Asian polymer markets are currently facing the onslaught of influx of low priced cargoes from South Korea, USA and Middle East. Players from these countries are offloading material at cheaper rates to several countries to prevent a domestic crisis. Petrochemical exports in China declined for the first time this year, dropping by 4% to Yuan 32.5 bln. To make matters worse, China is also flooded with cheap petrochemical imports from mainly South Korean players like LG, SK Energy, Samsung and the like. As per the Chemical Industry Association, the domestic petrochemical sector is considering a call for anti-dumping measures on extremely low priced polymers to protect the domestic industry.
As per Platts, In September alone, South Korean polypropylene imports accounted for 81,000 mt, or 32.5% of total imports, polyethylene accounted for 64,400 mt or 20.1%, and were cheaper than domestic material by atleast 700 Yuan.