Jun LPG Import Sees M-O-M Rise of 5.96%
ccording to GACC’s data, China’s LPG import volume was about 3,395.6kt in June 2024, up 5.96% M-O-M and up 2.86% Y-O-Y. Meanwhile, China’s LPG export volume totaled 114.3kt, up 57.16% M-O-M. China’s LPG import volume in June 2024 went up M-O-M, mainly influenced by China’s domestic demand.
Jun 2024 China LPG Import
As seen from the table above, China’s propane import volume was 2,744.5kt in June, up 13.47% M-O-M and up 12.23% Y-O-Y. Moreover, the import volume of butane was 606.9kt in June, down 18.76% M-O-M and down 23.22% Y-O-Y. Meanwhile, China’s import volume of other LPG and olefins was relatively low. Besides, China’s import volume of liquefied ethylene, propylene, butylene and butadiene was 43kt, up 13.29% M-O-M and down 34.16% Y-O-Y.
China’s LPG import volume in June 2024 increased M-O-M. First, the operating rate of China’s LPG deep-processing industry remained high. Therein, the operating rate of the PDH industry reached 78.10% in June 2024, down 3.40% M-O-M. Accordingly, the propane consumption from the PDH industry hit a two-year high level. Moreover, new PDH units in Shandong came on stream, lifting China’s LPG imports. Second, the overall LPG port inventory was relatively at the beginning of June. According to SCI’s data, China’s LPG port inventory dropped below 55% in early June, down 5% from early May and supporting China’s LPG imports.
According to China Customs, China imported LPG mainly from the U.S., the U.A.E., Oman, Qatar and Australia. The imported LPG volume from the U.S. was about 1,620.3kt, ranking first. Hereinto, the import volume of propane was 1,530.24kt. Meanwhile, China imported 706.1kt of LPG from the U.A.E., including 488.8kt of propane and 217.3kt of butane. Besides, volume of LPG imported from Oman was 260.3kt, including 184kt of propane and 76.3kt of butane.
Main provinces and cities that imported most of LPG in June 2024 were Shandong, Zhejiang, Guangdong, Fujian and Shanghai. Therein, Shandong imported 807.2kt of LPG, ranking first and taking up 23.77% of the total. Meanwhile, LPG import volume in Zhejiang and Guangdong was 611.6kt and 411.3kt, taking up 18.01% and 12.11% of the total respectively. Therein, the LPG import volume in Shandong ranked first, as Jinneng Chemical (Qingdao) stocked up in advance, lifting the overall LPG imports.
Jun 2024 China LPG Export
In June, China’s LPG export volume totaled 114.3kt, up 57.16% M-O-M and up 45.3kt or 65.64% Y-O-Y. Therein, the propane export volume was 48.1kt, up 58.24% M-O-M and up 79.16% Y-O-Y. Meanwhile, the butane export volume was 66.1kt, up 56.12% M-O-M and up 57.65% Y-O-Y. Moreover, there were few LPG and olefins exports. Besides, China’s export volume of liquefied ethylene, propylene, butylene and butadiene was zero in June.
In June 2024, China mainly exported LPG to Philippines, Vietnam, Hong Kong of China, Malaysia and Cambodia, and the volume of LPG exported to the above five countries or regions was 106.3kt or so, taking up 93.00% of China’s LPG export volume.
It is estimated that China’s LPG import in July will probably hover at a high level. As for the deep-processing industry, the operating rate of the LPG deep-processing industry may remain high, as the phase II unit at Jinneng Chemical (Qingdao) may run steadily. As of early July 2024, China’s PDH capacity totaled 20.67 million mt/a, so the deep-processing capacity expansion gave strong support to China’s LPG demand, facilitating China’s LPG imports. Accordingly, it is estimated that China’s LPG import volume may notch a new high in July 2024. Meanwhile, China’s LPG export volume in July may shrink from June. With LPG import cost increments, the re-export arbitrage may gradually narrow, dragging down the LPG exports.
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