PFY export of China in 2019

Export price of PFY remained low in Dec, attractive to overseas customers. PFY exports amounted to 248.3kt in Dec, up 13.1% on the month and 14.2% on the year respectively, and totaled 2.69 million tons in 2019, up 18.5% compared with the same period of last year. As for net export, the net export of PFY was around 239.5kt in Dec, up 14.2% y-o-y, and approached 2580kt throughout 2019, up 20.3% on the year.

PFY exports apparently increased with more emphasis on export in domestic PFY plants and intensified excessive capacity issue. In the case of weak domestic demand in 2019, mainstream factories eased inventory pressure by increasing exports, but subject to the global economic downturn, foreign market demand was also not optimistic, and market competition was fierce. Thus, export price was reducing, and PFY plants cut price for promotion, apparently driving up export volume.