China's PFY Export May Grow In H2 2022

Market News

China's PFY Export May Grow In H2 2022

China's PFY exports amounted to 1,628kt in Jan-June, 2022, down 0.3% on the year, which were at 781kt in Q1, down 13.5% on annual basis, and at 847kt in Q2, up by 16.1% year on year. Exports surged in May and June. As for the second half of year, PFY export is likely to apparently increase in Q3 and Q4 of 2022. The total PFY exports are estimated to be at 3.15 million tons, a year-on-year rise of 5.1%. China’s PFY exports to Asia witnessed a fall. The proportion of Asia decreased to 59.4% from 62.4%, that of Europe and Africa inched down, and that of South America rose the most (especially Brazil), up to 12.1% from 9.4%, followed by North America. Exports of DTY outshined in the first half of 2022, with proportion up to around 50%, while those of POY and FDY witnessed negative growth. Export of POY decreased by nearly 30% year on year. It was cheaper to directly purchase DTY instead of buying POY this year. In addition, export increase mainly came from some garment processing nations (like Pakistan), while these regions are not integrated with DTY capacity, which further intensified the divergence of exported varieties.

Top 10 export destinations of PFY in H1 of 2021 and 2022 (Unit: tons)
Destination	H1 2021	Proportion	H1 2022	Proportion
Pakistan	132660	8.10%	175545	10.80%
Vietnam	144945	8.90%	154978	9.50%
Egypt	142767	8.70%	139764	8.60%
Brazil	109783	6.70%	138566	8.50%
Turkey	157351	9.60%	136653	8.40%
India	217063	13.30%	116478	7.20%
South Korea	111529	6.80%	105131	6.50%
Bangladesh	78131	4.80%	77850	4.80%
Indonesia	54351	3.30%	66589	4.10%
Mexico	34073	2.10%	47501	2.90%

Exports to India collapsed this year after skyrocketing in 2021, with export volume to India down by more than 100kt in H1 2022. Soaring exports to Pakistan and Brazil failed to make up the losses in India, which was one of the major reasons for diving proportion of Asia. One thing should be noted: Brazil market may have pulled forward some demand in the second half of 2022. It was heard that Brazil will levy anti-dumping duty on DTY from China, and cargos that reach Brazil before end-Aug will be waived the ADD, while the specific duty rate still needs further confirmation. Pakistani rupee has plummeted, greatly impacting its import and export.