LPG inflows to China, India fall MOM in October: CAS

China and India -- the world's two largest buyers of LPG -- took less LPG in October, with deliveries dropping 5.77% and 2.18% from September's 2.883 million metric tons and 2.201 million mt, respectively, the latest S&P Global Commodities at Sea data showed Nov. 4.

China's LPG inflows in October consisted of 2.225 million mt of propane and 658,000 mt of butane, while India's comprised 1.158 million mt of propane and 1.043 million mt of butane, CAS data showed.

The US remained China's top supplier with 843,000 mt, accounting for 29.24% of China's overall LPG inflows in October. Middle Eastern LPG producers -- led by the UAE and including Qatar, Saudi Arabia, Kuwait, Oman, Bahrain and Iraq -- were India's main LPG suppliers, delivering 2.201 million mt, or 94.46% of its total imports in October, according to CAS data.

Compared with a year ago, the US' October LPG outflows to China fell 45.89% from 1.558 million mt, while China's overall LPG imports rose 2.67% to 2.962 million mt, CAS data showed. India's LPG imports in October rose 21.27% year over year from 1.815 million mt, with Middle Eastern LPG accounting for 99.94% of the country's overall imports.

Platts, part of S&P Global Commodity Insights, reported on Oct. 20 that the US remained China's largest LPG supplier in September, as it was in August, but shipped 6% less volume month over month.

In a Nov. 1 statement, the White House said the US will reduce tariffs on Chinese imports aimed at curbing fentanyl flows by removing 10 percentage points from the cumulative rate, effective Nov. 10, and will maintain the suspension of heightened reciprocal tariffs on Chinese imports until Nov. 10, 2026.

The US will further extend the expiration of certain Section 301 tariff exclusions, currently set to expire on Nov. 29, until Nov. 10, 2026.

China and the US agreement to pause port fees on ships linked to each other's fleets has had a direct impact on the Persian Gulf-Japan VLGC freight rate, which has been rising since the agreement was announced on Oct. 30.

Platts assessed the Persian Gulf-Japan VLGC freight rate at $60.75/mt on Nov. 3, up 15.38% from $52.65/mt on Oct. 30.