Trade Frictions Intensified. To Avoid Tax, At Least 10 Freighters Accelerate To China.

The Sino US trade war was heating up. On Monday night, China announced that it would raise tariffs on US $60 billion from June 1st.

Fiji, a bulk carrier, queued for a week before entering Dalian Port, and landed 67113 tons of American soybeans on Sunday.

According to the US Department of agriculture (USDA), the amount of soybeans that China has purchased but has not yet arrived is about 7 million 400 thousand tons.

Another 468 thousand tons of American corn, 103 thousand tons of pork and 704 thousand bales of cotton have been sold to China, but they haven't arrived yet.

Ken Morrison, an independent analyst at St. Louis, said: "the sales of registered accounts have been slow lately.

The chance of cancellation has increased. "

The NCCA is also worried about docking with cotton orders.

Campic, vice president of the organization's economic policy analysis department, said: "we are worried that they will not sell what we sell to Jody Campiche".

In the energy sector, a LNG freighter is still on the way.

Liquefied natural gas is also locked in China's tariff list.

According to information, Iberica Knutsen left the Sabine Pass receiving station of Cheniere energy in April 10th and is now heading for Taizhou, Zhejiang.

The super tanker Alsace also moved at full speed to Qingdao port, which previously carried us crude oil in the Caribbean.

In July last year, a cargo ship carrying us soybeans flew to China at the maximum speed, hoping to catch up with the arrival of Dalian Port before the new tariff came into effect. However, it eventually failed to catch up, making tens of thousands of Chinese networks panic.

Tight trade relations have severely hit the US petrochemical industry: 8000 or unemployed.

The US Chemical Industry Council (ACC) has said that since the shale gas revolution in the United States, 325 new chemical projects have been announced in the United States, with a total investment of more than 194 billion US dollars, of which 63% are foreign direct investment or foreign partners. It is estimated that the trade surplus of us chemicals will soar to 72 billion US dollars from about 33 billion US dollars in 2017, but the escalation of trade wars between China and the United States will probably make the expected figure empty. In 2023,

China's counter measures will also affect the US chemical industry, and the increase in tariffs caused by export to China will lead to higher costs, which may lead to some special polymer producers in the United States reducing or terminating their production in the us so as to maintain their competitiveness in the Chinese market. After all, no enterprise is willing to lose the Chinese market.

According to the Houston chronicle, the tense trade relationship with China has already struck the petrochemical industry along the Gulf of Mexico. Now the Trump administration is going to levy a new round of tariffs. Enterprises will face rising costs, shrinking profits and more difficult access to the market.

If the trade frictions with China are escalating, thousands of jobs and billions of investment in the US will be put into danger.

Because natural gas production is abundant and economical, many energy and chemical enterprises have invested billions of dollars in the Gulf of Mexico to build chemical plants, and exported products to the international market through the Houston channel.

Many investments are based on the growing demand for chemical products in China.

However, now these chemical enterprises have to face the possibility of the decline of China's market demand, resulting in global supply and price declines.

According to the Houston chronicle, all of this has weakened the return on investment of $140 billion worth of petrochemical projects along the coast of the Gulf of Mexico, which may cause companies to be hesitant to expand production or build new plants.

According to the US chemical Council, China's increase in tariffs on American exports may lead to more than 8000 workers in the U.S. chemical industry.

The Trade Organization says that up to 46000 people in the companies that provide goods and services for these chemical companies will be negatively affected by tariff increases.

In response to the US tariff policy, China has a total of 110 billion US dollars, including $10 billion 800 million in chemical and plastic products, which have been implemented and will soon be implemented.

Two major polyethylene products are seriously affected, while polyethylene plays an important role in chemical products exported from the Gulf of Mexico. China also levied 25% tariffs on LPG and exported the same lot from the Gulf of Mexico.

Houston based Phillips 66 executives said this week that trade frictions are cutting margins on chemicals and LPG.

Phillips 66, vice president of investor relations Jeff Dietert, said the trade dispute "is impeding the overall economic growth of the United States and the demand for us chemical products, especially some refined products."

Commerce secretary Wilbur Ross said recently that the tariff increase brought about by trade frictions will have a widespread impact in the whole country. The high proportion of natural gas and oil industry in the economic structure made Texas the center of trade friction. At the moment, there is no sign of ending.

Data show that there are nearly 5000 energy companies in Houston alone, of which 250 thousand employees account for nearly 10% of the local workforce.

The oil and gas industry has provided millions of jobs to the United States. No wonder there are comments that when the industry is affected by the government's erroneous policies, the consequences will ultimately be borne by the American people.

Although crude oil has not been included in the tariff list of the two countries, the US crude oil export to China has been affected.

Last Friday, the US imposed a tariff of $200 billion on products. China also quickly made counter measures. The price of exchange rate, stock market and commodity almost fluctuated in a short time, and the polyester industry chain was not spared.