Chinese plastics plants that buy liquefied petroleum gas are turning to the Middle East to replace tariff-hit imports from the US, disrupting global flows and reviving moribund freight rates.
The LPG buyers, seeking to swap US cargoes bought earlier with alternatives, have found that Persian Gulf producers including Saudi Aramco are able to help with those requests, according to traders.
As many as seven supertankers — or very-large gas carriers — carrying US LPG and set to arrive in China in May and June will now head to India and Southeast Asia, the traders said, asking not to be named as they’re not authorized to speak publicly. In exchange, Middle Eastern shipments meant for those buyers will be supplied to end-users in China.
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