Argus Ethane cfr China
Giving clearer insight into delivered costs and feedstock economics for ethylene producers
Overview
China’s appetite for US‑origin ethane is expanding rapidly as new petrochemical investments come online. To support the growing spot trade in ethane cargoes, Argus has launched a delivered (CFR) ethane price for China. This assessment captures the value of US ethane feedstock delivered to Chinese ports by incorporating Argus’ Mont Belvieu EPC ethane prices, along with terminal fees and freight costs.
The new CFR China ethane assessment provides market participants with a clearer view of competitive feedstock economics for ethylene production. The assessment is available in the Argus International LPG daily report.
Price assessment details
What is the Argus CFR China Ethane Price Assessment?
The Argus CFR China ethane price assessment responds to strong demand for a transparent delivered price that reflects the emerging spot trade of US ethane into China. As China expands its ethane‑based cracking capacity, timely and representative pricing is becoming increasingly important for buyers, sellers, and analysts.
The assessment reflects refrigerated ethane cargoes of 11,700 t or larger delivered into key eastern Chinese ports. It incorporates Argus’ daily forward‑month EPC ethane assessments at Mont Belvieu, Texas, along with terminal fees and handy‑sized freight rates for shipments loading 30–45 days forward.
Delivered values for China are published daily in Argus International LPG, alongside broader market analysis, commentary, and pricing for related NGL and feedstock markets.
How Is This Price Assessed?
Argus calculates the delivered CFR China ethane price using:
- Daily forward‑month EPC ethane assessments at Mont Belvieu, Texas
- Market intelligence from traders, terminal operators, and brokers
- Estimated US Gulf coast terminal fees for handy‑sized ethane cargoes
- Handy‑sized freight rates for delivery into China
This methodology results in a US FOB ethane value, which is then combined with freight to determine a delivered spot cost for China 60–75 days from the assessment date.
If no firm bids or offers are available, Argus assesses a market‑led delivered range based on its regular survey of informed market participants.
How Can These Prices Be Used?
In the early stages of the developing ethane spot market, this assessment provides:
- A comparative feedstock benchmark versus propane or naphtha for Chinese ethylene producers
- A tool for assessing spot import viability based on US–Asia arbitrage
- A potential risk‑management or hedging instrument as the market matures
- Additional insight for analysts evaluating ethylene margins and feedstock competitiveness in China
As spot trade grows, the delivered CFR China ethane assessment will increasingly support commercial decision‑making across trading, procurement, and strategic planning.
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