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China Significantly Expands Epoxy Resin Imports

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China Significantly Expands Epoxy Resin Imports

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IndexBox has just published a new report: ‘China – Epoxide Resins In Primary Forms – Market Analysis, Forecast, Size, Trends And Insights’. Here is a summary of the report’s key findings.

In 2020, imports of epoxide resins in primary forms into China jumped by +40% y-o-y to 405K tonnes, reaching $1.3B in value terms. Taiwan, South Korea, and the U.S. remain the key epoxy resin suppliers to China, with a combined 76%-share of the total imports. Thailand, the Netherlands, South Korea, the U.S., Taiwan, and Germany saw the highest spikes in exports to China. The average epoxy resin import price in China dropped by -10% y-o-y last year. 

Epoxide Resin Imports into China

In 2020, imports of epoxide resins in primary forms into China soared to 405K tonnes, picking up by +40% on the previous year’s figure. In value terms, epoxide resin imports surged by +26.1% y-o-y to $1.3B (IndexBox estimates) in 2020.

Taiwan (Chinese) (147K tonnes), South Korea (116K tonnes) and the U.S. (44K tonnes) were the main suppliers of epoxide resins to China, with a combined 76% share of total Chinese imports. These countries were followed by Germany, Thailand, Japan and the Netherlands, which together accounted for a further 19%.

In 2020, the most notable growth rate in terms of purchases, amongst the main suppliers, was attained by Thailand (+131% y-o-y), the Netherlands (+77% y-o-y), South Korea (+63% y-o-y), the U.S. (+41% y-o-y),Taiwan (+33% y-o-y) and Germany (+24% y-o-y). Imports from Japan reduced by -4% y-o-y during this period.

In value terms, Taiwan (Chinese) ($418M), South Korea ($283M) and the U.S. ($135M) appeared to be the largest epoxide resin suppliers to China, together comprising 67% of total imports. Japan, Germany, Thailand and the Netherlands lagged somewhat behind, together comprising a further 27%.

In 2020, the average epoxy resin import price amounted to $3,100 per tonne, waning by -10% against the previous year. Prices varied noticeably by the country of origin; the country with the highest price was Japan ($8,473 per tonne), while the price for the Netherlands ($2,353 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Japan, while the prices for the other major suppliers experienced more modest pace of growth.

Source: IndexBox Platform

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Global Lentil Imports Soar to $1.7B

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IndexBox has just published a new report: ‘World – Lentils – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Global lentil imports picked up by +25% y-o-y to $1.7B in 2020. India, Turkey and Pakistan remain the largest lentil importers worldwide, accounting for 37% of global import volume. Last year, Egypt, Turkey, Pakistan, Italy, Germany, India, Canada and the U.S. recorded the highest increases in the import volume of lentils. The average lentil import price rose by +19% y-o-y in 2020. Canada and Australia keep leading positions in global lentil exports. 

Global Lentil Imports by Country

In 2020, global imports of lentils stood at 2.9M tonnes, increasing by +4.9% against the previous year’s figure. In value terms, lentil imports skyrocketed +25.1% y-o-y to $1.7B (IndexBox estimates) in 2020.

India represented the major importing country with an import of about 1.1M tonnes, which resulted in 37% of total imports. Turkey (630K tonnes) held the second position in the ranking, distantly followed by Pakistan (194K tonnes) and Sri Lanka (178K tonnes). All these countries together held approx. 35% share of total imports. Canada (103K tonnes), Egypt (86K tonnes), the U.S. (72K tonnes), Italy (62K tonnes), Spain (59K tonnes) and Germany (43K tonnes) followed a long way behind the leaders.

In 2020, lentil imports in Egypt grew nearly twofold, while in Turkey, Pakistan, and Italy, the annual growth rate overcame the 50% figure; Germany and India also posted tangible double-digit growth.

In value terms, the largest lentil importers worldwide were India ($581M), Turkey ($312M) and Pakistan ($104M), with a combined 59% share of global imports.

In 2020, the average lentil import price amounted to $591 per tonne, growing by +19% against the previous year. There were significant differences in the average prices amongst the major importing countries. In 2020, the country with the highest price was Germany, while Turkey was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Canada, while the other global leaders experienced more modest paces of growth.

Major Suppliers of Lentils

Canada was the key exporter of lentils in the world, with the volume of exports resulting at 3.1M tonnes, which was near 67% of total exports in 2020. It was distantly followed by Australia (661K tonnes), Turkey (406K tonnes) and the U.S. (329K tonnes), together making up a 30% share of total exports.

In value terms, Canada ($1.7B) remains the largest lentil supplier worldwide, comprising 63% of global exports. The second position in the ranking was occupied by Australia ($349M), with a 13% share of global exports. It was followed by Turkey, with a 12% share.

Source: IndexBox Platform

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BIG SHIP READY: COSCO Shipping is Among Container Lines that Call Port Tampa Bay

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Port Tampa Bay has emerged as Florida’s preferred new supply chain solution for containerized cargo. The incorporation of direct Asia container services and new connections to Mexico and Central America have significantly enhanced the port’s role in serving the state’s largest and fastest-growing market—the Tampa Bay/Orlando 1-4 Corridor, Florida’s distribution hub. 

The Central Florida region has boomed into one of the hottest industrial real estate markets in the country, becoming the state’s hub for distribution, logistics and manufacturing. As the “front door to the I-4,” Port Tampa Bay is well situated to help businesses capitalize on the growth of the region, which is driving demand for retail, e-commerce, food & beverage, energy products and construction & building materials. 

New tenant Celadon will soon break ground on a paper fiber manufacturing plant that aims to generate up to 80,000 TEUs/year for export to Asia. The port recently expanded terminal capacity with additional paved storage and extended berths to keep pace with continued growth. Part of the expansion includes additional cranes and equipment, and new trans-load warehouse facilities.

The Port recently welcomed CMA CGM, COSCO, Evergreen, OOCL, Maersk and Sealand to their family of container lines offering an array of new services, joining established carrier partners ZIM, MSC and Seatrade. 

Expanded connections serving trade with Mexico offer more efficient supply chain solutions versus the traditional costly and congested overland routes. Work Cat recently began offering a weekly Brownsville Texas-Port Tampa Bay container-on-barge services using 53-foot containers, which is especially attractive for customers used to receiving deliveries by truck from Monterrey and Northern Mexico. ZIM recently launched a weekly Altamira-Port Tampa Bay service, the Mexico Tampa Shuttle, with Kuehne and Nagel as partners on the new service, promoted as the Blue Marlin Express. Seatrade’s SeacatLine also increased the frequency of its Costa Rica service to weekly.

Importers and exporters in Florida’s distribution hub now enjoy significant savings as truckers make as many as three to four roundtrip deliveries per day from Port Tampa Bay to their distribution centers. Partners such as container terminal operator Ports America and cold storage specialist Port Logistics Refrigerated Services have made it possible for Port Tampa Bay to expand infrastructure and capacity to ensure it is well-positioned for continued growth.

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Durum’s Share in the European Wheat Imports Spikes

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IndexBox has just published a new report: ‘EU – Wheat – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

Imports of durum wheat in the EU surged by +25% y-o-y to 6.1M tonnes, reaching $1.7B in 2020. Over the last year, the share of durum supplies by volume in the total European wheat imports increased from 15.4% to 19.2%. Italy represents the largest importer of durum wheat in the EU. Belgium emerged as the fastest-growing European importer of durum wheat in 2020. The total imports of all types of wheat estimated at 32M tonnes or $7.4B in value terms.

European Imports of Durum Wheat

In 2020, imports of durum wheat in the EU surged to 6.1M tonnes, with an increase of +25% against the previous year’s figure. In value terms, durum wheat imports soared by +29.0% y-o-y to $1.7B in 2020. Over the last year, the share of the durum wheat supplies (by volume) in the total European wheat imports increased from 15.4% to 19.2%.

Italy represented the major importing country with an import of around 3.2M tonnes, which amounted to 51% of total imports. Belgium (866K tonnes) occupied the second position in the ranking, followed by Spain (498K tonnes) and Germany (372K tonnes). All these countries together occupied approx. 28% share of total imports. Poland (264K tonnes), the Netherlands (263K tonnes), Portugal (145K tonnes), Greece (103K tonnes) and Luxembourg (96K tonnes) followed a long way behind the leaders.

Imports into Italy in volume terms increased by +27.8% in 2020. Belgium (+163.7%), Poland (+105.5%), Portugal (+51.0%), Greece (+7.6%) and Luxembourg (+5.5%) displayed positive paces of growth. Moreover, Belgium emerged as the fastest-growing importer imported in the EUin 2020. By contrast, Germany (-3.7%), Spain (-8.3%) and the Netherlands (-30.5%) illustrated a downward trend over the same period.

In value terms, Italy ($950M) constitutes the largest market for imported durum wheat in the EU, comprising 55% of total imports. The second position in the ranking was occupied by Belgium ($200M), with a 12% share of total imports. It was followed by Spain, with a 7.7% share.

In 2020, the durum wheat import price in the EU amounted to $282 per tonne, increasing by 3.5% against the previous year. Average prices varied somewhat amongst the major importing countries. In 2020, major importing countries recorded the following prices: in Germany ($319 per tonne) and Luxembourg ($304 per tonne), while Poland ($214 per tonne) and Belgium ($230 per tonne) were amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Spain, while the other leaders experienced more modest paces of growth.

Total European Wheat Imports

In 2020, approx. 32M tonnes of wheat were imported in the EU; flattening at the previous year’s figure. In value terms, wheat imports rose by +2.2% y-o-y to $7.4B (IndexBox estimates) in 2020.

In 2020, Italy (8M tonnes), distantly followed by the Netherlands (4.4M tonnes), Spain (4.2M tonnes), Germany (4M tonnes) and Belgium (3.8M tonnes) were the largest importers of wheat, together comprising 77% of total imports. Romania (1.2M tonnes), Portugal (1.2M tonnes), Austria (1.2M tonnes), Greece (0.9M tonnes), Poland (0.9M tonnes) and Latvia (0.7M tonnes) followed a long way behind the leaders.

In value terms, Italy ($2B) constitutes the largest market for imported wheat in the EU, comprising 28% of total imports. The second position in the ranking was occupied by the Netherlands ($962M), with a 13% share of total imports. It was followed by Spain, with a 13% share.

The wheat import price in the EU stood at $233 per tonne in 2020, picking up by +2.9% against the previous year. Average prices varied somewhat amongst the major importing countries. In 2020, major importing countries recorded the following prices: in Italy ($256 per tonne) and Portugal ($243 per tonne), while Poland ($199 per tonne) and Austria ($207 per tonne) were amongst the lowest.

Source: IndexBox Platform

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PROJECTING GOOD THINGS FOR THE PORT OF GREATER BATON ROUGE

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Despite a worldwide pandemic, three successful projects were completed at the Port of Greater Baton Rouge in 2020: a major expansion of shipping container storage capacity; delivery of a custom-made, deep-reach stacker for transloading containers into and out of barges; and the opening of a $22 million railcar chambering yard.

Last year, more than 16,000 containers moved through the Louisiana port, more than double the volume of 2017 when the service began. In the process, SEACOR AMH LLC transports empty containers from Memphis to the Port of Greater Baton Rouge via barge to be loaded with resin from area plants, and then moves the loaded barges downriver to the Port of New Orleans for international transport. 

This rapid increase in container volumes prompted the Port of Greater Baton Rouge to increase the size of its container storage facility. The $5 million expansion created nearly 4 acres of additional paved container storage capacity and gave the port the ability to store about 2,000 containers.

A 20% efficiency gain in its container operations was just one positive outcome of the port’s new, deep-reach container stacker known as The Big Red Beast. With its telescopic boom for stacking four containers high, shorter loading and unloading times have helped meet the increasing demand for container shipping services for area customers in the petrochemical industry sector, says Port Executive Director Jay Hardman. Financed almost 100% by a Maritime Administration grant, the one-of-a-kind Beast was designed and manufactured specifically for the port by Taylor Machine Works of Louisville, Mississippi.

The railcar chambering yard was completed in 2020 on port property south of the Intracoastal Waterway. The yard facilitates the storage of railcars and expedites the arrival and departure of unit trains of 80 or more railcars into and out of the port. The chambering yard currently facilitates delivery by rail of wood pellets to tenant Drax Biomass for export overseas. Grön Fuels, which recently announced plans to build a $9.2 billion renewable fuels complex at the site, is also planning the utilization of the rail chambering yard.

The Port of Greater Baton Rouge is the head of deepwater navigation on the Mississippi River; a 45-foot shipping channel to the mouth of the Mississippi River is maintained by the U.S. Corps of Engineers. The port’s deepwater terminal on the Mississippi is currently capable of docking three deep-draft vessels simultaneously. 

 

Port leadership recently applied to the Louisiana Department of Transportation Port Construction and Development Priority Program (PCDPP) for a $15 million rehabilitation/expansion of its “Northern Berth” on the Mississippi River that would allow for the Port of Greater Baton Rouge to have a fourth deep draft vessel berth at its northernmost point.

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New Regulations to Boost Investments into Battery Recycling in the EU

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IndexBox has just published a new report: ‘EU – Electric Accumulators – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

The battery market in the EU is expanding on the heels of growth in the electric vehicle and renewable energy industries. In July 2021, the EU instituted new regulations that force battery producers to diminish greenhouse gas emissions throughout all stages of the product lifecycle. Increases in mandatory levels of recovered batteries and the share of recycled materials used in new ones will lead to a critical need for additional recycling capabilities and could drive an investment boom in the market.

Key Trends and Insights

The Global Battery Alliance projects that by 2030 worldwide demand for batteries will increase 14 fold due to the widespread implementation of electric transport methods and deployment in electricity grids. The EU may account for 17% of global demand. In 2030 demand for lithium batteries is forecast to surpass the current amount by a factor of 18, cobalt by 5 and in 2050 by a factor of 60 and 15 respectively.

In July 2021, the EU implemented new regulations to ensure safe use, recycling and disposal of batteries. These regulations could lead to serious changes in the accumulator market. From July 1, 2024, producers selling batteries in the European market will have to provide declarations indicating the carbon footprint created throughout production. Then from July 1, 2027, they must comply with maximum lifecycle carbon footprint thresholds for their products. This will push expenses for producers up as they implement technologies to reduce greenhouse gases. To help companies stay competitive, the new regulations outline developing a plan where governments are obligated to purchase products manufactured with green technologies.

In Europe, over 1.9 million tonnes of waste batteries are generated annually. The current level of recycled materials in the EU is significantly low: only 12% of aluminium, 22% of cobalt, 8% of manganese, and 16% of nickel used within the EU is recycled. Currently, almost no lithium is recovered in the EU because it is deemed to not be cost-effective.

In accordance with the new regulations, targets are set for recovering metals from waste batteries at 90% for cobalt, copper, lead, and nickel, and 35% for lithium by the end of 2025. By 2030 the recovery level should reach 95% for cobalt, copper, lead and nickel, and 70% for lithium. This will require a significant increase in capacity to recycle batteries and thus provide new opportunities for investors. The sector for lithium is one the fastest growing areas and is forecast to expand by 30% annually, experiencing the highest level of demand for recycling capacity.

Electric Accumulator Imports in the EU

In 2020, approx. 1.2B units of electric accumulators were imported in the EU; with a decrease of -8.1% against the previous year’s figure. In value terms, accumulator imports soared to $23.1B (IndexBox estimates) in 2020.

Germany represented the largest importing country with an import of about 386M units, which finished at 33% of total imports. It was distantly followed by Poland (199M units), Hungary (168M units), the Netherlands (96M units), France (65M units) and the Czech Republic (58M units), together achieving a 49% share of total imports. Italy (37M units) followed a long way behind the leaders.

In value terms, Germany ($7.5B) constitutes the largest market for imported electric accumulators in the EU, comprising 32% of total imports. The second position in the ranking was occupied by France ($2.4B), with a 11% share of total imports. It was followed by the Netherlands, with a 6.8% share.

In 2020, the average annual rate of growth in terms of value in Germany totaled +48.6%. The remaining importing countries recorded the following average annual rates of imports growth: France (+1.6% per year) and the Netherlands (+3.4% per year).

The accumulator import price in the EU stood at $20 per unit in 2020, growing by 43% against the previous year. In 2020, the most notable rate of growth in terms of prices was attained by the Czech Republic, while the other leaders experienced more modest paces of growth.

European Imports of Primary Cells and Primary Batteries

Germany represented the major importing country with an import of around 3.1B units, which amounted to 33% of total imports. It was distantly followed by Poland (1,470M units), Belgium (743M units), Romania (624M units), France (605M units), the Netherlands (495M units), Italy (474M units) and Spain (452M units), together constituting a 52% share of total imports.

In value terms, Germany ($534M) constitutes the largest market for imported primary cells and primary batteries in the European Union, comprising 23% of total imports. The second position in the ranking was occupied by France ($238M), with a 10% share of total imports. It was followed by Poland, with a 10% share.

In Germany, the value of battery imports declined by an average annual rate of -2.3% in 2020. The remaining importing countries recorded the following average annual rates of imports growth: France (+10.3% per year) and Poland (+22.0% per year).

Source: IndexBox Platform

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New Executive Order Authorizes Imposition of Additional Sanctions on the Government of Belarus and Certain Sectors of the Belarusian Economy

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On August 9, 2021, President Biden issued Executive Order 14038 (the “EO”) which expanded the scope of the national emergency previously declared in EO 13405 of June 16, 2006. The EO imposes additional sanctions in response to conduct by the Government of Belarus (“GoB”) and the President Alyaksandr Lukashenka regime which the Biden Administration described as “long-standing abuses aimed at suppressing democracy and the exercise of human rights and fundamental freedoms.” As specific examples, the EO cites the “fraudulent” August 9, 2020 election administered by the GoB, in which Lukashenka was reelected, and the GoB’s forced grounding of an international flight to arrest Belarusian journalist Raman Pratasevich and his partner Sofia Sapega.

Among other things, the EO gives the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”) the discretionary authority, in consultation with the U.S. Secretary of State, to impose blocking sanctions on GoB agencies, GoB leaders and officials, and individuals and companies operating in the defense and related materiel, security, energy, potassium chloride (potash), tobacco products, construction or transportation sectors of the Belarusian economy. The EO also authorizes OFAC to sanction individuals and entities “responsible for or complicit in” activities such as “actions or policies that threaten the peace, security, stability, or territorial integrity of Belarus,” suppression of human rights and freedom of the press, electoral fraud, deceptive transactions, and public corruption.

OFAC immediately used its authority under the EO in order to add multiple persons and entities to its Specially Designated Nationals & Blocked Persons List (“SDN List”). Those added to the SDN List under the EO include:

-BelKazTrans and Closed Joint-Stock Company New Oil Company, who were sanctioned for operating in the energy sector of the Belarusian economy;

-Inter Tobacco, Energo-Oil and Grodno Tobacco Factory Neman, who were sanctioned for operating in the tobacco product sector of the Belarusian economy;

-Cyprus-based Dana Holdings Limited, who was sanctioned for operating in the construction sector of the Belarusian economy; and

-Belaruskali OAO, who was sanctioned for being owned by the GoB and for operating in the potassium chloride (potash) sector of the Belarusian economy.

The U.S. Treasury Department published a separate press release which identifies all of the SDNs designated by OFAC under the EO. As a result of these designations, all property and interests in property of these SDNs that are or come within the U.S. or the possession or control of U.S. persons are blocked, and U.S. persons are generally prohibited from engaging in transactions involving such SDNs unless authorized by OFAC. OFAC’s “50% Ownership Rule” will also extend these blocking sanctions to any entities owned 50 percent or more, individually or in the aggregate, directly or indirectly, by one or more of these newly designated SDNs. Additionally, the EO gives OFAC the authority to impose blocking sanctions on any non-U.S. persons who provide material assistance to any SDN designated pursuant to the EO.

For Belaruskali OAO, OFAC issued General License 4, which authorizes the wind down of transactions involving Belaruskali OAO, or any entity owned 50% or more by Belaruskali OAO, through 12:01 a.m. eastern standard time on December 8, 2021. OFAC issued FAQ 918 to provide additional information regarding General License 4.

OFAC also issued FAQ 917 which clarifies the scope of the EO’s sector-based sanctions as follows:

The identification of a sector pursuant to E.O. of August 9, 2021 provides notice that persons operating in the identified sector risk exposure to sanctions; however, the identification of a sector does not automatically block all persons operating in that sector of the Belarus economy. Only persons designated on OFAC’s Specially Designated Nationals and Blocked Persons List (SDN List), and entities owned 50 percent or more, individually or in the aggregate, directly or indirectly, by one or more such persons, are subject to blocking sanctions.

As a result, the EO does not automatically sanction persons operating in the identified sectors of the Belarusian economy, but it does provide OFAC with the authority to impose blocking sanctions on such persons at any time.

_____________________________________________________________________

Cortney O’Toole Morgan is a Washington D.C.-based partner with the law firm Husch Blackwell. She leads the firm’s International Trade & Supply Chain group.

Grant Leach is an Omaha-based partner with the law firm Husch Blackwell focusing on international trade, export controls, trade sanctions and anti-corruption compliance.

Tony Busch is an attorney in Husch Blackwell’s Washington, D.C. office.

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PORT OF LONG BEACH PLAYS THE LONG GAME

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The Port of Long Beach has become a global leader in operational excellence, outstanding customer service, moving cargo with reliability, speed, and efficiency making it the premier U.S. gateway for trans-Pacific trade. 

As the second-busiest container seaport, the Port of Long Beach handles trade valued at $200 billion annually and supports 2.6 million trade-related jobs across the United States. This includes 575,000 in Southern California and one in five jobs in Long Beach, which is southwest of Los Angeles. 

Spanning across 3,200 acres with 31 miles of waterfront, 10 piers, 66 post-Panamax cranes, and amongst the deepest berths in the country, the port’s world-class facilities can accommodate the largest shipping vessels in the world. Goods moving through the port originate in or are destined for every U.S. congressional district. 

With a keen eye toward building a successful and sustainable future, the port is pursuing long-term capital improvement projects. In 2020, the port opened a new bridge built for the modern era of shipping and goods movement. This year, the port will complete the final phase of the world’s most technologically advanced container terminal, the Long Beach Container Terminal at Middle Harbor.

In the next 10 years, the port plans to invest $1.7 billion in modernization to further prepare for the demands of global trade. The strategy includes investing $1 billion in on-dock rail projects, aimed at substantially increasing reliability, adding capacity, strengthening competitiveness, improving speed-to-market, and allowing for the rapid movement of cargo throughout the harbor.

The Port of Long Beach operates Foreign Trade Zone 50 that lessens the impact of tariffs and eliminates Customs clearance delays by having shipments delivered directly to qualifying businesses within Orange County and parts of San Bernardino and Los Angeles counties.

Additionally, the port is proactively working to handle the ongoing surge in cargo shipments brought on by consumer demand for imports. Among other measures, the port has opened STOR (Short-Term Overflow Resource yard) to provide extra near-dock space to help importers and exporters cope with the cargo volume. 

The Business Recovery Task Force, which was established just over a year ago, serves as a key internal group to work with customers, industry partners, labor and government agencies to ensure terminal and supply chain operations continue without disruption.

Added investigations for locating funds to enable a 24/7 supply chain will put the port on the same footing here in the U.S. as they are in Asia and parts of Europe.

Customers choose the Port of Long Beach for the most dependable, cost-effective and fastest delivery of goods in the world, along with the strong relationships it maintains with industry, community, environmental advocates and partner agencies. In 2020, industry leaders named it “The Best West Coast Seaport in North America” for the second consecutive year. 

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Russian and Indian Suppliers Scale Up Packaging Paper Exports to China

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IndexBox has just published a new report: ‘China – Wrapping Papers – Market Analysis, Forecast, Size, Trends and Insights’. Here is a summary of the report’s key findings.

China’s imports of wrapping paper, packaging paper and paperboard reached the highest level ever, picking up by +54% to 892K tonnes in 2020. Russia, India and Viet Nam constitute the largest suppliers to China. Last year, Russia and India boosted their exports to China threefold, while Viet Nam saw a 58%-spike in terms of volume of exported products to China. In 2020, the average wrapping paper import price dropped by -24.1% y-o-y.

Imports into China

In 2020, the amount of wrapping paper, packaging paper and paperboard imported into China surged to 892K tonnes, jumping by +54% on the previous year. In value terms, wrapping papers imports skyrocketed by +17.1% y-o-y to $627M (IndexBox estimates) in 2020.

The total imports of wrapping paper, packaging paper and paperboard to China grew from 350K tonnes in 2010 to 892K tonnes in 2020. Over the last decade, India recorded the most prominent growth rate of exports to China. India broke into the Chinese market and became the second-largest supplier, ramping up the supplies to China from 16K tonnes in 2017 to 100K tonnes in 2020.

Russia (125K tonnes), India (100K tonnes) and Viet Nam (77K tonnes) were the main suppliers of wrapping papers imports to China, together accounting for 34% of total imports. Canada, Japan, the U.S., Sweden, South Korea, Taiwan (Chinese), Brazil, Indonesia, Malaysia and Thailand lagged somewhat behind, together comprising a further 52%.

In 2020, Brazil featured the highest growth rate in terms of volume of supplies to China. Over the last year, Chinese purchases from Brazil increased from 7K tonnes to 42K tonnes.

Russia and India boosted their supplies to China threefold. Russia increased its exports to China from 41K tonnes in 2019 to 125K tonnes in 2020, while India ramped up its supplies to China from 34K tonnes to 100K tonnes over this period. Viet Nam increased its exports to China by half from 49K tonnes in 2019.

In value terms, Russia ($75M), Japan ($68M) and the U.S. ($58M) appeared to be the largest wrapping papers suppliers to China, together comprising 32% of total imports. Sweden, Taiwan (Chinese), Canada, South Korea, India, Viet Nam, Brazil, Indonesia, Malaysia and Thailand lagged somewhat behind, together comprising a further 47%.

In 2020, the average wrapping papers import price amounted to $703 per tonne, dropping by -24.1% against the previous year. There were significant differences in the average prices amongst the major supplying countries. In 2020, the country with the highest price was Japan ($981 per tonne), while the price for India ($323 per tonne) was amongst the lowest. In 2020, the most notable rate of growth in terms of prices was attained by Taiwan (Chinese), while the prices for the other major suppliers experienced a decline.

Source: IndexBox Platform

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VERY EXCITING TIMES FOR THE PORT OF BALTIMORE

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The Port of Baltimore continues expansion efforts following the completion of successful dredging operations for a second 50-foot-deep container berth at its Seagirt Marine Terminal on April 20. 

This project—supported by a partnership between the Maryland Department of Transportation Maryland Port Administration (MDOT MPA) and Ports America Chesapeake—started in January and will allow the simultaneous handling of two ultra-large ships. 

The 50-foot berth paired with the Howard Street Terminal expansion project will not only increase business opportunities but also grow the region’s workforce, adding more value to the $122.1 million investment. Of this amount, $105 million is from Ports America, $10.5 million from the state, and $6.6 million in federal funding.

The second, deep-container berth project was spearheaded and completed by Corman Kokosing of Annapolis Junction with the help of two dredges—Koko V and Koko VI. Additionally, more than 465,000 cubic yards of sediment were successfully removed by the company’s SN3 unloader barge for reuse in land restoration and more. With this new addition, the port announced the addition of four neo-Panamax cranes to arrive and be operational later this year at Seagirt.

“The Port of Baltimore and its skilled workforce have always played a key role in supporting Maryland’s economy and keeping the state’s supply chain open and reliable,” MDOT Secretary Greg Slater said. “Now, together with our public and private partners, we’re seeing the future of the port take shape. Additional berth capacity and the ability to move cargo on double-stacked rail cars with the Howard Street Tunnel expansion will attract new and expanded business to the port, boost revenue, grow jobs and lead the way in Maryland’s economic recovery.”

The expansion of the region’s Howard Street Terminal aims to improve capacity along the East Coast’s rail lines from Baltimore, pending the final approval by the National Environmental Policy Act. Construction at the 126-year-old terminal is projected to begin at the end of 2021 and is supported by public-private investments between the federal government, Maryland, CSX and others. These developments continue supporting the region’s workforce while increasing state tax revenue and funds for the Transportation Trust Fund.

“We’re moving forward in the Port of Baltimore,” said MDOT MPA Executive Director William P. Doyle. “We appreciate the on-time and on-budget dredging work completed by Maryland-based Corman Kokosing, a great U.S.-flag dredging and marine construction operator. This summer, we’ll welcome four new neo-Panamax cranes and later this year, we’ll break ground on the Howard Street Tunnel project, giving the port and CSX double-stack capability north, south and all the way out to Chicago. These are very exciting times for the Port of Baltimore.”