Strong export growth in the first two months for many chemical categories due to overseas demand

2025,03,28

According to data from the General Administration of Customs, in the first two months of this year, China exported 77600 tons of TDI, a significant increase of 87.74% compared to the same period in 2024.

Wu Yanni, an analyst at Shandong Zhuochuang Information Co., Ltd. (hereinafter referred to as "Zhuochuang Information"), told Securities Daily reporters that in terms of production capacity and output, in the first quarter of this year, the stability of TDI equipment operation in China was good, and the quarterly output is expected to reach a historical high of nearly 370000 tons.

For TDI exports, although we have experienced the Spring Festival holiday since the beginning of this year, factory export orders have remained at a high level before the Spring Festival. In February, due to the accumulation of pending orders before the holiday, TDI export volume still reached 35600 tons, exceeding market expectations, "said Wu Yanni.

Industry insiders told Securities Daily reporters that the current domestic TDI production capacity accounts for 48% of the global total production capacity. With the expansion of Wanhua Chemical Group Co., Ltd.'s Fujian Phase II project and Xinjiang project, as well as the commissioning of new facilities by Covestro Polymer (China) Co., Ltd. and Shandong Hualu Hengsheng Chemical Co., Ltd., the total domestic TDI production capacity is expected to exceed 2 million tons by 2025.

Wu Yanni stated that the strong performance of China's TDI exports since the beginning of this year has effectively diverted domestic production, and the expected export increment is still sustainable. In the second quarter, it may effectively balance the total domestic supply and demand, and have a bottoming effect on prices. Meanwhile, Mitsui Chemicals Co., Ltd. in Japan is expected to shut down some production capacity in the second quarter, and other overseas factories are also expected to reduce production due to high costs. Therefore, Chinese producers will continue to maintain their export enthusiasm.

In addition, the strong performance of exports has also provided support for the domestic price of titanium dioxide. According to data from the General Administration of Customs, in 2024, China's cumulative export of titanium dioxide was about 1.9017 million tons, a year-on-year increase of 15.84%, and the export volume reached a new high. Since the beginning of this year, China's titanium dioxide exports have continued to perform well, to some extent easing the supply pressure in the domestic market.

The relevant person in charge of Shandong Lubei Chemical Co., Ltd. told Securities Daily reporters that there is an expectation of sustained growth in China's titanium dioxide exports, which may become the main support for titanium dioxide prices.

Enterprises welcome dividends

At the same time, multiple chemical industry related enterprises are also seizing opportunities such as good overseas demand or low industry product prices to increase production scheduling.

According to data from the General Administration of Customs, the average export price of mainstream refrigerants increased significantly year-on-year from January to February.

The industry generally believes that strong downstream demand has driven up refrigerant prices. As the industry enters the peak demand season, enterprises are gradually increasing their production load, and the overall output of the industry continues to rise.

Shanghai Securities released a research report stating that with the recovery of demand for household appliances in domestic and foreign markets, air conditioning production continues to grow, and downstream enterprises' demand for refrigerant procurement has significantly increased. The demand side plays a significant role in supporting refrigerant prices.

The BOPET industry in China has experienced significant growth in export volume due to its price advantage in the past five years. According to monitoring data from Zhuochuang Information, the export volume of BOPET from China has been increasing year by year from 2020 to 2024, with a five-year compound growth rate of 10%.

Zhuochuang Information BOPET industry analyst Yan Qiaoling told Securities Daily reporters that currently, China's BOPET exports have two major advantages: first, strong production capacity of enterprises, rich product types, and the ability to quickly respond to customer order needs and deliver in a timely manner; Secondly, it has a price advantage.

The regular report released by Jiangsu Shuangxing Color Plastic New Materials Co., Ltd. shows that the company is actively expanding its market layout both domestically and internationally, responding to market challenges by expanding sales channels and establishing a wider customer network. At the same time, the company is focusing on optimizing its product structure, continuously enhancing market competitiveness, and expanding its new materials business.

Yan Qiaoling stated that the international environment is constantly changing, and Chinese BOPET enterprises should make innovation their core competitiveness. Through technological innovation, functional upgrades, and brand building, they should achieve a transformation and upgrading from "cost advantage" to "system competitiveness".

Author:

Mr. yin chang

E-mail:

yinchanghaoshuai@163.com