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Imposition of consumption tax likely to impact imports of mixed aromatic in China

With widespread news of imposition of consumption tax on imports of mixed aromatics has the Chinese gasoline blenders has already shifted them from using mixed aromatics to alternative blendstocks such as isomer-grade mixed xylene and possibly MTBE. Chinese importers have already switched to higher level of isomer grade mixed xylene in anticipation of imposing consumption tax. Earlier they were using lower grade of mixed xylene. In addition to this the Yunnan Petrochemicals will soon start its commercial operations adding 200,000 mt/year of new toluene capacity.