Key Takeaways

In this special report, Vortexa examines the de-escalation of the US-China tariff war and our expectations of a return to seasonal LPG flows from H2 June.

That said, given additional US LPG export capacity starting from this summer, ample naphtha supply from the Middle East and Russia, and stagnating demand from the likes of Southeast Asia and Northwest Europe amid a swath of Asia steam cracker and PDH outages, resulting looser regional balances for LPG and naphtha are likely to keep Asia propane-naphtha swaps volatile but eventually settle to trading at $15/t on either side of the $50/t switching threshold.