Stats: S. Korea’s H1 PE exports reach all-time high; surging sales to Vietnam shine
China remains top buyer of S. Korean PE ‘by a landslide’
Total PE sales to China increased by 11% from the same period in 2023, reaching slightly more than 670,000 tons. Despite the yearly increase in total purchases, China’s share among South Korean PE buyers remained stable at 40%.
PE sales to Vietnam near 200,000 tons in H1
The H1 export data show that South Korea sold around 194,000 tons of PE to Vietnam. This volume represents a significant increase of 56% from the same period last year. Vietnam maintained its position as the second-largest buyer of South Korean PE, with a 12% share in the total H1 volume, up from 8% in H1 2023.
Türkiye drops from 3rd to 6th in the top buyers list
According to the data, South Korea’s total PE exports to Türkiye—last year’s third most important destination—slumped 51% year-on-year, reaching around 47,000 tons in the first half of the year. Türkiye’s share also dropped from 6% last year to 3% this year.
India settles in 3rd place despite unchanged market share
During the first half of the year, total PE sales to India rose by 8% from a year earlier, reaching almost 68,000 tons. This increase put India into the third spot on the top buyers list, although its market share remained at 4%.
Can 2024 total volume surpass last year’s record?
South Korea’s strong performance in PE exports during the first half of 2024 sets a positive tone for the rest of the year. The country exported a total of 3.15 million tons of PE in 2023, marking an all-time high. In the first half of this year, the total PE exports reached 1.67 million tons, setting a fresh record despite global shipping challenges and expanding domestic production in China, its top trade partner.
If South Korea maintains the same performance in the second half of 2024, the estimated total PE exports for the year would be around 3.34 million tons, surpassing last year’s record. However, challenges remain.
China’s PE production capacity is growing, with plans to add more than 3 million tons/year of PE for the remainder of the year. Despite Chinese producers’ efforts to balance supply and demand by reducing operating rates at existing sites, the market is likely to face higher supply pressure in the second half of the year. This could lead to more competitive local prices and increased demand for domestic products. Given this context, South Korea may need to focus more on alternative export destinations, including Vietnam and other Southeast Asian countries, India, Türkiye, and the European Union.
Additionally, competition from the US, Saudi Arabia, and Iran in the export markets, amidst China’s shrinking buying power, will play a significant role. Market analysts will be closely watching how these dynamics unfold in the coming months.
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