to 401,817 tons, an increase of 6.66% from 376,728 tons in January 2022. In February 2023, the imports further increased to 427,409 tons, indicating a significant increase of 23.71% from 345,505 tons in February 2022. However, the imports declined in March 2023 to 398,908 tons, which is a drop of 9.47% from 440,644 tons in March 2022.
The data also shows that the month-on-month fluctuation in imports decreased by 8.77% from December 2022 to January 2023, but increased by 6.37% from January to February. Subsequently, imports fell again by -6.67% from February to March. Quarterly LLDPE import volume slipped -5.20% from 1,295,525 in Q4 2022.
China’s LLDPE imports rose on a year-on-year basis, while inflows of HDPE and LDPE fell. Market sources informed SSESSMENTS.COM that the increase came as import prices were more attractive than local materials. The attractive pricing prompted some traders to take some profits by importing LLDPE. On the other hand, HDPE and LDPE prices were less attractive, which may also contribute to the decrease in China’s imports of these PE resins. However, another market participant said the increase in LLDPE imports was not significant, with volume actually going down on a quarterly basis.
The surge in the arrival of US-origin materials signified the main trend in China’s LLDPE imports in Q1 2023. The US rose from the sixth to the second largest supplier of LLDPE to China, increasing its share from 5.64% to 20.83%. On a volume basis, the US’ LLDPE shipments to China rose from 65,624 tons in Q1 2022 to 255,873 tons in Q1 2023. Market participants attributed the surge in China’s imports of US PE to competitive freight costs and the ease in arranging shipments for the cargoes. Saudi Arabia remained the largest supplier of LLDPE to China in Q1 2023, with 316,927 tons and a 25.81% share. That marks an increase from 285,428 tons and a 24.54% share in Q1 2022.
Meanwhile, China’s LLDPE imports from Singapore and Thailand decreased in Q1 2023. Singapore dropped from the second to the third-largest supplier of LLDPE to China, decreasing its share from 22.29% to 15.62%, while its volume dropped from 259,160 tons to 191,851 tons. Thailand also decreased its shares of LLDPE supply to China, descending from third to fourth place. Thailand sold 86,384 tons of LLDPE to China, taking 7.03% of the market, compared to 133,968 tons and an 11.52% share, a year earlier.
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