China's butyl rubber imports hit a record high in 2020

In 2020, China's butyl rubber imports reached a record high of 284,000 tons, of which ordinary butyl rubber imports were 116,500 tons, a year-on-year increase of 38.36%, and halogenated butyl rubber imports were 167,500 tons, a year-on-year increase of 2.20%. Since the implementation of anti-dumping on imported halogenated butyl rubber in 2018, the import volume of butyl rubber in China has declined to a certain extent, but the import volume will increase again in 2020, mainly due to the following two points:
First, the import volume of ordinary butyl rubber has increased significantly, especially the import volume of ordinary butyl rubber from Russia and India has increased significantly. In 2020, the import volume of ordinary butyl rubber imported from Russia and India was 82,200 tons, accounting for 54.91% of the domestic consumption of ordinary butyl rubber. Russian sources of goods entered the Chinese market earlier, with high market recognition, and due to the impact of global public health events, the demand in the European and American markets is not good. Manufacturers sell more goods to China, and the price has dropped to historical lows. Domestic merchants have entered the market one after another. Bottom-buying, domestic supply has increased significantly. Indian goods have been flowing into the Chinese market since October 2019, and the import volume will continue to increase in 2020, and has now become the third largest source of ordinary butyl rubber.
Second, the import volume of halogenated butyl rubber in non-anti-dumping areas increased. In August 2018, the Ministry of Commerce issued an announcement to increase anti-dumping duties on imports of halogenated butyl rubber originating in the United States, the European Union and Singapore. Subsequently, the amount of imported halogenated butyl rubber from the region decreased significantly. But at the same time, imports of halogenated butyl rubber from Saudi Arabia, Canada and Russia began to increase. The import volume of halogenated butyl rubber in 2020 is only 10.24% lower than that in 2018, and the decline is limited.
From the perspective of import source countries, the top three sources of China's butyl rubber imports in 2020 are Russia, Saudi Arabia and Singapore. Compared with 2019, the import volume of Canadian sources has decreased significantly. The main reason is that from January to May, the operation of Canadian factories was unstable and the market supply decreased significantly. Russia's import volume still ranks first, and its proportion has further increased compared with last year, which is related to its geographical location and price advantage. The share of Russian ordinary butyl rubber in the domestic market has further increased.
At present, with the rise in the price of imported butyl rubber outer disks, the enthusiasm of importers to import has declined. And with the further release of domestic production capacity, China's butyl rubber self-sufficiency rate will gradually increase, and the import dependence will show a downward trend. China's butyl rubber imports are expected to decline in 2021.