CHINESE importers expecting tons of cargo of U.S. commodities from beef to propane said they hope to sell the goods to South Korea or Japan after China’s decision to slap extra tariffs on items from agricultural products to chemicals.

Traders of soybeans, of which China is the largest importer, said they were bracing for mass cancellations of purchases, even though the United States is the country’s second-largest supplier.

Prices of soybeans shipped from ports in the U.S. Pacific Northwest, the most direct route to Asia, dropped by US$10 to US$12 per ton last week, U.S. soybean traders said.

Buyers of propane used for making ethylene and propylene are looking to swap U.S. shipments for Middle Eastern barrels with buyers in South Korea and Japan.

“Even though we are committed to U.S. supplies, we could swap them for Middle East cargoes with South Korean or Japanese buyers by paying them US$10 per ton extra freight cost,” said a manager with an East China-based chemical plant that buys U.S. propane, and who gave only his surname, Zhong.

China bought 3.56 million tons of U.S. propane last year worth some US$2 billion, or 19 percent of its total imports.

The 25-percent additional tariffs will likely hit U.S.-based exporters such as Enterprise Product Partners and Phillips 66, and give a boost to rivals in the Middle East like Qatar and Saudi Arabia.

“The market will be thrown into some initial chaos and the freight market will also be affected. Diversions and swaps mean the demand for tankers will be lower, as U.S. voyages are shorter to northeast Asia and also shorter from the Middle East to China,” said a senior dealer with Jovo Energy.

The tariffs on beef were not expected to have much impact on the Chinese market, which had only resumed imports from the U.S. last year after a 14-year hiatus.(SD-Agencies)