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Yahoo
16-07-2025
- Business
- Yahoo
New plants, US trade worries to drive China's 2025 naphtha imports to record
By Mohi Narayan and Sam Li NEW DELHI/BEIJING (Reuters) -China's naphtha imports will hit record levels this year as new plants and caution over U.S. propane and ethane purchases will drive demand and support refiners' margins for the petrochemical feedstock, analysts and traders said. Cracker operators in the world's largest petrochemical producer, which pivoted in recent years to cheaper U.S. propane and ethane feedstock, are switching some demand back to naphtha after being ensnared in the U.S.-China trade war that disrupted their U.S. supplies, the sources said. The need to diversify supplies and to meet demand from new plants will drive naphtha imports to an all-time high of 16 million to 17 million metric tons (144 million to 153 million barrels) this year, consultancies Rystad Energy and FGE said. JLC pegs 2025 imports at about 15 million tons. China imported about 12 million tons in 2024, official data showed. "With issues in imports of ethane and propane, there is a trust factor that has come into play when it comes to U.S. cargoes," said Pankaj Srivastava, senior vice president, commodity markets at Rystad Energy. "Naphtha, on the other hand, is independent of these concerns because suppliers are varied." A total of 4 million tons per year (tpy) of ethylene capacity is slated to come online in China by end-2025, aiding import demand, and this will increase to about 6 million tpy by first half of 2026, he added. The International Energy Agency (IEA) said in its July report that China's naphtha demand is expected to rise by about 6% in 2025 and by 8.6% in 2026, significantly outpacing the combined growth of propane and ethane, which is projected at just 2.3% in 2025 and 1.3% in 2026. Following the disruption in U.S. supply, China issued a second batch of 2025 naphtha import quotas in June totalling nearly 24 million tons, nearly doubling last year's allocations. China imported nearly 6 million tons of naphtha between January and May, up 22.81% on-year and the highest level since 2015, government data showed, with Russia, the United Arab Emirates and South Korea the biggest suppliers. This compares with a 6% on-year rise in propane imports to 12.3 million tons in the first five months, while ethane imports were flat at 2.3 million tons in the same period, government data showed. China's liquefied petroleum gas (LPG) imports, which include propane, are likely to stay lower in the third quarter amid cautious buying of U.S. cargoes, Energy Aspects said in a July 4 note. The robust naphtha demand is expected to underpin Asian refiners' margins, analysts said. Naphtha margins have risen about 4% this month to $73.30 over Brent crude on hopes of healthy feedstock demand from China. "Increased pull from China will provide support to (naphtha) cracks towards the middle of third quarter to fourth quarter," Rystad's Srivastava said. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
16-07-2025
- Business
- Yahoo
New plants, US trade worries to drive China's 2025 naphtha imports to record
By Mohi Narayan and Sam Li NEW DELHI/BEIJING (Reuters) -China's naphtha imports will hit record levels this year as new plants and caution over U.S. propane and ethane purchases will drive demand and support refiners' margins for the petrochemical feedstock, analysts and traders said. Cracker operators in the world's largest petrochemical producer, which pivoted in recent years to cheaper U.S. propane and ethane feedstock, are switching some demand back to naphtha after being ensnared in the U.S.-China trade war that disrupted their U.S. supplies, the sources said. The need to diversify supplies and to meet demand from new plants will drive naphtha imports to an all-time high of 16 million to 17 million metric tons (144 million to 153 million barrels) this year, consultancies Rystad Energy and FGE said. JLC pegs 2025 imports at about 15 million tons. China imported about 12 million tons in 2024, official data showed. "With issues in imports of ethane and propane, there is a trust factor that has come into play when it comes to U.S. cargoes," said Pankaj Srivastava, senior vice president, commodity markets at Rystad Energy. "Naphtha, on the other hand, is independent of these concerns because suppliers are varied." A total of 4 million tons per year (tpy) of ethylene capacity is slated to come online in China by end-2025, aiding import demand, and this will increase to about 6 million tpy by first half of 2026, he added. The International Energy Agency (IEA) said in its July report that China's naphtha demand is expected to rise by about 6% in 2025 and by 8.6% in 2026, significantly outpacing the combined growth of propane and ethane, which is projected at just 2.3% in 2025 and 1.3% in 2026. Following the disruption in U.S. supply, China issued a second batch of 2025 naphtha import quotas in June totalling nearly 24 million tons, nearly doubling last year's allocations. China imported nearly 6 million tons of naphtha between January and May, up 22.81% on-year and the highest level since 2015, government data showed, with Russia, the United Arab Emirates and South Korea the biggest suppliers. This compares with a 6% on-year rise in propane imports to 12.3 million tons in the first five months, while ethane imports were flat at 2.3 million tons in the same period, government data showed. China's liquefied petroleum gas (LPG) imports, which include propane, are likely to stay lower in the third quarter amid cautious buying of U.S. cargoes, Energy Aspects said in a July 4 note. The robust naphtha demand is expected to underpin Asian refiners' margins, analysts said. Naphtha margins have risen about 4% this month to $73.30 over Brent crude on hopes of healthy feedstock demand from China. "Increased pull from China will provide support to (naphtha) cracks towards the middle of third quarter to fourth quarter," Rystad's Srivastava said.
Yahoo
26-06-2025
- Business
- Yahoo
China, India shift to higher-grade coal, cut Indonesian imports
By Sudarshan Varadhan and Sam Li SINGAPORE/BEIJING (Reuters) -Top thermal coal importers China and India are slashing Indonesian shipments of the power-generating fuel in favour of energy-dense grades from elsewhere as a global fall in prices has made higher-quality coal more competitive. Coal purchases by China and India from Indonesia, the world's biggest exporter, are dropping faster than their overall thermal coal imports, as both nations shift toward higher-calorific value (CV) coal that yields more energy per ton, industry officials say. "Higher CV coal is more expensive, but produces more energy for every dollar spent at current prices. One million tons of higher CV coal can replace 1.2-1.3 million tons or even 1.5 million tons from Indonesia," said Vasudev Pamnani, director at India-based coal trader I-Energy Natural Resources. In China, Indonesian medium- and low-calorific thermal coal has been struggling to compete with discounted Russian supplies of similar grades, said Kpler analyst Zhiyuan Li. Ramli Ahmad, the president director of Indonesian miner Ombilin Energi, said Indonesian coal could make a comeback if prices of higher grades rise due to the Middle East conflict, but lower-CV coal will suffer as long as more energy-dense grades are competitive. Mongolian coal in China and South African coal in India have been the biggest gainers at Indonesia's expense, with their shares touching record highs in these markets in the first five months of 2025, Chinese customs and Indian trade data showed. Improved efficiency will continue to boost Mongolian coal exports despite falling thermal coal prices in China as Mongolian coal has remained price-competitive, said Xue Dingcui, analyst at Mysteel. China and India have also stepped up purchases from Tanzania, which was largely been absent from the global seaborne coal trade map until Russia's war on Ukraine in 2022. Indian traders have also increased higher-grade coal purchases from Kazhakhstan, Colombia and Mozambique this year, while Australian supplies have gained share in China. Indonesian and Australian coal indexes, reflecting grades preferred by Chinese buyers, have been trending lower since October 2023, with the Australian benchmark declining faster than the Indonesian one. LOOKING WITHIN Overall, Chinese coal imports fell nearly 10% to 137.4 million tons in the first five months of the year, while shipments to India dropped more than 5% to 74 million tons. Indonesian exports have been the worst hit, with supplies to China and India sliding 12.3% and 14.3%, respectively. The southeast Asian nation's total coal exports dropped 12% to 187 million tons in the January-May period, data from analytics firm Kpler showed. To counter export declines, Indonesian miners are pivoting to domestic demand, with local deliveries poised to rise 3% this year and exports set to decline about 10%, according to the Indonesian Mining Services Association. Domestic demand, driven by nickel smelters, is on track to account for the highest share of Indonesian coal supply in at least a decade and stands at 48.6% currently, according to government data reviewed by Reuters. Indonesia caps the price of coal sold to power utilities, making smelters a more attractive alternative to exports. "The smelter industry is the brightest spot for now, we get better prices than we get from the power industry or sales to China," Ombilin's Ahmad said.
Hindustan Times
25-06-2025
- Business
- Hindustan Times
China, India shift to higher-grade coal, cut Indonesian imports
By Sudarshan Varadhan and Sam Li China, India shift to higher-grade coal, cut Indonesian imports SINGORE/BEIJING, - Top thermal coal importers China and India are slashing Indonesian shipments of the power generating fuel in favour of energy-dense grades from elsewhere as a global fall in prices has made higher-quality coal more competitive. Coal purchases by China and India from Indonesia, the world's biggest exporter, are dropping faster than their overall thermal coal imports, as both nations shift toward higher-calorific value coal that yields more energy per ton, industry officials say. "Higher CV coal is more expensive, but produces more energy for every dollar spent at current prices. One million tons of higher CV coal can replace 1.2-1.3 million tons or even 1.5 million tons from Indonesia," said Vasudev Pamnani, director at India-based coal trader I-Energy Natural Resources. In China, Indonesian medium- and low-calorific thermal coal has been struggling to compete with discounted Russian supplies of similar grades, said Kpler analyst Zhiyuan Li. Ramli Ahmad, the president director of Indonesian miner Ombilin Energi, said Indonesian coal could make a comeback if prices of higher grades rise due to the Middle East conflict, but lower-CV coal will suffer as long as more energy-dense grades are competitive. Mongolian coal in China and South African coal in India have been the biggest gainers at Indonesia's expense, with their shares touching record highs in these markets in the first five months of 2025, Chinese customs and Indian trade data showed. Higher production and improved efficiency will continue to boost Mongolian coal exports despite falling thermal coal prices in China as Mongolian coal has remained price-competitive, said Xue Dingcui, analyst at Mysteel. China and India have also stepped up purchases from Tanzania, which was largely been absent from the global seaborne coal trade map until Russia's war on Ukraine in 2022. Indian traders have also increased higher-grade coal purchases from Kazhakhstan, Colombia and Mozambique this year, while Australian supplies have gained share in China. Indonesian and Australian coal indexes, reflecting grades preferred by Chinese buyers, have been trending lower since October 2023, with the Australian benchmark declining faster than the Indonesian one. LOOKING WITHIN Overall, Chinese coal imports fell nearly 10% to 137.4 million tons in the first five months of the year, while shipments to India dropped more than 5% to 74 million tons. Indonesian exports have been the worst hit, with supplies to China and India sliding 12.3% and 14.3%, respectively. The southeast Asian nation's total coal exports dropped 12% to 187 million tons in the January-May period, data from analytics firm Kpler showed. To counter export declines, Indonesian miners are pivoting to domestic demand, with local deliveries poised to rise 3% this year and exports set to decline about 10%, according to the Indonesian Mining Services Association. Domestic demand, driven by demand from nickel smelters, is on track to account for the highest share of Indonesian coal output in at least a decade and stands at 48.6% currently, according to government data reviewed by Reuters. Indonesia caps the price of coal sold to power utilities, making smelters a more attractive alternative to exports. "The smelter industry is the brightest spot for now, we get better prices than we get from the power industry or sales to China," Ombilin's Ahmad said. This article was generated from an automated news agency feed without modifications to text.
New Straits Times
13-06-2025
- Business
- New Straits Times
Oil prices jump more than 5pct after Israel strikes Iran
WASHINGTON: Oil prices jumped more than 5 per cent on Friday to hit the highest in more than two months after Israel said it struck Iran, raising concerns of escalating tensions in the Middle East that could disrupt oil supplies. Brent crude futures rose US$3.91, or 5.64 per cent, to US$73.27 a barrel by 0146 GMT, the highest since April 3. US West Texas Intermediate crude was up US$4.09, or 6.01 per cent, at US$72.13 a barrel. Israel said early on Friday that it struck Iran, and Iranian media said explosions were heard in Tehran as tensions mounted over US efforts to win Iran's agreement to halt production of material for an atomic bomb. "The Israeli attack on Iran has heightened the risk premium further," MST Marquee senior energy analyst Saul Kavonic said. "The conflict would need to escalate to the point of Iranian retaliation on oil infrastructure in the region before oil supply is actually materially impacted," he said, adding that Iran could hinder up to 20 million barrels per day of oil supply via attacks on infrastructure or limiting passage through the Strait of Hormuz in an extreme scenario. (Reporting by Sam Li and Florence Tan; Editing by Christian Schmollinger)
