Nov LPG Import Sees MOM Decline of 23.63%
According to GACC’s data, China’s LPG import volume was about 2,298.6kt in November 2024, down 23.63% MOM and down 10.70% YOY. Meanwhile, China’s LPG export volume totaled 100.7kt, down 15.45% MOM. China’s LPG import volume in November 2024 went down MOM, mainly influenced by downstream demand and import costs.
Nov 2024 China LPG Import
Unit: kt
Source: GACC
As seen from the table above, China’s propane import volume was 1,880kt in November, down 26.41% MOM and down 9.92% YOY. Moreover, the import volume of butane was 390.9kt in November, down 13.23% MOM and down 13.68% YOY. 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 27.6kt, up 489.47% MOM and down 18.22% YOY.
China’s LPG import volume in November 2024 declined MOM. First, the operating rate of the deep-processing industry went down, including butane dehydrogenation unit, PDH unit and light ends crackers. Accordingly, the LPG deep-processing demand weakened notably. Second, China’s LPG import costs remained high, so deep-processing enterprises and importers experienced negative profits, weighing on the operation enthusiasm. Third, the operation enthusiasm of importers weakened in the wake of high import costs. Moreover, most China’s domestic traders consumed inventory, notably dragging down LPG inventory. Overall, the relatively high import costs and limited demand were major factors weighing down LPG import volume in November 2024.
According to China Customs, China imported LPG mainly from the U.S., the U.A.E., Qatar, Oman and Algeria. The imported LPG volume from the U.S. was about 1,143.9kt, ranking first. Hereinto, the import volume of propane was 1,109.8kt, and that of butane was 34.1kt. Meanwhile, China imported 485.4kt of LPG from the U.A.E., including 303.7kt of propane and 181.7kt of butane. Besides, the volume of LPG imported from Qatar was 209.2kt, including 194.6kt of propane and 14.6kt of butane.
Main provinces and cities that imported most of LPG in November 2024 were Shandong, Guangdong, Zhejiang, Jiangsu and Tianjin. Therein, Shandong imported 383.7kt of LPG, ranking first and taking up 16.69% of the total. Meanwhile, LPG import volume in Guangdong and Zhejiang was 349.6kt and 342.5kt, taking up 15.21% and 14.90% of the total respectively. Therein, the LPG import volume in Shandong ranked first but dropped notably, as the deep-processing demand shrank notably.
Nov 2024 China LPG Export
Unit: kt
Source: GACC
In November, China’s LPG export volume totaled 100.7kt, down 18.4kt or 15.45% MOM and up 23.4kt or 30.21% YOY. Therein, the propane export volume was 44kt, down 10.73% MOM and up 38.69% YOY. Meanwhile, the butane export volume was 56.8kt, down 18.77% MOM and up 24.86% YOY. Moreover, there was limited LPG and olefins export. Besides, China’s export volume of liquefied ethylene, propylene, butylene and butadiene was relatively low in November.
In November 2024, China mainly exported LPG to Philippines, Vietnam, Hong Kong of China, Macao of China and Malaysia, and the volume of LPG exported to the above five countries or regions was 95.5kt or so, taking up 94.85% of China’s LPG export volume.
It is estimated that China’s LPG import in December will probably go up. The international LPG supply may be relatively stable, and the Panama Canal is not blocked. Accordingly, the international LPG supply may be ample. Moreover, the demand for LPG may improve. Besides, the LPG inventory at importers is low, and China’s LPG import costs may go down, stimulating the import enthusiasm. Overall, it is estimated that China’s LPG import volume may increase notably in December 2024.
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