1933-01-05 — Page 21

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PETROLEUM PRODUCTS IN SOUTH CHINA

FAIRY GOOD TRADE EXPERIENCED

KEROSENE

Prices generally were a good dea! "lower than in 1031 but remained steady for the second half of the year,

GASOLINE & OIL

SECOND ・ OPINION

Another "well-known firm “Bike

fore

the RATTAN AND CANE

cheaper

part of the public, to Brudes, regardless of the fact that BUSINESS SUFFERING DUE

heap oil, which is necessarily of TO FALL IN SILVER low quality, cannot possibly conno

gives ita report on similar producte selected. Again, "fairly high local|

as follows:-

KEROSENE

to the increase in motor vehicles and the various new machinery which In South China comprising the has becà installed in the interior, There is a slight but nevertheless Provinces of Fukien, Kwangtung, welcome tendency for consumers to and Kwangsi, with of course use high class branded lubricants Hongkong included, a decrease in for their new machinery although consumption of about 25 per cent the greatest volumes of lubricating oil trade in Seuth China is still in occurred in 1939 as compared with very cheap grades. The general | the previous year," conditions Up-country are such that concerns cannot afford to pẩy high- prices for their oils and it is not vet generally realised that econo- miss can be effected by using high grade specialised oils even though their initial cost may be high.

The incrense in consumption noted during the first half of the year, was not maintained, despite the freedom from political troubles and irrogu lar taxes. This can be attributed to the poor economic conditions, due to the universal trade depression, to

There has been unsiderable deve. the financial crisis in Canton earlier topment in military aviation and in in the year, and also to the depre- this particular ranch the use of ciation in Canton currency which, first class oils is appreciated, with the result that there has been a compared to the Hong Kong Dol-good demand for aviation oils. iar, was considerably lower than in Supplies of absolutely first class lubricating oil are now available at all places where there is a landing ground in South China,

1931.

:

One of the features of the year Its been the increase in locally pro- duced kerosene distilled from "gns

oil.

Smuggling of kerosene continues from Kwong Chow Wan to the neighbouring parts of China, but the Chinese Maritime Customiz have become more active and it is to be hoped that the occasional reisures

will.net as a deterrent.

LIQUID FUEL Compared with 1991, there has teen saine decrease in the-consump- tion of Liquid Fuel in the South China area, but this decrease is probably smaller than in many lines

of business. The Liquid Fuét trade

of South China can roughly split into two parts:--

|

The demand for technical white oils has been maintained and these are principally used for the manu facture of hair oils which are sold all over the area. The white oil production from several large Euro pean refineries is now available in South China and this has caused a general reduction in the prices. There have been practically no changes in lubricating tales from those necessituted by fluctuations in exchange.

ASPHALT

FIFTY PER CENT

aly do the work for which it is AMERICAN BUSINESS FALLS

prices have made it highly profit able for many whose business is

The year under review records a not the lubricating oil business; to

marked decline in the Rattan." import the cheapest red engine oils

Caze and Furniture business. for sale in South China, knowing immities in securing orders due to the world trade depression fur- full well that most people think of vil as oil and therefore pay no thee Augmented by the Freight attention to quality, regardless of Changes, which are paid either in the fact that such necessarily low. Currency or in Sterling; as quality oils are greatly more ex owing to the low value of silver. pensive th the best quality pfa and with an unchanged freight curable, that is, from a deprecia rate (with the exception to goods tion of the value of machinery destined for the Pacific Cout point of view.*

Po of North America) to

DIESEL OIL

with the silver situation, exporters

ure finding it extremely difficult, to trude

Prices of necessity have been at a relatively high level due to low silver exchange and owing to the comparatively large import duty payable on kerosene importa into China. These price levels coupled with the generally reduced oir South Chinn Proper including Market prices for Dizel Oil in cumstances

On the whole dealers in this line of the consuming Fukien, Kwangtung, Kwangai and

Hongkong, have been somewhat witnessed a decline of about fifty public, can wall account for the lower in 1900 than they were in per cent, in the American business decline in consumption An addi 1931. Diesel oil is not as exteu- fional factor of great importante sively used for industrial purposes as compared with 1031, while in affecting the imports of foreign in South China as one would ex- the European trade this decline is

pect Statistics for 1032, however, I not so marked. kerosene into China has been the show increased consumption for The following approximate increase in distillation of kerosene this product in industrial and from gas oil received from abroad motorboat ongines as compared Agures of the 1832 and 1031 ship- with the previous year. It is but imported under a duty rate evident that Diesel cul is receiving ments will be found interesting which allows the kerosene produced more recognition as a clean, f.

Exports to Europa. therefrom to be sold at a wide cient and economical fuel from price differential below the import Prospective users. ed kerosené.

Inasmuch as the

Chinese Government is losing the major portion of the import duty imposed on imported kerosene by the extent to which that product is replaced by the locally distilled kerosene, it would seem to their

While increased quantities of Diesel oil have been imported and sold for use as a fuel, rather large quantities have also been imported especially during the latter part of 1032, and used for the distillation of low-grade kerosene.

PARAFFIN WAX

The manufacture of joss candles is the principal and practically the

The use of Petroleum asphalt con-interesis to institute measures to tinues steady, showing a slight

recover the revenue now being increase in consumption which can reasonably be isoked for. As sacrificed under present duty sche-sole use for Parafin Wax in South far as Hong Kong is concerned, the dules actual conaninptien varies little the biggest consumer being the Govern- ment P.W.D. In China Proper the asphalt market is developing gra dually as the Municipalities of the

GASOLINE

There continues to be

China. During last year and the previous year the Nationalist Gov- ernment were very Betive in cer- tain provinces against the use of widejoss candice. It would appear that

this campaign was not very success fal and not at all popular. The

South China ports bring the use of spread activity in road building

1. Supplies to ships calling at this product into their scheme of in most parts of South China, so consumption of joe candles during municipal, reconstruction and deve-that whereas the price and ex- Hongkong for bunkers, and

lopment.

factors. change

together with

4. Deliveries to inland consumers for various purposes.

"The potential market for asphalt

is increasing always with the in- adverse economic conditions, have sing construction of roads in the tended to restrict the sales of asphalt surfaces is hindered by the this product has shown a slight interior, but the actual laying of gasoline, the total consumption of Provincial Governments' finances

Communica and likewise financial difficulties of increase during 1939. municipalities situated in the in- terior, as well as the fact that the tion by motor bus once instituted, construction and maintenance of is of course such a boon to widely roads is almost an entirety new separated communities, which here feature in the corntry, and judged by western standards, is notable for the most complete absence of plant in the application of scientific

methods,

PARAFFIN WAX

It will be appreciated that with the general decrease in trade and usequent decrease in amount of cargo being carried in ships in South China waters, certain ships Lave been laid up and others have not been calling as frequently as in other years.

For this reason the consumption of Liquid Fuel by ships bunkers has shown a fairly large decrease. On the other hand, consumption of fuel in the inland districts has shown some increase.

The use of Paraffin Wax for in- Electric Light plants continue, to he dustrial purposes continues to be erected at interior points and addi-nogligible, and the main outlet for tionally those that already exist this product is the sale to native joanufacturers of Joan candles, occasionally make additions to their which are used in connection with plant, the net result being that the religious and ceremonini cere demand for liquid fuel registers a monics. A small percentage is also used by native manufacturers steady increase. Furthermore, there of foreign style candles. is a small bat fairly consistent in- erease in the demand for diesel fuels for use in staall engines operating Rice Mills, Tea Factories, etc.

Of especial interest is the fact that there has been a considerable expansion in the danand for fuel for central heating arid domestic purposes generally. The advantages

decrease

The trade during 1932 in Kwan tung has shown some over that done in preceding years, which can be attributed in part to the decrease in the use of Joss candles in religous celebrations a practice which, incidentally, the Chinese Gaverament authorities

taxation amounting to nearly 20

have definitely pronounced against. However, the greatest factor, pro bably causing the decrease in the trade of Paraffin Wax has been the of oil for this type of work are gra- combination of the high prices dually becoming better known in pecessitated by the considerably Hong Kong and any private re-fluctuating rates of exchange on the countries from which this pro fidences now have oil fired cooking duet is imported, which countries ranges, in addition to-large buildare, America-and the Dutch East ings such as the new Gloucester Indies, and additionally, increase Hestaurant. It may not be general ly known that most of the larger buildings in Hongkong, now rely dpen oil tør: their hoy kate sup- lies and central heathing me of the Hongkong and Shanghai Hotels Co's Mocat establishments Glouces ling," the National City Renk Mütilde Hospital and War Memorial Hospital, to name only

tofore depended on the old means of travel, that bus lines once open. ed are being maintained and new ones being established in the face of generally adverse economic con- ditions throughout South China.

1032 was greater than in the pre- vidis year, with the resultant im-

WIX Prices of Parafia Wax, portation of greater quantities of despite the drop in exchange, were

prices, some importers of wax on the whole lower than during 1931. In order to meet these

brought in large quantities of very poor semi-refined wax, which was offered in competition with the well-known products of established importers.

PARAFFIN CANDLES Prices of candles, both of native manufacture and imported brands, were lower than in the previous year. This was to be expected in view of the fact that wax prices were also lower. The consumption LUBRICATING OIL

of high grade standard canilies of European and American manufac Chiefly due to falling off in ture suffered a decline, and this was to be expected in view of the demand for freight space, fewer low prices of candles manufactured steamers are making Hongkong in South China. Part of the port of call, and consequently re decline was also no doubt due to quirements of lubricating oil for of the, more popular and better

the fact that importers of candles: Marine purposes are much less kitown brands experienced consi The lower value derable trouble in preventing small than a year ago.

manufacturers from supplying an of local currency has necessitated inferior article sold in packages higher prices for quality brands imitating the popular brands.

SHIPPING CONTINUED FROM PAGE 2

PACIFIC BUSINESS

WORST YEAR KNOWN TO

AN OLD RESIDENT

GLOOMY PROSPECTS AHEAD

"H) | minently in the consuming momu 1802 Pacific business had ✅ been

Prices through the ye have scarcely · fuctuated and fave To (practically the same hose ruling at the end of

per sant of the selling value of who can claim to have been con An old resident of the Colony, Patalin Wax was imposed at the nected with the Pacific shipping end of last year throughout the busines for the past yety five territories of China incknowleding years, interviewed by a represen

purisdiction of Canton. The tative of the Daily Fras, stated reault of these two factore, which that all the pessimistic forecast of necessity Rust Be very pro made last year with regard to the acturers that has been to enralised. The year now coming to compage The use of nan bils and close had been the worab on re waxes whilos as far the trade oord for the past weity five lone in legitimate Paradh Waxes yesia is concerned there his been ja tural tendency for the show an foresand percentage of sales in the cheap semi-redited waxes at the expense of the fully refined grades.

- PARAFFIN WAX CANDLES

LUBRICATING OIL The total trade in foreign style

fubricating oil ·

hand in hand wit

since then the market has been fairly active but it is still way be low the usual business. The pros. pects for next year are far from bright and it might quito concei- vably be wores, than the present

one...

The Chinese American Shipping Company came in on the trade daring the year. This Company is Company using the ships of the East Asiatic

Canes

bales. 1939 18,000 1931 23,500 Rattan Core and

Ratten ware ..15€

9,700

1831 1,400

Exports to Great Britain.

Canes

balas.

.1932 30,000 1931

41,700

Rattan Core 'and'

Rattan ware....1932

2,700

1931

2,000

Exports to United, Staten,

bales.

Canes

1932:

$,300

1931

€,400

Rattan Core

...1032

4,300

1931

8,600

11,000

Bambooware and

Rattan ware....1939

1931. 10,000

Rattan Furniture." Exporters and Factories are ex- periencing extremely lean times.

decline in exports as compared with During 1951 we saw a 30 per cent.

1930. During the last 12 months we have witnessed a further decline of almost per cent from the 1931, shipments.

The only market has been the Pacifio Ports of the United States and the Hawaiian Talands,

1032 shipments totalled about 13,600 bales.

1931, shipments totalled about 91,500 briles.

PACIFIC SHIPPING

LEADING COMPANY'S..

VIEWS

NO IMPROVEMENT TO REPORT

In making a hasty review of the Shipping Situation on the Pacific during the year just passed, one is impressed with the fact that there has been no improvement over the year 1931, writes the Manager of a leading Shipping Company in Hong Kong.

.}}

The total tonnage on both. Im ports and Exports has fallen oft seriously The low value of silver has resulted in high prices on im ported goods in local currency. The depression in foreign countries bag been at its lowest ebb during 1932, with the result that the buy The NYK have withdrawn ing power of the people in foreign their Vanciver service from Hop markets has been so greatly reduc Kong and their chips turn based that even- though prices from Japan. That courred at the Hong Kong, goods in foreign our end of the Summer.

Berancied Haye bead very low, there The Oceanic and Ori

has been very little buying

The has be gation Company

with

the

replacing Tho bedsonal movements at Local RA crackera tand other and Chinese mer

The Bad and “much.... Ten mach WOLES

which was bad There are no indications vement.

the

Rates of freights have prach; the fratt Candles manufactured from Paracally remained untouched and Hong Kon

fin Wax has remained about theough there been some

sans though, as in the case.

Parafin Wax, the Lam

High-price Terutherfor

Fastured Candler, toget

new and

chas

Kur a mind bunce n the Radike Shipping Cop- pricin ference things are like

tagy having

✪Business Suffers.

ndition trade in be traced to several

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