July finished with additional signs that the LPG markets are coming back into favor, with overall offtake increasing 14% from June. Higher discharges took place in parts of Asia, where Japanese and South Korean imports each grew 24%, to 324,000
Recent price gains in the ethylene and propylene markets have been matched by chemical makers’ official selling prices with several price increases announced in recent months. Signs of a demand recovery from the coronavirus-induced slump continue to emerge. Global ethylene
Olefin and feedstock offtake plummeted in February in regions that are being impacted by the coronavirus, such as East Asia (See Vol. 1, Issue 1), but Latin America has nearly been completely spared. Discharges of propylene and naphtha in the
Government initiatives to encourage India’s LPG use by households has given a steady boost to demand, and recently improved economic data should encourage that growth to continue.
Higher demand for propane-fueled crop-drying helped push US prices up nearly 40%. The effect of the price gain was amplified in Northwest Europe and the Far East, where propane nearly doubled since early September.
East Africa’s LPG offtake could set up for a strong demand period in coming months. LPG offtake in the region soared to 48,000 bpd in July and has averaged 14,000 in the five months since.
There is a cyclical pattern to LPG demand in North Africa, but overall offtake has been on an upward trend in recent years.
US crude oil imports from OPEC decreased sharply over the past year, but the decrease is only partly due to increases in domestic oil production.
US Gulf LPG loadings are likely to be unchanged next week, as 17 VLGCs should reach port and load. Most vessels are heading toward Houston, including three that are already loading there.
After a busy week following Iran’s downing of a US unmanned drone, oil and product markets are now dealing with the fallout from the fire at the PES refinery in Philadelphia. It caused a moderate impact on crude oil imports
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