Spot prices of domestically produced LPG in southern China's Guangdong province have gone up 17-19% or Yuan 950-1,020/mt ($138.75-149.00/mt) since August 15, on expectation of less LPG supply from domestic refineries, south China LPG traders said Wednesday.
     The price increase was triggered when Sinopec ordered its affiliated refineries to move up prices of wholesale domestic-grade LPG in an internal conference held mid-August in Wuhan, Central China, traders said.
     Sinopec told its affiliated refineries to raise LPG ex-refinery prices and reduce LPG yield rates at the conference, a source at Sinopec said.
     The company also asked its affiliated refineries to lower crude throughput after the Beijing Olympic Games in a bid to minimize refining losses, traders said.
     Lower run rates at the state-owned refineries triggered fears of less future supply, in turn leading to a spurt in local-grade LPG prices.
     Sinopec Guangzhou and Sinopec Maoming, two major refineries in south China, raised their LPG wholesale prices Yuan 950/mt and Yuan 1,020/mt to Yuan 6,600/mt and Yuan 6,470/mt Wednesday, compared with Yuan 5,650/mt and Yuan 5,450/mt on August 15, respectively, Platts data showed.
     Sinopec Guangzhou has cut its LPG yield rate by 200 mt/day to 1,000-1,100 mt/day, a source close to the refiner said.
     Meanwhile, Sinopec Maoming also plans to cut its LPG output by 300-350 mt/day to 750-800 mt/day after it shut a 250,000 mt/year gas fraction unit for a 25-day scheduled maintenance starting August 28, a Sinopec Maoming source said.
--staff, newsdesk@platts.com

(platts.com, Aug 26. 2008)