South China settles first spot LPG deal for Aug import

Chemical News: South China settles first spot LPG deal for Aug import

https://www.chemnet.com Jul 21,2010
A South China-based importer bought on Monday 22,000mt of imported propane for August delivery, said a Singaporean trader. This was the first spot deal for August delivery to South China.

This cargo from a European trading company was traded at US$575-579/mt under CFR terms, expected to reach South China in Aug 10-20, the trader said.
But this deal didn't mean local importers would follow suit and begin to place orders for August imports, an importer in South China pointed out. Among the six active importers in South China, five still have quite abundant stockpiles of imported LPG, and only one has low inventory, the importer explained.
Importers have kept postponing August imports as import margins have been negative or very limited recently, a market source pointed out.

In spite of this, it is possible for some other importers to order August-delivered cargo soon as domestic supply may drop amid refinery maintenance in August, the source said. In addition, these importers' inventories may drop to low levels in the second half of August, he added.

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