- Coronavirus may drop Chinese LPG demand by 3%
- The drop is likely to cut in the LPG shipments, thus affecting the freight rates.
- US exports’ cancellations resulted in too low LPG demand.
- The seasonal demand would be further reduced, when the winter ends in Japan.
- India’s LPG demand is forecast to hold steady during the coming months and LPG shipments from the US to Asia are at steady rates for February.
- The rates estimated to be at 1.8 million-2.0 million mt during March.
Demand for Chinese liquefied petroleum gas is likely to drop by 3% in the following period, says an article published in Safety4Sea.
Impact of demand drop
Due to the coronavirus outbreak, demand for Chinese liquefied petroleum gas is likely to drop by 3% in the following period. This in turn would cause cut in the LPG shipments, thus affecting the freight rates.
LPG demand drop
The LPG demand is reportedly too low over the following months, resulting in US exports’ cancellations.
Except for the LPG demand from China, Asian buyers’ demand involving Indonesia and Japan is predicted to mark a drop.
When the winter in Japan ends, the seasonal demand would be further reduced, pressuring imports.
Steady LPG demand
Additionally, India’s LPG demand is forecast to hold steady during the coming months.
According to S&P Global Platts, the LPG shipments from the US to Asia are at steady rates for February, while are estimated to be at 1.8 million-2.0 million mt during March.
Virus affected the global market?
On the whole, coronavirus has not only affected people’s health but it has become a challenge for China’s crude oil, iron ore and coal imports, with many Chinese ports struggling to resume operations.
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Source: Safety4Sea
