29th June 2018
We have seen increased activity in North West Europe this week and most of the earlier reported prompt (smaller) coasters are employed into beginning of July. UK Coast has been rather busy with exports further south and there are talks around butane exports from Scandinavia prior the weekend. Most of the relets from last week have found employment, either by own program or with a little help from the spot market. Rates in NWE are strengthening as supply of ships is rather limited. Larger coasters follow same trend with stronger employments compared to last week. We will see more of the larger semi-ref- and pressurized vessels being open from start/mid next week. The Mediterranean is quieter where most volumes are being covered by own tonnage
The pressurized market in the East has slowed down further this week. In the C4s sector, Chandra Asri has re-opened sales tender of two July C4 Raffinate cargoes in 2nd half July. Tender result was not yet announced at the time of writing. Chandra Asri has already withdrawn the two cargoes last week due to unfavourable pricing. More C4 raffinate exports from Southeast Asia might be expected next week. However, Chinese buyers’ interest remains low due to continuously weak MTBE market, which could restrict imports into China. In terms of propylene, S-oil failed to produce on-spec propylene from their plant after an expansion completed in June 2018. Same has resulted in more than 5 cancellations on July shipments. The July propylene market sentiment is further weakened by the soft PP price as well as lengthened domestic China supply caused by downstream plant disruptions, which resulted in decreased demand for imported propylene. Going into next week, we expect a longer shipping market for 1st half of July, both in Southeast Asia and Far East with no clear sign of market recovery.
Time Charter Fixtures
No Time Charter Fixtures
Sale and Purchase/New Buildings
Messrs EA Temile Development Corp of Nigeria have announced an order for a single 23,000cbm, fully refrigerated newbuilding at Hyundai Mipo Dockyard. The vessel is backed by long-term employment from Nigeria LNG (“NLNG”) and is scheduled to deliver in Q1 2020. The Owners are also holding an option for an additional vessel
The outcome of the sale process for the 35,000cbm, 2008 built SANKO INDEPENDENCE & SANKO INNOVATOR is not yet clear but rumours have suggested that the Owners have received offers in the region of US$ 14.5m per vessel.
The back-and-forth between BW LPG and Dorian LPG continues with little progress in the way of a take-over/merger. Opinion remains split on whether there will be an eventual deal but the consensus among fellow owners seems to be that consolidation will have a positive impact on the market.
No Scrapping news
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