Bitumen in China
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Bitumen in China 1 Historical growth and trend for Bitumen in China Over the years Chinas domestic production has risen to provide most of the local demand. It remains a key importer of cargo, though imports remain around 400,000 MT P Demand from road projects will warm up in 2013-2015. This is the last three years to accomplish the infrastructure construction targets set in the ‘‘Twelfth Five-Year Plan’’ (2011-2015), so many provincial governments will make a final dash in the road construction. A Futures Contract has just been launched in Shanghai for Bitumen Futures that has proved very popular as a lead in to crude futures in the SHFE, expected in the next 6 months. Current Suppliers of Bitumen into China
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Details of the bitumen market in China
Transcript of Bitumen in China
Bitumen in China
1
Historical growth and trend for Bitumen in China
Over the years Chinas domestic production has risen to provide most of the local demand. It remains a key importer of cargo, though imports remain around 400,000 MT P
Demand from road projects will warm up in 2013-2015. This is the last three years to accomplish the infrastructure construction targets set in the ‘‘Twelfth Five-Year Plan’’ (2011-2015), so many provincial governments will make a final dash in the road construction.
A Futures Contract has just been launched in Shanghai for Bitumen Futures that has proved very popular as a lead in to crude futures in the SHFE, expected in the next 6 months.
Current Suppliers of Bitumen into China
Bitumen in China
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South Korea makes up by far the largest supplier. SK Energy is the largest of the suppliers.
Note that the importers are all in the Asia region, as freight rates make it competitive. For the China market it becomes highly freight dependant for bitumen to trade.
Possibly cargo is moved via Singapore.
I am aware that there are Iran origin cargoes moving to Southern Ports such as Fangcheng Port on the China / Vietnam border. We have strong senior relationships that manage the customs authority at this port.
Current China Pricing and Import Duties
The prices below are approximate as of Monday, 04 November, 2013 and based from the FOB Bandar Abbas rate publicly available, obviously this would be the changeable rate.
Bitumen in China
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The prices are offer prices listed on the open market in China.
FOB Bandar Abbas 530
South China 60/70 Cargo Frieght Diff
Fangcheng 605 75
Shenzhen 600 70
Shanghai 595 65
North China
Tianjin 605 75
Qingdao 600 70
Import Duties for China
China is subject to a number of different duties and taxes for Bitumen:
1) Import Tax @ 8% / (HS Code: 271490) 2) VAT 17%
Note that VAT is calculated on the Post import price.
The table below is with unconfirmed inputs on pricing and is just an example.
RMB USD 6.10
60/70 FOB Bandar Abbas 3233 530
60/70 in China (Shanghai) 4623 758
Duties
CFR Qingdao (USD) 3660 600
Customs Duty 8%
Sub Total 3953 648
Bitumen in China
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VAT @ 17% 672 110
Total Cost of Cargo in China 4625 758
Pending Deal: 2k + 4k 60/70 Bitumen CFR Qingdao, China
The RED highlight in the first table is for the current shipment request for trial shipment as first proposed trade as follows:
Cargo: 60/70 BitumenVol: 2,000 MTPacking: New Steel Drums, containerisedOrigin: IranPayment: TBDDisport: Qingdao, ChinaDelivery: ASAPNotes: First part of a term contract of 4,000 MT per month for 6-12 months using a formula and reference price for the term of the contract.
