With no consumption tax, China ups BTX, LCO imports.

摘要

A proposed consumption tax on imports of mixed aromatics (BTX) and LCO to China seems unlikely to be implemented, freeing the way to resume imports of BTX and LCO. According to a Beijing-based trader, "The government seldom introduce taxes in 3Q, so we expect the next possible timeline for consumption tax on the products in end-2017 or early 2018." A Guangzhou-based trade source added, "As July 1 has passed and the consumption tax on the products did not come as expected, we will resume mixed aromatics and LCO imports as normal at least until end of 2017." Imports of mixed aromatics fell to 777,655 mt of May, down from a record of 1.65MM mt in April, on the fear that the consumption tax would be implemented. LCO imports that same month were down 66.9 from a record 764,562 mt (5,741,400 bbl) in April to 252,884 mt (1,889,007 bbl).