The LNG market faces a slow period despite hopes for a winter boost, with Pacific and Atlantic rates continuing to fall. The LPG market also saw declining rates and minimal activity, with tonnage buildup affecting pricing. Long-term discussions for LNG remain active, but both markets experience sluggish conditions, reports Baltic Exchange.
LNG
As the weather in the UK moves decidedly into autumn and the winter is fast approaching, there had been hopes the LNG market would see the typical winter boost. However, with no sign on the horizon of a rate rise coming, there are worries it could be a rather slow period still for LNG, at least when it comes to spot activity. Gas Tech is just around the corner and those gearing up for a busy few days will be keen to see what the LNG market has been working on.
In regard to the rates last week, there hasn’t been much to report. The Pacific market has continued its fall and BLNG1 Aus-Japan on the 174cbm fell by $4,000 to $73,000 while the 160cbm fell to $58,800. Across the Atlantic BLNG2 Houston-Cont saw a minimal fall closing at $58,800 and $45,900 for the 174cbm and 160cbm, respectively. BLNG3 Houston-Japan moved least of the three but still lost some value with a close of $78,500 on the 174cbm and $62,500 on the 160cbm.
Period for longer term remains active and there are discussions taking place for 10 years plus, but the Baltic print of six-month period fell to $91,300 while the one-year term finished down at $75,700 and the three-year closed at $81,600.
LPG
The sluggish market has continued last week, with few reported fixtures and rates beginning to fall on the back of sentiment and the lack of open interest. Tonnage remains longer and with few cargoes working, the rates have reacted as expected falling by several dollars. BLPG1 Ras Tanura-Chiba fell by $4.667 from a high of $64 to $59.333 pushing TCE Earnings down, as well by $4,729 to an equivalent of $8,754/day.
Across the Atlantic, the market wasn’t much busier with very little being reported and open tonnage, although tighter than in the East, beginning to pile up rates took a hit. BLPG2 Houston-Flushing dropped by $2.75 to $64.125 while the TCE earnings fell to $65,860. BLPG3 Houston—Chiba lost the most last week falling from a high of $118.833 to $114 and TCE earnings falling to a close of $45,361.
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Source: Baltic Exchange
