LPG Monthly Report: Supply push USTR fleet

LPG Monthly Report: Supply push USTR fleet reshuffling to mark LPG markets in Q4

A concerted supply push from the Middle East and US continues to mark global LPG trade flows, with more seasonal highs expected in Q4; record-high US ethane production and stocks are fueling fresh highs in exports, anchored by new heights in offtakes from China
US-China LPG flows are on an upswing ahead of the tariff pause ending in November, while Japan and South Korea's appetite is on the wane despite open arbs
MEG maintenance and Russia drone damage are tightening naphtha outflows, even as appetite stalls from poor petrochemical margins
Freight rates are set to shrug off sluggish near-term dynamics due to a USTR reshuffle and rising contract cargoes from USGC export expansions, while weaker laden/ballast ratios in the MEG are widening the BLPG3-BLPG1 freight spread
The PADD 1-NWE propane arb is to become more favourable

Published: September 2025

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A concerted supply push from the Middle East and US continues to mark global LPG trade flows, with more seasonal highs expected in Q4; record-high US ethane production and stocks are fueling fresh highs in exports, anchored by new heights in offtakes from China
US-China LPG flows are on an upswing ahead of the tariff pause ending in November, while Japan and South Korea's appetite is on the wane despite open arbs
MEG maintenance and Russia drone damage are tightening naphtha outflows, even as appetite stalls from poor petrochemical margins
Freight rates are set to shrug off sluggish near-term dynamics due to a USTR reshuffle and rising contract cargoes from USGC export expansions, while weaker laden/ballast ratios in the MEG are widening the BLPG3-BLPG1 freight spread
The PADD 1-NWE propane arb is to become more favourable

Published: September 2025