Low domestic demand for chemical products affects the petroleum resin trade

According to Chinese customs data, China ’s total imports of petroleum resin in January 2020 were 39.157 million tons, a decrease of 24% from the previous month and a decrease of 22.39% from the same period last year. The total export volume was 20,000 tons, down 2.42% month-on-month and down 13.54% year-on-year.



Import:

In January 2020, China's petroleum resin imports decreased significantly.

Analyzing the reasons, on the one hand, on the one hand, the Chinese market experienced a Chinese New Year holiday in January, the domestic infrastructure construction has basically stopped working, the petroleum resin terminal market, the amount of road marking paint has been reduced, and the consumption of petroleum resin has weakened. In addition, the sluggish market conditions for rubber and tires have weakened demand for petroleum resins.

Around the Spring Festival, many petroleum resin manufacturers withdrew their stocks from the market, so the imports of petroleum resin showed a decrease. The top three imports in January by source country are: the United States, South Korea, and Japan, which accounted for 49.35% of the total imports in January.

Export:

In January 2020, China's petroleum resin exports decreased slightly from the previous month, which was more obvious than the previous years.

Analysing the reasons, from the perspective of resource supply, the domestic epidemic did not break out in a large scale in early January, but before and after the Spring Festival, Shandong Kete, Puyang Ruisen, Puyang Xinyu, and Anhui Concentric Devices all had different degrees of reduction or shutdown, and The domestic petroleum resin is basically out of stock, so the export volume has decreased.

From January to February, the top three in terms of export volume are India, Thailand, and Italy, which accounted for 28.85% of total exports in January.

Looking at the future:

In terms of resource supply, Fushun Huaxing, Shandong Kete, Puyang Bender Road, Puyang Xintian and other plant installations have started construction, and domestic resources have shown growth.

On the other hand, in March-April, crude oil plunge triggered large fluctuations in the energy market, domestic chemical product demand recovery was limited, and trading in petroleum resin was sluggish.

Therefore, on the whole, the export volume may increase from March to April, and the import volume will decrease.