FLORIDA - (Hellenic Shipping) - Iran’s LPG exports are set to stay near two-year peaks of around 500,000 mt in July and August, meeting China’s voracious appetite for cheaper petrochemical feedstock given the increase in the number of its propane dehydrogenation plants, trade sources said.
The high volumes, which some sources estimate could exceed 500,000 mt, are expected to last through the end of 2021, driven by the increase in Iran’s LPG production and demand, sources said.
A Chinese source said more Iranian LPG was shipped into China this year, which could be due to the grade’s competitive price.
Iranian cargoes were heard sold at discounts deeper than $20/mt versus other Middle Eastern cargoes, which attracted buying interest, the source said. Others said the discounts were as steep as $30/mt. The previous round of Western sanctions in 2012 saw Chinese buyers buying Iranian cargoes at hefty $40-$50/mt discounts.
According to data intelligence company Kpler, China was the largest buyer of Iranian LPG in June at 464,000 mt, or 95% of its total exports, with small amounts shipped to Pakistan and Bangladesh.
A trade source said the three countries are the only lifters of Iranian LPG.