LPG Special Report – From winter to spring: LPG market at a turning point
Access our exclusive LPG report, compiled using Vortexa’s proprietary data, looking in-depth at LPG global market dynamics. This report answers the question of LPG imports and exports dynamics across the globe, alongside what key factors are driving freight rates for LPG.
Key report takeaways:
- Soaring US LPG exports to East Asia are taking spotlight in the LPG market, propelled by the latter’s strong import appetite and lower VLGC freight rates.
- Tighter US supplies to Europe have pushed up prices in the region. Flows are expected to rebound with US-to-Asia arbs narrowing.
- Middle East LPG exports have seen a sharp decline in Feb, stemming from Saudi Arabia’s Yanbu port maintenance. Supplies from the region should recover in March
- As spring approaches, LPG heating demand is expected to recede. With PDH and ethylene cracker margins remaining soft, LPG imports from East Asia, particularly China, are likely to slow in the months ahead
- VLGC tanker rates have cooled from the highs seen last December, although rates have climbed in the recent weeks amidst longer waiting times at the Panama Canal
- Although newbuild deliveries are estimated to reach a 5-year high this year, more tankers due for drydock and traveling at slower speed would likely keep vessel supplies tight