2022 PFY exports grow more than anticipated

PFY export: growing more than anticipated

Many overseas nations lessened the regulation of pandemic restriction in 2022. Companies rapidly resumed production and operation. However, as the spread of pandemic continuously emerged in some regions of China and the prevention and control policy kept escalating, some orders for textiles and apparels were transferred to overseas market. Overseas demand for PFY was stimulated as a result. In addition, with soft local demand, some PFY producers increased the proportion of export. Therefore, exports of PFY increased more than anticipation in 2022.

According to the data from China customs, PFY exports amounted to 3305kt throughout 2022, a year-on-year rise of 10.3%. As for the monthly export, export in May was near 300kt and those in Jun, Nov and Dec was all above 310kt, with the Dec quantity hitting yearly high.

As for the varieties, exports of DTY outperformed in 2022, up by 18.7% on the year, and Pakistan, Brazil and Vietnam were the top three destinations. FDY came the next, with export volume up 11% year on year, and India, Vietnam and Pakistan were the top three export markets. Exports of POY saw the smallest growth rate, up by 7.7% on annual basis, and Egypt, India and Turkey were the major three destinations.

Exports of PFY to Egypt were near 330kt in 2022, up 20.3% year on year, ranking the first place. Exports to India exceeded 300kt, a year-on-year increase of 6.2%, and the proportion decreased by 0.3 percentage points to 9.3%. Exports to Vietnam also exceeded 300kt, up by 13% on annual basis. Exports to Brazil were above 300kt for the first time, up 40.3% on the year, with the proportion up by 1.9 percentage points to 8.9%. However, exports to Bangladesh reduced by 16kt or 9.6% year on year in 2022.

Remark: the freight of different ships and forwarders differs, and the above freight is only for reference.

The sea freight continued reducing in 2022 and the freight of some routes has declined to be lower than the pre-pandemic level by the second half of year. However, the sea freight once rebounded in Apr-Jun when delivery volume apparently rose with eased pandemic in Shanghai and the voyage curtailment of some shipping companies. In general, with unbalanced supply and demand, the freight extended lower.

PFY import: slumped as expected

PFY imports totaled 84kt in 2022, down by 28.2% over last year. Imports of textile filament was at 62kt, a year-on-year reduction of 12.4%, and those of PIY approached 22kt, down by 52.4% on annual basis.  

PFY imports in 2022 were slightly higher than those in 2020 but far lower than those in 2021, mainly impacted by the change of PIY import. Hailide's new unit started production in Vietnam in 2021 but it could not be exported directly. Therefore, it chose to deliver to China, ending up with soaring PIY import in 2021. Hailide could directly export PIY from Vietnam in 2022, resulting into apparently falling import volume in China.

Imported PFY focus on differential fiber and new fiber. After domestic PFY factories continue the R&D of products, import demand for PFY is expected to gradually diminish. As for PIY, Hailide will keep increasing PIY export directly from Vietnam and reduce the volume to China. Therefore, imports of PFY are expected to extend lower in the following two years.