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Tuesday, January 23, 2018

China leading chemical importer – Drewry

According to the Drewry Chemical Carrier Quarterly 1Q03, chemical tanker supply is set for rapid growth in 2003 with 109 ships of 1.9 million dwt expected to be delivered. As the clean products market is strong at the moment this has led to increased earnings in the chemical markets. The change in the rates for the chemical tankers has not been of the same magnitude as for the CPP market. Drewry thinks this has to do with the so-called "swing" ships (chemical/oil tankers) not having a significant impact on the freight market. Demand for chemical tanker tonnage should continue to grow this year as the positive indicators from the recovering chemicals industry help to boost trade.

Organic chemical seaborne trade rose 6.5% in 2002. This increase was underpinned by a 19% increase in Chinese organic imports. Drewry estimates the Chinese organic imports for 2002 at 9.9 million tons, with China replacing the US as the leading importer for the first time. Strengthening exports for the US (+20% - emerging from a prolonged downturn) as well as Japan (+12%) also contributed to the expansion and helped offset decreased imports for the US (-11%) and Japan (-5%).

Revised forecasts for the inorganic seaborne movements point to a 2% increase in 2002. Again China is estimated to be the leading importer with almost 2 million tons imported replacing the US. Contributing to the increase in seaborne trade were exports from the US (+20%) and Japan (+12%). Both countries saw decreased imports with the US (-26%) and Japan (-6%).

Regarding vegetable oils and fats, 2002 saw further increases in imports to China making China one of the biggest export destinations.

More information on the development in chemicals seaborne trade can be found on the INTERTANKO web site at

http://www.intertanko.com/research/issue.asp?topic_id=158

Developments within easy chemicals freight rates can be found at

http://www.intertanko.com/research/issue.asp?topic_id=125