Logistic Risks and Squeezed Margins: Challenges for LPG Importers in China

SINGAPORE (ICIS)—China’s LPG demand is projected to hit 80m tonnes this year, a lower growth rate of 7% compared with last year’s 14%, as the sector grapples with a twin-fold challenge of logistics risks and weak downstream demand.

China’s LPG demand growth is mainly driven by feedstock demand from the propane dehydrogenation (PDH) units, which are projected to account for around 30% of China’s propylene production this year.

In this podcast, ICIS Analyst Lillian Ren shares insights on the challenges faced by the PDH operators.