As a result of growing consumption in China, Russian LPG exports to the country by rail were on course to surge last month. Demand from other importers slumps due to Covid-19 restrictions.
At the Zabaikalsk-Manchuria border crossing in April, Russian LPG producers applied to ship 120,800 tonnes of LPG to China. Since rail exports to China began in earnest in August last year, this is more than 10 times higher than in any month.
As the government eases nationwide lockdowns to contain the virus' spread, China's domestic LPG demand has started recovering. A Russian LPG producer said Russian exports to China are increasingly attractive due to the crash in regional and domestic LPG prices. As producers readjusted schedules over the month, however, traders said the final export figure for April is likely to be lower. Russia shipped 46,940 tonnes to China over 4-30 April.
