China’s June petchem imports fall on weak demand, slow growth

27 July 2010 07:16  [Source: ICIS news]

By Judith Wang 

SHANGHAI (ICIS news)--China’s petrochemical imports continued their downtrend in June, reflecting the cooling down of the country’s economy and slower pace of industrial growth, analysts said on Tuesday.

“Last month, the domestic demand for petrochemicals was very soft with a cooling second-quarter economy and an easing of industrial production growth,” said Wang Qiang, an analyst with Shanghai-based Xiang Cai Securities.

China’s ethylene imports dropped 44% year-on-year in June to 52,768 tonnes while propylene imports dipped 23% to 129,185 tonnes, according to the data from China Customs. (please see table below)

June benzene imports plummeted 70% to 12,146 tonnes while imports of toluene decreased 37% to 57,622, the data said.

China’s methanol imports fell 10% year-on-year to 446,786 though it showed an 8% rise over May as trading activities increased despite the extension of antidumping investigations on imports from four countries, traders said.

Increased capacities from new petrochemical complexes like the Sinopec-SABIC Tianjin complex and Sinopec Zhenhai Refining and Chemical Co may have also contributed to the drop in imports, a local trader said.

Buyers had reduced imports due to increased availability of cheaper domestic cargoes with shorter delivery time schedules, the trader added.

“Domestic petrochemical prices also fell last month, so importers were unwilling to buy foreign cargoes on squeezed margins. On the other hand, exporters were rushing to sell cargoes to take profits on higher prices in overseas market,” Wang from Xiang Cai Securities said.  

In June, exports of high density polyethylene (HDPE) and low density polyethylene (LDPE) surged to 5,209 tonnes and 7,499 tonnes from 1,160 tonnes and 2,018 tonnes year on year respectively, China Customs data showed.

Traders and analysts expected petrochemical imports to rise in the third quarter as demand traditionally peaked between July and October in time for the increased demand from Europe and the US during Christmas.

However, a strong recovery in the domestic downstream sectors was necessary for petrochemical imports to show a long term upward trend, they added.

Jun-10	Import			Export
Product	Import (tonnes)	YoY growth (%)	MoM growth (%)	Export (tonnes)	YoY growth (%)	MoM growth (%)
Naphtha	217,113	107%	45%	117,365	0%	-32%
Olefins
Ethylene	52,768	-44%	-26%	0.001		-100%
Propylene	129,185	-23%	20%	0
Butadiene	8,617	-67%	-47%	14,654	657%	95%
Polymers
HDPE	244,735	-43%	-8%	5,209	349%	-42%
LDPE	90,806	-18%	-21%	7,499	272%	12%
LLDPE	150,943	-15%	-7%	3,413	352%	65%
PP	302,773	-26%	4%	6,781	137%	-20%
PVC	116,888	-46%	12%	32,171	334%	2%
Aromatics
Benzene	12,146	-70%	-48%	25,675	42%	185%
Toluene	57,622	-37%	-10%	5380	1687%	2604%
MX	24	-49%	-20%	25	47%	-32%
PX	280,685	-29%	5%	5,216	-88%
Intermediates
SM	264,576	-10%	-15%	2	-96%	-94%
PTA	466,986	10%	2%	0	-100%
MEG	534,450	12%	1%	276	182%	-7%
Phenol	37,963	-19%	-25%	4,942	8570%	-10%
Others
Methanol	446,786	-10%	8%	154	-56%	48%
Acetone	49,280	-12%	-9%	43	-57%	-46%
BPA	26,888	-33%	-18%	1,313	4135%	153%
Base oil	191,976	-22%	-14%	1,059	-32%	-81%
MMA	8,792	-50%	24%	5,870	437%	0%
PMMA	19,702	5%	-7%	1,275	2%	-21%
Source: China Customs

 With additional reporting from Dolly Wu

To discuss issues facing the chemical industry go to ICIS connect
Read John Richardson and Malini Hariharan’s blog – Asian Chemical Connections

By: Judith Wang
+65 6780 4359

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly