China’s exports of other polyether polyols in primary forms have kept growing at a 22.4% CAGR from 2019 to 2023. HS Code 39072990 includes a variety of products such as polyether polyol monomers, blends, polyethylene glycol, polyphenyl ether, polyether ether ketone, among others. Due to objective conditions, detailed data on export declarations cannot be obtained.

In 2023, China’s polyols exports amounted to approximately 1.38 million tonnes, representing a 25% year-on-year growth, according to Pudaily. Export destinations include over 150 countries or regions worldwide, mainly concentrated in Asia Pacific, the Middle East, and South America.

China Exports of Other Polyether Polyols in Primary Forms, 2019-2023 (Kt)

The significant growth in China’s polyols exports can be mainly attributed to the following three reasons:

• Polyols suppliers represented by Wanhua Chemical, Changhua Chemical, Longhua New Material, and INOV have further expanded their capacity, driving the growth of their foreign trade teams and resulting in a continuous increase in overseas business.
• Due to geopolitical risks and global economic slowdown, international chemical companies such as SK, Shell, and Covestro are accelerating their transformation. They have successively exited the polyols business in Asia Pacific, Russia, and other markets, and some of their facilities have experienced fires and other force majeure events, leaving opportunities for China’s exporters.
• Growing demand from regions such as South America and the Middle East has driven the growth of polyols consumption. Taking Brazil, a South American market, as an example, China’s exports of other polyether polyols in primary forms to this country rose from 24,697 tonnes in 2019 to 86,250 tonnes in 2023, showing a double-digit growth rate. PU rigid foam materials are used for insulation and can effectively reduce energy consumption. Brazil’s PU industry is boosted by the continuous development of civil construction and home appliance industry, thereby driving the export of China’s rigid polyols monomers and blends. Flexible slabstock polyols are mainly used in the production of mattresses and pillows. The development of lightweighting vehicles has also been a key driver for PU raw materials consumption.

Brazil's Imports of Other Polyether Polyols in Primary Forms from China, 2019-2023 (tonne)

The challenges brought about by China’s expanding polyols trade and Chinese polyols producers’ stronger presence have prompted Brazil to launch an anti-dumping investigation on Chinese polyether polyols. SECEX (The Brazilian Secretariat of Foreign Trade) opened on January 5 , 2024, a new antidumping investigation against Brazilian imports of polyether polyols with molecular weight between 300 and 4,500 g/mol and a purity level of 90% or more, originated from China and the United States of America. The petition was submitted by Dow Brasil Sudeste Industrial Ltda on July 31, 2023. The analysis of evidence of dumping considered the period from April 2022 to March 2023 and the analysis of injury considered the period from April 2018 to March 2023. Currently, 53 companies, including Wanhua Chemical, Yadong Group, Hongbaoli Group, Longhua New Material, and CNOOC-Shell, are being sampled for the investigation. The list of these polyols suppliers is shown below, and the subsequent impacts remain to be seen.

If you are interested in supply, demand, price, profit margin and market forecast of polyether polyols in Asia Pacific and other relevant information, you can subscribe to APAC Polyether Polyols Market Report 2023, published by PUdaily, via Tel: 86-21-61250980 and E-mail: marketing@pudaily.com.