In the first 5 months, China Japan and Korea have received 14.27 million tonnes of corn from the United States, which takes up 62% of the three economies' total imports.
US corn arrived at CJK during Jan- May
Japan did 5.5 million tonnes while its total imports declined to 6.3 million tonnes from previous year 6.68 million tonnes.
Korea imported 4.87 million tonnes of corn during the first 5 months 2020, but only 0.79 million tonnes from the Unites States. This year, Korean's crazy buy from the US reached 2.09 million tonnes, a jump of 164%, making the country total imports to 5.03 million tonnes.
China, encouraged by the Phase I of Sino-US trade agreement, received 6.67 million tonnes of corn from the US, while last year it only bought 1300 tonnes. The whole country imported 11.73 million tonnes of corn from all sources due to expanding swine feeding demand, a surprising sharp jump to all.
US corn share to CJK imports (aggregate)
CJK total corn imports during Jan-May
In total, additional 9.4 million tonnes of American corn reached these Far Eastern economies in the first 5 months compared with same period of last year. Since 2017, US supplies to these three countries declined from 79% of total imports to 34% in 2020, we are happy to see it jump back to 62% this year, while the longer distance gives more ton-miles.
From the US perspective, the States sold extra 8.43 million tonnes of corn to the rest of the world in the first 4 months (we are still waiting for May data) making the total exports to 30.0828 million tonnes (21.6553 million for 2020), while 49% of them (14.825 million tonnes) with destinations of China, Japan and Korea.
China's corn ton-miles have been growing sharply. Giving consideration of the main sources of origin, Ukraine and the United States, estimates based on customs houses stats show, the first 5 months ton-miles are almost five times of that 2020, making the total ton-miles to 108.98 billions, the added ton-miles could be translated into 145 shipments of VLOCs round voyages Port Hedland-China.
USA, Ukraine and Russia accounted for more than 96% of China's imports over the years.
Ton-miles increment
Ukraine tone-miles and the sharp increase of USA ton-miles in 2021.
Apart from the three major buyers, Vietnam is expanding its corn imports from Brazil, Argentine, India and South Africa etc. In the first 5 months, Vietnam unloaded 4.374 million tonnes of corn, representing a growth of 37% compared with same period of last year. Again, Vietnam chooses to buy most of its products from as far as Argentine and Brazil, which take up 68% market share this year.
Asian countries will be very active on the agri products market which give more opportunities to dry bulk shipping.
Source: Simon Young
The opinions expressed herein are the author's and not necessarily those of The Xinde Marine News.
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