LPG prices were mixed in East China this week, rising in Jiangsu province and falling in both Shanghai and Zhejiang province, trade sources in the regions said Friday. Propane-rich imported LPG was heard traded at Yuan 5,900-6,000/mt ($958-975/mt) in East China's Jiangsu province this week, up Yuan 100/mt from Yuan 5,800-5,900/mt last week.
"Sinopec's Yangzi and Jingling refineries were said to have cut their run rates this month due to the upcoming Youth Olympic Games, which may have supported LPG prices in the region," said a trader in Jiangsu.
The second Summer Youth Olympic Games will take place in Nanjing, Jiangsu province, over August 16-28. City officials have ordered a number of industries to close or reduce operating rates before and during the event in a bid to reduce air pollution. Sinopec's 9.5 million mt/year Yangzi refinery shut its 3.5 million mt/year No. 1 crude distillation unit for scheduled maintenance August 1, according to a source close to the refinery.
The refinery offered its domestically produced LPG at Yuan 5,900/mt Friday, up by around Yuan 100/mt from a week earlier.
In addition, market concern over the new tax reporting system appears to be fading, which was seen as supportive for LPG prices, local traders said.
"LPG deep processing plants in Shandong province can still enjoy consumption tax-free policies for their finished products, such as aromatics, when it is used to produce blended gasoline," the second LPG trader in East China said, adding this has encouraged some petrochemical plants that use LPG as feedstock to resume operations.
In contrast, LPG prices edged down in East China's Shanghai and Zhejiang province this week due to increasing supply, local traders said.
Propane-rich imported LPG was heard to have traded at Yuan 5,950-6,050/mt in Zhejiang province this week, down Yuan 100/mt from Yuan 6,050-6,150/mt last week, according to local traders.
Oriental Energy was said to have received 44,000 mt of imported LPG this week, prompting it to lower prices in a bid to sell more cargoes, traders said.
"We have received a call from Oriental Energy asking that we buy more imported LPG this week," said a buyer in the region.
In addition, Sinopec's 16 million mt/year Shanghai Jinshan refinery resumed normal operations this month after partial maintenance, which is expected to increase LPG supply in the local market.
The refinery plans to process 1.3 million mt of crude in August, doubling from 650,000 mt in July, Platts reported earlier.
As a result, domestically produced LPG prices fell Yuan 50-80/mt in Shanghai and Zhejiang province this week, according to local traders.
Sinopec Gaoqiao refinery sold at Yuan 5,900/mt this week, down from Yuan 5,950/mt last week, while Sinopec Zhenhai refinery sold at Yuan 5,950-6,050/mt this week, down from Yuan 6,000-6,100/mt last week.
SOUTH CHINA PRICES RISE DESPITE UPTICK IN IMPORTS
LPG prices in South China rose this week amid bullish sentiment, and despite an increase in the arrival of imported cargoes, local trade sources said Friday.
Several LPG import terminals, including Guangzhou Huakai, Zhuhai New Ocean, Zhuhai Longhua and Dongguan Jovo in the Pearl River Delta, were said to have each received an imported cargo this week, totaling around 80,000 mt.
This is double the 40,000 mt of imports seen last week.
But buying interest was good this week as many buyers believe the impact of the new tax reporting system has faded and prices will rebound in the near term, local traders said.
Propane-rich imported LPG was said to have traded at Yuan 5,950-6,050/mt in South China this week, up Yuan 100/mt from Yuan 5,850-5,950/mt last week, local traders said.
Domestically produced LPG was said to be traded at Yuan 5,750-5,850/mt in South China, up around Yuan 120/mt from last week, they added.
