The ARGUS CFR Ningbo Index (propane and/or butane)
China imported more than 20.5mn t of LPG last year, making it the world’s largest importer of the fuel, and this market is expected to continue growing this year. With China importing LPG from a range of suppliers, including the Middle East, the US, Australia and Africa, Argus will launch the CFR Ningbo Index to provide a truly representative Chinese delivered import price.
Argus has also worked with the industry to develop appropriate terms and conditions for a standard supply contract, which can be used when negotiating deals to import LPG into a variety of Chinese ports. The contract can be accessed here.
Advantages of the ARGUS CFR Ningbo Index
The CFR Ningbo Index will meet growing demand for a price that accurately represents conditions in the Chinese market. Argus has worked with companies operating in China to develop the CFR (delivered) Ningbo price, which is published daily in the Argus International LPG report.
- The Argus CFR Ningbo Index is based on 46,000t propane and/or butane refrigerated cargoes.
- The index is based on a wide range of information, including bids and offers, transactions, informed market views and the performance of other related markets.
- All bids, offers and deals to be included in the Argus CFR Ningbo Index are to conform to Argus CFR Ningbo Contract terms.
- The index assessment is for cargoes delivered to destination ports 25-40 days forward from the date of assessment.
Users of the ARGUS CFR Ningbo Index
Clients will buy and sell LPG priced against the Argus CFR Ningbo Index, plus/minus a differential. The Argus CFR Ningbo Index will be used by Chinese importers, trading firms and international producers selling on a delivered basis into China. Chinese importers will also resell LPG to Chinese wholesalers and retailers using the Argus CFR Ningbo Index.