Stats: China’s PP, PE trade volumes shrink in June amid demand woes

ChemOrbis Stats Wizard suggests that China’s foreign trade of PP and PE declined across the board in June, reflecting a sustained downtrend in polyolefin imports and persistently volatile exports. The drop in trade volumes reflects sluggish domestic and global demand, compounded by a fragile macroeconomic environment, logistical risks, and trade-related uncertainties.

PP: Exports fall behind imports after 3 months

PP exports, including PP copolymer and PP homopolymer, surpassed imports during the period from March to May, positioning China as a net PP exporter. However, this trend reversed in June as PP exports declined sharply, falling behind imports, according to ChemOrbis Stats Wizard.

Total PP exports registered a steep 24% drop month-on-month in June, although they still surged by 40% on a year-over-year basis. Imports, meanwhile, continued their downward trend for the fourth consecutive month, decreasing by 4% from May and 15% from June 2024—reaching the lowest monthly volume since March 2024. In value terms, China exported approximately $248 million worth of PP resins, compared to $273 million in imports.

Vietnam retains top spot for Chinese PP

While the top three PP suppliers to China remained unchanged from May, their rankings shifted. With an 18.5% market share, Singapore claimed the top position, followed closely by South Korea and Japan. The UAE, which fell out of the top three in May, dropped further to sixth place in June with only a 6.8% share, trailing behind Thailand, Russia, and Taiwan. This shift underlined Chinese buyers’ increasing preference for short-haul cargoes given elevated logistical risks amid geopolitical tensions in the Middle East.

On the export side, Vietnam cemented its role as China’s leading PP buyer, accounting for 20.6% of total shipments. Bangladesh and Thailand followed, while other ASEAN nations, including Indonesia and the Philippines, rounded out the top five destinations.

PE: Imports sink to over 7-year low; exports dip slightly

China’s PE imports—including HDPE, LDPE, LLDPE, and mLLDPE—declined for the third consecutive month in June, reaching their lowest level since March 2018, ChemOrbis Stats Wizard shows. Import volumes were down approximately 12% from May and 6% year-over-year. In value terms, PE imports stood at around $1 billion.

PE exports also edged lower, posting a 7% month-on-month decline. Nevertheless, they soared by over 40% compared to June 2024. The total export value reached approximately $115 million.

US falls out of top 5 suppliers; Vietnam becomes top buyer

A notable shift in the import landscape was seen in the supplier rankings. Saudi Arabia overtook the UAE as China’s top PE supplier with an 18.1% market share, while the UAE fell to second place. Singapore climbed to third place, marking its first appearance in the top three since March 2019.

Meanwhile, the US continued to lose ground, slipping to seventh place in June. PE shipments from the US to China plunged by more than half compared to May, likely influenced by the ongoing and unresolved tariff dispute between the two countries.

On the export front, Vietnam surpassed Bangladesh to become the largest importer of Chinese PE, capturing 18% of total exports.