The major propylene export enterprise in South Korea will undergo 2-month maintenance from the beginning of September, which might largely dampen the exports of South Korea in H2 2024. Furthermore, the supplies of Japan and Taiwan (China) will intensively recover around September due to the production resumption, and their exports will inch up in H2 2024.
According to China's new import tariff policy in 2024, the propylene import cost of South Korean resources inches down, while those from Taiwan (China) and Japan gain obviously. As the main propylene export destination in the Northeast Asian region, the tariff adjustment in China changes the propylene export situation in surrounding areas.
In detail, South Korean propylene export volume to China rose by 18,000 tonnes year on year over January-June in 2024, that of Japan dropped by 57,000 tonnes or 23.60% year on year, and that of Taiwan (China) plunged by 144,000 tonnes or 95.20% year on year.
The new import tariff policy in China influences the propylene trade flows in surrounding areas, and market insiders should pay attention to the unit operation of the export enterprises in the Northeast Asia region.
Written by Ariel Guo, gq@oilchem.net
Edited by Navy Liu, liuchuanjun@mysteel.com
