China’s propylene imports in the second quarter will decrease annually from the first quarter

In February, propylene imports increased significantly and reached the highest level since January 2018. The import volume of Korea and Taiwan of China has increased significantly, which is the main source of the substantial increase in import volume. In the latter stage, the equipment maintenance situation in Asia will gradually increase, so propylene imports may be expected to decline.

In February 2019, China imported 296,432.704 tons of propylene, an increase of 13.44% over January and 22.16% over February 2018. The average import price was $949.86 per ton, up 1.35% from January and down 12.02% from February 2018.

From the point of view of the source countries and regions, Korea is still the main source of imports. In February, the total import volume was 12752.526 tons, accounting for 43%. Taiwan ranked second, with imports totaling 77,900 tons in February, accounting for 26%. Japan ranked third, with imports totaling 56 285.221 tons in February, accounting for 19%.

From the point of view of the source countries and regions of imports, Korea’s imports in February increased by 10213.744 tons, an increase of 8.74%, compared with January’s, while Taiwan’s imports in February increased by 8549.4 tons, an increase of 12.33%. It can be seen that the main source of the increase in propylene imports in February was South Korea and Taiwan, China, while propylene imports in Japan were basically flat.

From the point of view of trade mode, the proportion of general trade is relatively large. In February, the total import volume was 25791.774 tons, accounting for 87%. The total import volume of import processing trade in February was 38527.463 tons, accounting for about 13%.

Forecast for future market

Propylene plant spring overhaul season is approaching, China has many devices into the overhaul, Japan and South Korea and other places also have some devices such as LG, Hanhua, YNCC, Chuangguang Xingyi, Mitsubishi have entered or will soon enter the overhaul, propylene supply will gradually reduce, which will have a certain impact on the import of propylene. Propylene imports in the second quarter are expected to decrease annually compared with the first quarter, which will benefit the domestic propylene market to a certain extent.