According to the latest news from PetroChina, 14 ultra-deep and ultra-high pressure complex condensate gas fields such as Dina and Tazhong No. 1 have been successfully developed in its Tarim Oilfield, and the largest production base of ultra-deep condensate oil and gas has been built. By 25 th, it has produced 1.066 billion square meters of natural gas, 24.77 million tons of condensate oil and light hydrocarbons, and has become the world leader in the development of deep complex condensate gas fields.

It is reported that condensate oil and gas are rich in aromatic hydrocarbons, light hydrocarbons and other scarce hydrocarbon components, and are urgently needed high-end petrochemical raw materials in the national military and civilian fields. Global condensate oil and gas resources are mainly distributed in Central Asia, Russia and North America, with buried depths ranging from 1500 meters to 4000 meters, belonging to shallow atmospheric pressure gas reservoirs, while China is mostly deep condensate gas reservoirs, with more than 80% of its proved reserves concentrated in the Tarim Basin.

The efficient development of ultra-deep and ultra-high pressure complex condensate reservoirs has no successful experience at home and abroad, which has been regarded as a worldwide problem. Since 2008, PetroChina has continuously set up projects to tackle key problems, innovated the non-equilibrium phase percolation theory of ultra-high pressure condensate gas, solved the difficult problems of gravity overlap prediction and gas channeling control, realized the continuous and stable production of condensate oil, revealed the distribution law of high-yield areas in strong geostress and heterogeneous gas reservoirs, and innovated the high-efficiency development technology and mode of ultra-deep and ultra-high pressure complex condensate gas reservoirs to achieve 590 million tons. Effective utilization of hard-to-recover reserves has overcome the bottlenecks of key engineering technologies such as clean completion, well integrity, high-pressure and long-distance mixed transportation in the development of ultra-deep and ultra-high pressure condensate gas fields, which provides support for industrial scale application.

At present, this set of innovative theory and technology has been popularized in the development of Sinopec and CNOOC condensate gas fields, which has supported the development of overseas Aksai condensate gas reservoir in Kazakhstan, Duvone condensate gas reservoir in North America and high-end technical cooperation of Umshaev offshore project in the United Arab Emirates, and has established China’s leading position in the development of deep complex condensate gas fields in the world.

The China Petroleum Enterprise Association recently released the Blue Paper of China Oil and Gas Industry Development Analysis and Prospect Report (2018-2019) in Beijing. The Blue Book shows that in 2018, China’s oil enterprises’overseas oil and gas rights and interests output exceeded 200 million tons, reaching 201 million tons of oil equivalent. Meanwhile, China’s oil and gas external dependence has reached a double high level, with oil external dependence approaching 70% and natural gas external dependence rising to 45.3%.

China’s overseas oil and gas rights and interests output exceeded 200 million tons

The Blue Book points out that in 2018, China’s oil enterprises’overseas oil and gas rights and interests output exceeded 200 million tons, reaching 201 million tons of oil equivalent, an increase of 3.7% over 2017, including 160 million tons of equity crude oil and 50 billion cubic meters of equity natural gas.

While making great strides in overseas oil and gas business, the three major state-owned oil companies have actively implemented asset optimization strategies, shifting their focus of operation from more focus on scale development to more focus on efficiency. It is not only the diversification of investment fields, but also the diversification of China’s overseas oil and gas investment. The pace of “going out” of private enterprises is gradually accelerating. The data show that there are more than 30 oil and gas enterprises in China, and more than 200 oil and gas projects in more than 50 countries in the Middle East, the Americas, Central Asia and Africa. While promoting the economic and social development of countries along the lines, they also effectively guarantee China’s energy supply security.

In 2018, China’s petroleum enterprises continued to deepen oil and gas cooperation. Large-scale projects such as Kazakhstan’s Kashagan Oilfield, Brazil’s Ribera Oilfield and Yamal LNG in Russia progressed smoothly. They successfully acquired Abu Dhabi’s oil assets, won bids for oil fields in Iraq, Brazil and other countries, signed LNG supply orders with Qatar, and completed modernization and upgrading of two refineries in Kazakhstan. We will soon build the East Sino-Russian Natural Gas Line.

Oil and Gas External Dependence

According to the Blue Book, crude oil processing capacity and apparent oil consumption exceeded 600 million tons, oil dependence was close to 70%, natural gas consumption continued to grow strongly, and external dependence rose to 45.3%.

In 2018, China’s apparent oil consumption reached 648 million tons, an increase of 6.95% over the previous year; domestic crude oil production declined for the third consecutive year to 189 million tons, a decrease of 1.3% compared with the previous year, a decrease of 1.9 percentage points; crude oil processing reached 606 million tons, an increase of 67% compared with the previous year; refined oil production reached 360 million tons, an increase of 36% and net export of refined oil re-innovated. It reached 46.08 million tons, an increase of 12.8% compared with the previous year.

In 2018, China’s natural gas consumption continued to maintain strong growth. After China became the world’s largest importer of crude oil in 2017, it surpassed Japan in 2018 and became the world’s largest importer of natural gas. The net import of crude oil reached 460 million tons in the whole year, an increase of 10.9% compared with the previous year, and the dependence on oil increased to 69.8%. The import of natural gas reached 90.385 million tons, an increase of 31.9% compared with the previous year, and the dependence on oil increased to 45.3%. It is estimated that in 2019, China will import 143 billion cubic meters of natural gas and increase its dependence on natural gas to 46.4%.

In the downstream area, in 2018, China’s new refining energy expansion momentum is strong, the speed and extent of backward capacity elimination is not as expected, the crude oil processing capacity increased by 22.25 million tons per year, exceeding 50% of the global net increase capacity, the total refining energy increased to 830 million tons per year, and the average operating rate of national refineries was 72.9%, the lowest in the world. It is expected that in 2019, with the successive production of large-scale local private refining and chemical projects, China’s crude oil processing capacity will increase by 32 million tons per year and its surplus capacity will reach 120 million tons per year.

The Game of Global Oil and Gas Order Reconstruction enters a new stage

Influenced by supply and demand changes in the world oil market and geopolitical tensions, international oil prices show a slow upward trend. According to the Blue Book, the momentum of world economic growth has weakened, the game of restructuring the global oil and gas order has entered a new stage, and the international oil price has shown a broad fluctuating trend.

In 2018, the growth rate of world GDP was 3.7% in terms of purchasing power parity (PPP) and 3.2% in terms of market exchange rate. The growth rate was the same as that of the previous year, but the momentum of growth began to weaken and the possibility of future downward growth increased. Brent and WTI crude oil futures averaged 71.69 US dollars per barrel and 64.90 US dollars per barrel, up 31% and 27.6% year-on-year respectively, driving the overall recovery of the oil and gas industry. In 2018, the United States became the world’s largest producer of oil and gas. With the rapid growth of oil and gas exports, its influence on the global oil and gas market has increased significantly.

In 2018, the world oil and gas market as a whole showed a recovery trend, with investment in exploration and development increased by 5% to 472 billion US dollars, global oil supply increased to 99 million barrels per day, oil consumption increased by 1.58% compared with the same period last year, global oil and gas production increased by 1.7% and 4.5% respectively, compared with the previous year, and oil and gas production in North America increased by 1.7% and 4.5% respectively. Compared with the previous year, it increased by 12.6% and 9.1% respectively, which is the main area of oil and gas production growth in the world.

In 2018, global natural gas consumption was 3.86 trillion cubic meters, up 5.3% from the previous year, 2.3 times the average growth rate in the past five years. Global trade in natural gas is 1.21 trillion cubic meters, an increase of 7.1% compared with the previous year, of which LNG trade is 326 million tons, an increase of 9% compared with the previous year, twice the increase of pipeline gas. LNG exports in the United States totaled 21.15 million tons, up 63% year-on-year. With the rapid growth of LNG spot market, the process of natural gas market globalization is accelerating, and consumers are more selective.

The Blue Book predicts that in 2018, the competition pattern of world petroleum refining industry will further deepen, the refining capacity in Asia will decline, the profits in European refining market will be low, and the start-up rate and processing capacity of American refineries will increase slightly. Looking forward to 2019, the downward pressure of international oil prices is great, global demand for LNG is increasing day by day, spot LNG prices will continue to climb, the expansion rate of world refining capacity will slow down, and the industrial center will continue to move eastward.

Japan’s oil refiners are expected to stop importing crude oil from April because of U.S. sanctions on Iranian crude oil, Kyodo News Agency reported on March 22. But he looked forward to the negotiations between the Japanese and American governments, hoping to continue importing Iranian crude oil.

In November 2018, the United States launched an embargo on Iranian crude oil production, but excluded some countries, such as Japan, from the application, and granted a limited exemption in early May this year. Yuega said it was “not sure whether the exemption would last” and pointed out that it would be difficult to transport from April if the time required for transportation and completion of the transaction were taken into account.

Reported that Japan’s refiners are prepared to replace procurement from other oil producing countries, is not expected to affect the stability of supply. For the crude oil market that affects the price of gasoline, Japanese media analysis is not likely to cause a sharp rise in the price of crude oil due to the supply capacity of other major oil-producing countries.

Yuegang said: “Whether the exemption can continue depends on the idea of President Trump, Sino-US trade frictions and the situation of oil-producing countries will have a complex impact on their judgment. We can only pay attention to it.

In July 2015, Iran reached a comprehensive agreement on the Iranian nuclear issue with the six countries on the Iranian nuclear issue (the United States, Britain, France, Russia, China and Germany). According to the agreement, Iran promises to limit its nuclear program and the international community will lift sanctions against Iran.

In May 2018, President Trump announced that the United States would withdraw from the Iranian nuclear agreement. In August, the United States restarted a series of non-energy sanctions on Iran’s finance, metals, minerals and automobiles, and said it would restart the remaining sanctions in November. Iran strongly condemns the U.S. sanctions decision.

On November 5 last year, the United States formally imposed what the Trump administration called the “toughest sanctions ever imposed” on Iran. But U.S. Secretary of State Pompeo said on the same day that eight countries or regions in China, India, Greece, Japan, Turkey, Taiwan, Italy and South Korea were granted temporary exemptions for Iranian crude oil imports.

Yesterday, the overall rebound of PVC in domestic PVC market will continue to restrict the price of polyolefins to rise due to high inventory. V1905 futures continued to rise high, falling after breaking the 40-day and 60-day average. The overall rebound of shrinking PVC will continue to restrict the upstream and downward warehouse closing of polyolefin. From the perspective of PVC enterprises, some of the enterprises in different regions have risen sharply, and some of the overall rebound up to 200 PVC will continue to be restricted by high inventory. The overall rebound of PVC will continue to be restricted by high inventory. Others have not yet introduced a new comprehensive rebound of PVC will continue to be restricted by high inventory, and the overall rebound of PVC will continue to be restricted by high inventory. Olefin ascending measures. From the spot market point of view, the overall rebound of PVC in the main markets will continue to be high inventory, which will restrict the upward trend of polyolefins. In addition to some factories, the overall rebound of PVC in eastern and southern China will continue to be high inventory, which will restrict the upward trend of polyolefins. Especially, the overall rebound of low PVC will continue to be high inventory, which will restrict the upward trend of polyolefins. From the downstream products enterprises’point of view, the inquiry was good at the beginning of the week. Some of the enterprises seeking low PVC rebound will continue to restrict the moderate replenishment of polyolefin upstream due to high inventory. However, there is a certain queuing phenomenon in the supply of polyolefin, and there is an embarrassing situation in the market where there is no goods to be delivered. At present, the overall rebound of mainstream PVC of calcium carbide process 5 will continue to be restricted by high inventory. The overall rebound of polyolefin will continue to be restricted by high inventory. The overall rebound of polyolefin/PVC will continue to be restricted by high inventory. The overall rebound of ethylene material mainstream reference 6600-7050 PVC will continue to be restricted by high inventory. The overall rebound of polyolefin/PVC will continue to be restricted by high inventory. Up and down of polyolefin, the overall rebound of high-type supply PVC will continue to restrict the overall rebound of 100-150 PVC on polyolefin, and will continue to restrict the overall rebound of polyolefin / PVC on polyolefin on high inventory will continue to restrict the overall rebound of polyolefin on polyolefin.

It is anticipated that the domestic PVC market will maintain a high level of consolidation today, and individual enterprises will have an upward operation. It is anticipated that the overall rebound of 30-50 PVC will continue to be restricted by high inventory and the overall rebound of polyolefin/PVC will continue to be restricted by high inventory.

Productive factors: individual downstream enterprises start-up load drop or temporary stop, but not affect the demand for calcium carbide, calcium carbide overall supply shortage, multi-underground calcium carbide procurement of PVC overall rebound will continue to restrict the high inventory of polyolefin up to achieve 100 PVC overall rebound will continue to restrict the high inventory of polyolefin up/PVC overall rebound will continue to restrict the stock of polyolefin up-rise; PVC enterprises in Shandong area are booming, some enterprises in northwest area are waiting for the introduction of new PVC comprehensive rebound will continue to restrict polyolefin upstream with high inventory; businessmen are still bullish on the future market, some have a certain mentality of reluctance to sell; some PVC enterprises have been overhauled in the near future, the shortage of PVC enterprises is difficult to alleviate in the short term.

The negative factors: the overall rebound of PVC in social stocks will continue to be high, which will restrict the rise of polyolefins. There are more arrivals in East China and obvious inventory pressure. Although V1905 received red yesterday, the momentum of increase was weakened, some funds profit left the market, and many long-term funds closed in the day. The overall rebound of PVC in downstream products enterprises will continue to be high, which will restrict the initial rise of polyolefins. Most of the period has replenishment operation, the overall rebound of high PVC market will continue to restrict the high inventory of polyolefin upstream trading resistance highlighted.

Other factors: changes in business mentality.

According to statistics provided by the General Administration of Customs, in February 2019, China imported 8404.44 tons of titanium dioxide, a decrease of 2.81% and 32.43% year-on-year; imported 20842.34 tons in January-February, a decrease of 27.6% year-on-year; exported 64629.84 tons of titanium dioxide in February 2019, a decrease of 7.86% and 7.57% year-on-year; and exported 134556.59 tons in January-February, a decrease of 3.37% year-on-year.

Wang Shouwen, Vice Minister of Commerce and Deputy Representative of International Trade Negotiations in 2019, in response to “whether China accepts progressive tariff cancellation as part of the agreement”, pointed out that the heads of state of China and the United States have reached an important consensus, and established the principle and direction of abolishing all the tariffs imposed on each other. Any implementation mechanism must be bidirectional, fair and equal.

If all of the above are achieved, the export of titanium dioxide from China to the United States and even to the Americas will be substantially promoted.

According to the data reported by Yan Tieyun, the total export volume of China’s titanium dioxide to the United States in 2017 is about 46.2 million tons, accounting for 5.6% of the total export volume; the total export volume of China’s titanium dioxide to the United States in 2018 is about 51.7 million tons, accounting for 5.7% of the total export volume, an increase of 11.9% over 2017.

Due to the abnormal level of US tariffs, titanium dioxide in China has lost its original price advantage, and the first choice of American users has gradually become the second and third choice. Even so, the export of titanium dioxide to the United States is still growing. China’s titanium dioxide production capacity and output keep increasing, some of the output restrained and digested by the United States is gradually replaced by high-speed developing countries such as Southeast Asia. In 2018, China’s total exports of titanium dioxide to the United States are not open-ended growth, and we can expect a large-scale demand in the future.

Yan Titanium industry analyst Yang Xun believes that if tariffs return to a reasonable height, China’s titanium dioxide exports will return to the dominant price range, which is more conducive to the U.S. and the surrounding countries and regions with the U.S. as the center of the trade environment. The high cost-performance ratio of the international market may help us find more channels and users, which will fuel the profit and bullish market in the beginning of 2019.

With OPEC crude oil production declining by 560,000 barrels per day to 30.5 million barrels per day in February, international oil prices began to rebound gradually. WTI crude oil prices broke 57 dollars a barrel again. US President Trump once again called on OPEC to relax its efforts to raise crude oil prices. The contradiction between OPEC+and the United States about oil price is intensifying day by day.

U.S. Oil Faces Internal and Foreign Troubles with Increasing Production

In October 2018, the U.S. SUNRISE crude oil pipeline was put into operation, and the bottleneck of U.S. crude oil transportation has been improved to a certain extent. As a result, U.S. crude oil production continues to increase. Since 2019, U.S. crude oil production has risen steadily, reaching an all-time high of 12.1 million barrels per day in the week of February 22.

However, at this stage, the U.S. crude oil market still faces two problems: one is oil mismatch. Shale oil, as the main source of increasing crude oil production in the United States, produces light crude oil, while medium sulfur crude oil is still the main refinery equipment in the United States. Although heavy and light crude oil can be produced by mixing, the United States still needs to import heavy crude oil to meet domestic demand. Second, capital recovery. High attenuation rate is a major feature of shale oil production. Oil companies mostly maintain production through new drilling, and the capital is mainly supported by Wall Street financing. The book Saudi America by American journalist Bethany McLean reveals the fact that most of the oil companies involved in shale oil exploitation are trapped in increasing oil production, but their cash flow is always negative. Although some large oil companies made profits in 2018, the shale oil industry as a whole still needs to expand its market to maintain its current level.

Since the United States began to export large-scale crude oil in 2015, “energy independence” has become the mainstream trend of the United States. Although the net import of crude oil in the United States has been decreasing, the heavy crude oil in the United States still needs to rely on Canada, Saudi Arabia, Iraq, Venezuela, Mexico and other countries. The dramatic reduction of Venezuela’s crude oil production has also made it difficult for the United States to import heavy crude oil. Meanwhile, Saudi Arabia has cut its heavy crude oil supply to the United States. The decreasing supply of heavy crude oil has further stimulated the sensitivity of the United States to high oil prices. On the other hand, under the circumstances that it is difficult for the United States to adjust the demand of refineries on a large scale in a short period of time, the output of light crude oil is increasing and difficult to digest. As a result, American crude oil is facing the external problems of importing large quantities of heavy crude oil and the internal worries of excess domestic light crude oil.

As a net importer of crude oil, the United States wants to expand its market share in the global crude oil market, but oil prices and transportation costs are major constraints. Therefore, the United States hopes that oil prices will fall further, which will not only alleviate the pressure of domestic oil mismatches, but also bring back funds for oil companies to maintain production, and save costs for purchasing heavy crude oil, so as to obtain greater operating space.

Resolutely Reduce Production and Guarantee Financial Security in Saudi Arabia

As the largest producer among OPEC member countries, Brent oil prices of $65 per barrel at this stage are also unacceptable. Saudi Arabia’s budget increased by 7% to 1.106 trillion rials in 2019, equivalent to about $295 billion. According to the report, in order to maintain the deficit at $35 billion, Saudi Arabia expects to produce an average of 10.2 million barrels per day in 2019 at a price of $80 per barrel. But now production and oil prices are far below Saudi expectations. Saudi Arabia has cut production to 9.8 million barrels per day ahead of schedule in an attempt to further rebound oil prices under the OPEC+cut-off agreement.

In order to maintain oil prices and exports, Saudi Arabia has also made large-scale overseas investment. In February, China Weapons and Panjin Industries signed an agreement with Saudi Arabia and the United States to establish Huajin Ami Petrochemical Co., Ltd. with a total investment of over 69.5 billion yuan. It is expected to start production in 2024. Saudi Arabia is trying to ensure its future crude oil exports by establishing joint refineries overseas. Faced with huge fiscal deficits, Saudi Arabia urgently needs oil prices to rise to more than $80 per barrel, which is also the main reason why it actively calls for OPEC + to further reduce production.

Opinions differ. Russia is hard to choose.

Russia’s attitude towards reducing production is somewhat contradictory. From the repeated discussions on output reduction at OPEC + meeting to the failure of the reduction to reach the agreed scale, all kinds of signs indicate that Russia has been hesitant about the reduction. The president of Rosneft, a Russian oil company, is a typical example of his unwillingness to cut production. He told Russian President Putin that OPEC and non-OPEC production cuts were “in the hands” of the United States. Russia is facing a decline in oil market share. The OPEC agreement is a strategic threat to Russia’s oil industry. The Russian government is more supportive of production cuts. Russian energy minister Nowak said on March 4 that Russia plans to speed up oil production reduction this month and will reduce production by 228,000 barrels per day at the end of this month compared with last October. Putin also made it clear that he believed OPEC + production reduction agreement would help stabilize the oil market.

The core of Russia’s internal disagreement can be attributed to the government’s desire to consolidate its alliance with OPEC, while enterprises are worried about their declining market share. In the face of the fierce US, heating with OPEC is an important means to maintain its market position, but the decline in market share caused by the reduction of production will also cause irreversible harm. Faced with this dilemma, Russia’s attitude will largely affect the future direction of oil market development.

In short, for their own core interests, the United States, Saudi Arabia and Russia, the three major oil producers, have very different expectations for production, of which the contradiction between the United States and Saudi Arabia is almost irreconcilable. As the biggest variable, whether Russia will resolutely reduce production or delay in the future will be the key factor to eventually leverage the oil market. We believe that OPEC + will not discuss further production cuts until the June meeting, before which Russia may continue to maintain a state of “inadequate production cuts”. As a result, WTI oil prices will remain between $53 and $62 a barrel in the next three months, and Brent oil prices will remain between $64 and $72 a barrel.

On March 19, it was reported that the Korean government, while lowering sales tax, would substantially reduce the cost of importing LNG, making its tax amount lower than that of coal, in order to encourage people to switch to cleaner fuels in order to face the worsening air pollution.

Korea’s Ministry of Trade, Industry and Energy has proposed to reduce the surcharge on LNG imported fuel for power generation from the current 24.2 won ($0.02) per kilogram to 3.8 won. The revised tax law will come into force on April 1.

This is expected to boost the use of liquefied natural gas. So far, LNG taxation has been higher than fossil fuels.

Because of its low emission, the environmental cost of LNG is half that of bituminous coal. But the total tax, including special consumption tax, import surcharge tax and customs duty, is 91.4 won, more than twice the 36 won of bituminous coal.

After the special tax exemption in July last year, the reduction of import surcharge of liquefied natural gas will raise the total levy of liquefied natural gas from 23 won to 91.4 won, while the Levy of power coal will rise from 36 won to 46 won.

The government estimates that the new tax will help reduce 427 tons of ultrafine particulate matter per year. Ultrafine particulates are small dust particles with diameter less than 2.5 microns, which are directly absorbed into the blood and pose serious health risks.

LNG used in thermal power plants or cogeneration plants will enjoy full tax rebate, because its energy efficiency is significantly improved, about 30 percentage points higher than that of traditional power plants. From April 1, enterprises with installed capacity of less than 100 MW will reduce tax by 6.9%.

At present, 40% of South Korea’s electricity supply depends on coal. Liquefied natural gas accounts for less than 20%. Nuclear reactors account for 30% and renewable energy sources such as solar, wind and fuel cells account for about 10%.

In the next three years, China’s liquefied petroleum gas (LPG) will show double growth in imports and demand.

On March 21, the 24th China LPG International Conference, co-sponsored by the Guangdong Oil and Gas Chamber of Commerce and the Guangdong Petroleum Society, was held in Suzhou.

“China’s LPG imports are expected to increase to 23-25 million tons in 2021.” Yan Jiasheng, vice president of Donghua Energy Co., Ltd. (002221.SZ), China’s largest LPG importer and distributor, said at the meeting that China’s LPG demand will increase steadily in the next three years with the promotion of the Sixth National Standard Petroleum and the centralized commissioning of the propane dehydrogenation (PDH) cracking unit.

According to his forecast, China’s LPG imports will increase by 20% to 30% in 2021 compared with 2018.

In 2018, as the world’s largest LPG importer, China’s LPG import volume was about 19.16 million tons, up 11.5% year-on-year, accounting for more than 1/3 of the total apparent consumption of LPG.

According to Zhongyu data, in 2018, China produced about 38,005,000 tons of LPG, up 11.2% year-on-year.

LPG, also known as liquefied gas, is a kind of gas that volatilizes during the exploitation of oil, natural gas or the extraction of crude oil. It is a mixture of propane and butane, usually accompanied by a small amount of propylene and butene.

LPG is mainly used for civil fuels, alkane cracking, PDH to propylene and so on. The canned gas used in rural areas and towns is usually LPG.

“At present, the import price of LPG in China is higher than that in other parts of Northeast Asia.” He Yanyu, head of pricing for global NGL (natural gas liquids) at IHS Markit, a global industry information service provider, said that in recent years, the correlation between LPG and global crude oil price fluctuations has been increasing, and the attribute of LPG as a “by-product” of crude oil has been strengthened.

In 2018, Saudi Arabia’s propane exports to China were priced at $540 per ton, an increase of 14.9 per cent over the same period last year.

“The sanctions imposed on Iran will lead to the reduction of LPG exports in the Middle East and a global pattern dominated by LPG supply in North America.” Emma Lamb, chief consultant of NGL Strategy, said that the Asian market was the dominant market for LPG consumption.

In 2018, global LPG supply was 300 million tons, an increase of 3.7% year on year. Depending on abundant crude oil production, the Middle East is the second largest LPG export area after North America.

“In 2019, as the world’s largest exporter of LPG, the impact of the United States on the price and volume of LPG trade will be strengthened day by day.” He Yanyu said that influenced by China’s trade tariff policy with the United States, China has reduced its imports of LPG from the United States. To meet demand, Chinese buyers will choose to buy more Middle East spot goods.

On August 23, 2018, China began imposing a 25% tariff on imports of liquefied gas from the United States.

“The persistence of tariff collection has prompted the collection of LPG’s'exchangeable’market.” Yan Jiasheng said that by exchanging contracts, Chinese LPG importers “transitioned” their original LPG contracts with the United States to other Asian countries such as Japan and South Korea, and sought to buy more LPG from the Middle East, Australia and West Africa.

Demand for polystyrene foam plastics (EPS) in Asia will remain weak in the near future, as China, a key market, stagnates seasonally with sufficient supply.

But because of production losses, regional producers have pushed up prices. Since the end of January, the difference between EPS and styrene monomers has been below the break-even point of $180 per ton.

According to ICIS data, spot EPS prices in China rose further on March 15 compared with last week, with CFR quoting $1,250-1,260 per ton.

Due to the seasonal stagnation of downstream construction industry, China’s demand is particularly tepid, which may keep EPS production at a low level in the coming weeks.

Demand in Southeast Asia is relatively good, and Asian suppliers prefer to sell in the region.

At present, the inventory level of Chinese terminal customers is good, and the EPS supply in the Chinese market is sufficient to meet the demand. It is reported that the operating rate of Chinese manufacturers is about 70%.

ICIS data showed that the EPS premium to styrene monomers fell to a new low of $160 per ton in the week ending March 8, and Asian manufacturers kept operating interest rates low to curb losses.