China's low-priced PSF captures overseas market

China's PSF exports have been very rapid in the past two years, reaching 1.2 million tons in 2023 and 1.32 million tons in 2024. Behind the substantial increase in exports lies the upward shift in textile and apparel exports, but another strong contributing factor is the low price.

Vietnam and Pakistan are the two largest markets for China's PSF exports, and their export share has continued to increase in recent years. Currently, Vietnam accounts for 21% of China's PSF exports, and Pakistan accounts for approximately 11%.

Looking at the Vietnamese market, its annual PSF imports were typically between 300,000 and 400,000 tons, but increased significantly to 456,000 tons in 2024. Of this, 61% came from China, and the price of PSF from China was also better than its average import price.

The situation is similar in Pakistan, where the local annual PSF import volume is in the range of 200,000 to 250,000 tons. China's PSF, with its low price, has increased its share from 30% to around 35%.

Due to its low cost, China's PSF has a clear price competitive advantage in the global market. With saturated domestic demand, the export market will continue to share the burden of domestic production.