China’s chemical imports recovering – German trade agency

06 January 2010 19:56  [Source: ICIS news]

TORONTO (ICIS news)--China’s chemical imports have recovered markedly in past months after a massive 24.8% year-over-year decline in the 2009 first quarter, Germany’s federal trade and investment promotion agency said on Wednesday.

In the 2009 third quarter, imports were down only 0.9% from the year-earlier quarter, with imports for September even recording modest 2.4% growth from the same month a year ago, Germany Trade & Invest (GTI) said in an analysis.

For the first nine months of 2009, China’s chemical imports were down 14.7% from the year-earlier period.

With further stabilisation in the fourth quarter, the agency expects China’s 2009 full-year chemical imports at $115bn (€81bn), down 7.0% from 2008.

GTI’s analysis of chemical imports includes organic chemicals, inorganic chemicals, pharmaceuticals, fertilizers, paints and coatings, plastics products, cosmetics, detergents and adhesives.

Germany-based chemical suppliers account for only a small share of China’s overall chemicals imports.

They supplied about 5.4% of the import market in the first three quarters of 2009, unchanged from their 5.4% share in 2008, when they ranked well behind producers from South Korea (16.5%), Japan (16.5%), Taiwan (14.5%) and the US (10.9%), according to GTI’s analysis.

However, in some product segments, including inorganic chemicals and pharmaceuticals, the German firms did much better, supplying 11.7% and 16.3% of the respective import markets, the agency said.

Meanwhile, China’s full-year 2009 chemical exports were expected at around $63.0bn, down 20.0% from 2008, after a 28.4% year-over-year decline to $44.7bn in the first three quarters, the agency said.

GTI noted that in some basic ethylene derivatives, China had turned into a net exporter, mainly due to massive new capacities being built up, often in cooperation with foreign partners.. 

The agency pointed in particular to the large petrochemicals joint ventures between China's Sinopec and Saudi Arabia's SABIC at Tianjin in northern China, as well as a planned project between Sinopec and Kuwait Petroleum at Zhanjiang in China's southern Guangdong province.

These projects have raised concerns about long-term overcapacities in some product markets, it said.

($1 = €0.70)

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