Overview

• The Commerce Department’s Bureau of Industry and Security withdrew the June 3 licensing rule on July 2, eliminating the need for exporters to obtain special approvals for ethane cargos to China.
• At least eight vessels that had been held up along the US Gulf Coast in June have now set sail to China with full loadings.
• Ethane exports to China fell from 257,000 barrels per day in May to near zero after the licensing requirement was imposed.
• Traders and analysts expect July shipments to recover to around 240,000 barrels per day, matching normal seasonal volumes.
• Market participants view the policy reversal as a sign of a strengthening trade truce following a rare earth minerals agreement with Beijing.