Singapore — Iran's LPG shipments loaded, or due for lifting, in September dipped to 356,000 mt ahead of new US sanctions in November, after hitting 568,000 mt last month, the highest since previous Western sanctions for its nuclear plan were lifted in January 2016, fixtures from shipping sources showed.
As in recent months, the bulk of the volumes are bound for China, helping it to plug a gap in cargoes from the US, which Chinese importers are avoiding or reselling due to higher tariffs in a mounting trade war.
Some tonnes are also seen destined for Thailand and possibly South Korea, according to shipping sources and S&P Global Platts trade flow software cFlow. The September program takes Iran exports so far this year to 4.064 million mt, according to shipping fixtures.
China last month implemented tariffs on a second tranche of US goods in retaliation to US tariffs. Energy commodities including propane, butane, naphtha, jet fuel and coal are on the second list of $16 billion worth of US products that attract 25% additional tariffs from August 23.
Late Monday, the US announced new tariffs on $200 billion worth of Chinese goods starting September 24, followed by retaliatory tariffs by China on $60 billion worth of US imports. The White House statement vowed a phase three set of tariffs if China retaliated, which would include an additional $267 billion worth of goods.
After the surge in Iranian exports in August, the decline in September comes ahead of the re-imposition of sanctions by the US, in which international buyers of Iranian oil have till November 4 to wind down contracts before Washington re-imposes sanctions on the oil, energy, shipping and insurance sectors, a US Treasury Department fact sheet showed.
EYES ON IMPACT OF US SANCTIONS
While Beijing and Tehran have agreed to boost strategic cooperation during Iranian President Hassan Rouhani's visit to China in June, some traders fret that if US sanctions resumed in November, Chinese importers might reduce Iranian volumes and seek alternatives from other Middle East sources and Africa.
Trading firm Pacific Petrochemical is taking a cargo comprising 33,000 mt of propane and 11,000 mt butane from Iranian Gas Commercial Co., or IGCC, aboard the VLGC Pacific Yantai.
The vessel is now off Fujairah/Khor Fakkan and is due to arrive in Guangdong October 7, cFlow shows. It last departed from Zhangjiagang in Jiangsu province, on August 21, cFlow shows.
Thai trader Siam Gas is taking a cargo from IGCC aboard the Ming Ming, which is first due to arrive in Jebel Ali on Saturday, cFlow shows. The VLGC last left the Thai port of Sriracha on September 8 and was last in Assaluyeh August 14, cFlow shows.
The Siam Gas vessel, De Hua, has also departed Assaluyeh on September 11 with an IGCC cargo comprising 33,000 mt propane and 11,000 mt butane. The VLGC is due to arrive in Sriracha, near Bangkok, on September 26, cFlow shows.
The Thai trader is also due to lift a cargo from Persian Gulf Petrochemical Industry Commercial Co., or PGPICC, aboard the EverRich 10, which is expected to arrive at Assaluyeh on October 2. The vessel last left southern China's Hukou port September 14, cFlow shows.
Naftiran Intertrade Co., or NICO, a unit of National Iranian Oil Co., has lifted aboard the Ming De a cargo comprising 33,000 mt of propane and 13,000 mt of butane from IGCC. The vessel has left Assaluyeh September 16 and is due to arrive in Shantou on the eastern coast of Guangdong, on October 5, after a stopover at Fujairah, cFlow shows.
NICO is also due to lift a 44,000 mt evenly split cargo from IGCC aboard the VLGC Venture Gas -- formerly EverRich 8, which is now at Assaluyeh, cFlow shows. Iranian trading company Triliance is scheduled to lift aboard the Gas Jenny a cargo comprising 33,000 mt of propane and 11,000 mt butane from PGPICC. The vessel is currently off the Indian west coast and is scheduled to arrive at South Korea's Busan port on October 8, according to cFlow.
Triliance is also due to lift a 46,000 mt evenly split cargo from IGCC aboard the LPG Scorpio, which is currently off Fujairah before setting off to Ruwais. The vessel last departed from Damenzhen in China's Zhejiang province September 5, cFlow shows.
