Overview of PP Imports and Exports in H1 2023

According to the China Customs, China imported 317,600 tons of polypropylene (PP) in Jun 2023, up 1.42% compared to the same period of last year. Of all imports, homo PP imports accounted 215.9kt, up 4.03% compared to the same period of last year; co PP 92.6kt, down 0.31% year-on-year; ra co PP for 9.1kt, down 28.49% year-on-year.

The total export volume of PP in Jun 2023 was about 118.7kt, a year-on-year increase of 30.09%.

In the first half of 2023, the total import volume of PP was approximately 2,014,200 tons, a year-on-year decrease of 2.69%. The total export volume of PP was approximately 671,400 tons, which decreased by 22.64% compared to the same period last year.

Compared to previous years, the decline in PP imports has slowed down, while the decline in PP exports has expanded.

1. Import

From the perspective of trade modes, ordinary trade remains the dominant method for PP imports, accounting for nearly 70% of the total import volume.

From the perspective of trading partners, countries including South Korea, Singapore, the United Arab Emirates, Taiwan, Saudi Arabia and Japan imported more than 100000 tons in the first half of the year, of which about 380,000 tons were imported from South Korea, accounting for 18.89%, ranking first, followed by Singapore and the United Arab Emirates, importing 264,100 tons (13.11%) and 259,300 tons (12.88%) respectively.

From the perspective of locations of importers and exporters, it is basically dominated by coastal provinces and cities, such as Zhejiang Province, Guangdong Province, and Shanghai. Among them, Zhejiang Province and Guangdong Province imported about 572,600 tons and 548,700 tons respectively, accounting for 28.43% and 27.25% respectively.

2. Exports

Since 2021, the period from March to June has become a peak season for PP exports in China. In 2021, the export volume during this period reached 793,700 tons, accounting for 57.06% of the total annual export volume. In 2022, the export volume during the same period was 742,700 tons, accounting for 58.42% of the total annual export volume.

However, based on the export data for 2023, this trend has weakened to some extent, with export volumes ranging between 110,000 to 120,000 tons from April to June, showing only a slight increase compared to February.

In terms of classification, homo PP continues to dominate the export market, with an export volume of approximately 588,400 tons in the first half of the year, accounting for 87.63% of the total export volume.

In terms of trading partners, the leading export destinations include Vietnam, Bangladesh, Indonesia, Brazil, and the Philippines. The main export markets are Southeast Asia (Vietnam, Indonesia, and the Philippines), South Asia (Bangladesh, Pakistan, and India), and South America (Brazil and Peru).

3. Apparent demand

In the first half of 2023, the apparent demand for PP was approximately 17.4539 million tons, showing a year-on-year increase of about 8.66%. Specifically, the apparent demand for PP in June 2023 was around 2.8995 million tons, representing a year-on-year increase of 13.33%.

Seeing from the historical data, as domestic production capacity continues to be released, PP import dependence has shown a downward trend year by year. In 2022, PP import dependence was about 13.40%. However, in 2023, except for February, PP import dependence has remained below 13% throughout the year, and in April 2023, PP import dependence even dropped below 10%, reaching a new low in recent years.