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Yahoo
6 days ago
- Business
- Yahoo
US ethane exports to China hit new roadblock with licence requirement
By Siyi Liu and Arathy Somasekhar SINGAPORE/HOUSTON (Reuters) -Chinese purchases of U.S. ethane, a key petrochemical feedstock, face fresh uncertainty after the Commerce Department told exporters to seek licences to export to China, according to trade sources and shipping data. Washington ordered a broad swathe of companies to stop shipping goods, including ethane and butane, to China without a licence and revoked licences already granted to some suppliers, Reuters reported on Wednesday. The move is the latest disruption in Chinese purchases of U.S. ethane, which hit a record of 492,000 barrels per day in 2024, or nearly half of U.S. exports, according to the U.S. Energy Information Administration. Early last month, China increased levies on imports of U.S. goods to 125% but waived the tariff for petrochemical producers who rely on the United States. for almost all their ethane imports. At least two Very Large Gas Carriers were waiting at U.S. ports to load ethane this week while 15 more tankers are headed to, or waiting off, the U.S. Gulf Coast, to load about 284,000 bpd of ethane in June, Kpler data showed. "It's going to be a major issue if all exports are suspended," said a Chinese ethane importer, who sought anonymity because he is not authorised to speak to media. "We are cautiously watching if exporters can obtain new export licences soon." VLGC Pacific Ineos Grenadier was supposed to load ethane for Ineos at Enterprise Products Partners' Morgan's Point terminal at La Porte, Texas, has docked there since last Friday, Kpler and LSEG data showed. Stl Qianjiang is anchored near Energy Transfer's Nederland terminal, due to load ethane for Chinese petrochemical firm Satellite Chemical, the data showed. Enterprise, Energy Transfer and Ineos did not immediately respond to requests for comment outside office hours while Satellite Chemical could not be reached for comment. "The market disruption could be immediate," Julian Renton, an analyst at East Daley Analytics, said in a note. A trade source said Ineos, which also buys ethane for its plants in Europe, may divert its cargo there. In a filing, Enterprise, a top handler of ethane and butane, said it was evaluating its procedures and internal controls and could not determine if it would be able to get a licence. Traders said there may be limited near-term impact on Chinese operators, as they have sufficient stocks. East Daley's Renton said if the restriction holds, Chinese petrochemical plants could face critical feedstock shortfalls, while projects may stall. Chinese petrochemical firms use ethane as a cheaper feedstock alternative to naphtha, while U.S. oil and gas producers count on China to buy their natural gas liquids as domestic supply exceeds demand. Shares of ethane importers Satellite Chemical were down 3.1% on Friday, while Wanhua Chemical stock lost 1.3%.
Business Recorder
30-04-2025
- Business
- Business Recorder
China, Hong Kong stocks little changed ahead of long holiday as trade war hits factories
SHANGHAI: China and Hong Kong stocks were flat on Wednesday, as many traders were reluctant to take fresh positions ahead of the long Labour Day holiday, while data showed new export orders plummeted due to aggressive US tariffs. China stocks inch lower, Hong Kong up slightly Both China's blue-chip CSI300 Index and the Shanghai Composite Index were little changed by the lunch break. Hong Kong's Hang Seng Index rose 0.2%, but is poised to drop 5% in April - the biggest monthly fall in 16 months. China's factory activity contracted at the fastest pace in 16 months in April, reflecting the impact of the US-China trade war, but the survey result also fuelled hopes for stronger government stimulus. 'Government stabilisation efforts will keep growing, and there will be more willingness for listed companies to distribute dividends and buy back shares,' Zheng Gang, strategist at Yingda Securities, wrote. The brokerage recommends high-dividend blue-chips, consumer stocks and tech shares, betting they will benefit from Beijing's policy to boost consumption and support homegrown technologies. China's artificial intelligence (AI) stocks and tech-laden STAR 50 Index rose, after Chinese President Xi Jinping used a visit to Shanghai on Tuesday to push for breakthroughs in AI. Meanwhile, shares of Chinese ethane importers including China Petroleum, Satellite Chemical and Wanhua Chemical rose, after news that China has waived the 125% tariff on ethane imports from the United States imposed earlier this month. But banking shares were among the biggest losers on Wednesday, after China's Big Five lenders reported narrower margins in the first quarter amid a protracted economic slowdown and property crisis. China's stock market will be closed from May 1 until May 5 for the Chinese Labour Day, and will resume trading on Tuesday.
Free Malaysia Today
29-04-2025
- Business
- Free Malaysia Today
China waives tariffs on US ethane imports, say sources
China buys nearly half of US ethane exports. (NurPhoto pic) SINGAPORE : China has waived the 125% tariff on ethane imports from the US imposed earlier this month, two sources with knowledge of the matter said on Tuesday, among a group of products that have been granted exemptions. The move will ease pressure on Chinese firms that import US ethane for petrochemical production as well as provide an outlet for the natural gas liquid, a byproduct of US shale gas production. The sources said the tariff on ethane had been waived in recent days. One of them said the waiver has not been publicly announced. They declined to be named due to the sensitivity of the matter. China's ministry of commerce and customs could not be immediately reached after office hours. Reuters reported last week that some pharmaceutical, aerospace and semiconductor products had also been granted tariff exemptions as Beijing tries to blunt the economic impact of its trade war with the US. China increased its levies on imports of US goods, including ethane, to 125% earlier this month, hitting back at US President Donald Trump's decision to single out the world's number two economy for higher duties. China buys nearly half of US ethane exports, which hit a record of 492,000 barrels per day in 2024, according to the US energy information administration. The EIA expects US ethane exports to increase to 530,000 bpd in 2025 and to 630,000 bpd in 2026. Ethane importers in China include Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical and Wanhua Chemical Group while the key US exporters are Enterprise Products Partners and Energy Transfer.
Yahoo
29-04-2025
- Business
- Yahoo
Exclusive-China waives tariffs on US ethane imports, sources say
SINGAPORE (Reuters) -China has waived the 125% tariff on ethane imports from the United States imposed earlier this month, two sources with knowledge of the matter said on Tuesday. The move will ease pressure on Chinese firms that import U.S. ethane for petrochemical production as well as provide an outlet for the natural gas liquid, a byproduct of U.S. shale gas production. Ethane importers in China include Satellite Chemical, SP Chemicals, Sinopec, Sanjiang Fine Chemical and Wanhua Chemical Group while the key U.S. exporters are Enterprise Products Partners and Energy Transfer. China buys nearly half of U.S. ethane exports, according to the U.S. Energy Information Administration. China increased its levies on imports of U.S. goods, including ethane, to 125% earlier this month, hitting back at U.S. President Donald Trump's decision to single out the world's No.2 economy for higher duties. The sources said the tariff on ethane had been waived in recent days. Beijing has already granted tariff exemptions on some products including pharmaceuticals, microchips and aircraft engines and was asking firms to identify critical goods they need levy-free, Reuters reported on Friday. Sign in to access your portfolio
Reuters
29-04-2025
- Business
- Reuters
Exclusive: China waives tariffs on US ethane imports, sources say
SINGAPORE, April 29 (Reuters) - China has waived the 125% tariff on ethane imports from the United States imposed earlier this month, two sources with knowledge of the matter said on Tuesday. The move will ease pressure on Chinese firms that import U.S. ethane for petrochemical production as well as provide an outlet for the natural gas liquid, a byproduct of U.S. shale gas production. The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. Ethane importers in China include Satellite Chemical ( opens new tab, SP Chemicals, Sinopec ( opens new tab, Sanjiang Fine Chemical ( opens new tab and Wanhua Chemical Group ( opens new tab while the key U.S. exporters are Enterprise Products Partners (EPD.N), opens new tab and Energy Transfer (ET.N), opens new tab. China buys nearly half of U.S. ethane exports, according to the U.S. Energy Information Administration. China increased its levies on imports of U.S. goods, including ethane, to 125% earlier this month, hitting back at U.S. President Donald Trump's decision to single out the world's No.2 economy for higher duties. The sources said the tariff on ethane had been waived in recent days. Beijing has already granted tariff exemptions on some products including pharmaceuticals, microchips and aircraft engines and was asking firms to identify critical goods they need levy-free, Reuters reported on Friday.
