The propane liquefaction tax may affect the PP plastic market.

The breakthrough in PP plastic modification technology is expected to be achieved on June 19, 2015. In the market demand for modified polypropylene, fibers and injection molding... However, in the domestic specialty material market, modified polypropylene has already secured a place. The modification of polypropylene can be done by...

Since 2015, 80% to 95% of the propane imported by China has come from the Middle East and the United States. Unlike China's high dependence on the Middle East and the United States for propane imports, the United States' propane exports are relatively less dependent on China.

For example, in the last three years, from 2015 to 2017, the United States exported 2.69 million, 3.25 million, and 3.37 million tons of propane to China, accounting for only 14.9%, 13.80%, and 13.27% of U.S. propane exports; however, during these three years, the proportion of propane sourced from the United States accounted for 31.51%, 28.04%, and 25.25% of China's propane imports respectively. EIA data shows that from 2013 to 2017, U.S. propane export volumes reached 8.87 million, 12.43 million, 18.07 million, 23.55 million, and 26.58 million tons.

In other words, while the volume of propane exported by the United States is increasing, most of the newly added propane exports from the United States are still being consumed in other regions around the world despite China's increasing consumption year by year. Therefore, increasing propane tariffs would have a far greater impact on China than on the U.S. industry.

Keywords: PBT