China has become the largest consumer of LPG in the world, importing over 20mn t in 2019, and accounting for more than a fifth of global seaborne trade. Chinese LPG imports are forecast to rise by more than a fifth this year, driven by soaring petrochemical demand.
LPG is used as a raw material by petrochemical plants, and a raft of new projects opened in China last year with more scheduled for 2021.
The growth in LPG demand has created the need for an import price that recognises the specific conditions of the Chinese market. As a result, Argus has been working with companies operating in China to develop the CFR (delivered) Ningbo price, published daily in the Argus International LPG report.
To facilitate LPG trade into Ningbo, Argus is simultaneously launching an associated screen on its Argus Open Markets platform, which introduces potential buyers and sellers.
“This new price reflects China’s key and growing role in international LPG markets. We expect that Chinese buyers will use the new assessment when pricing imports,” Argus Media chairman and chief executive Adrian Binks said. “We know there is also demand for a relevant and accurate benchmark to underpin the development of a local derivative market so that Chinese companies can hedge the risk to which they are exposed. We expect that the Ningbo price will perform this role for China.”
About Argus Media
Argus is an independent media organisation with almost 1,100 staff. It is headquartered in London and has 26 offices in the world’s principal commodity trading and production centres. Argus produces price assessments and analysis of international energy and other commodity markets and offers bespoke consulting services and industry-leading conferences.
Companies in 140 countries around the world use Argus data to index physical trade and as benchmarks in financial derivative markets as well as for analysis and planning purposes.
Argus was founded in 1970 and is a privately held UK-registered company. It is owned by employee shareholders, global growth equity firm General Atlantic and Hg, the specialist software and technology services investor.
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