The Baltic Exchange: Gas report - Week 27
The Baltic Exchange: Gas report - Week 27
LNG
The LNG spot market has had a little break from the frenetic fixing of the week prior. Rates for all three routes have been stable with minor fluctuations on all three, resulting mainly from the fluctuations of fuel prices rather than any market activity. For Aus-Japan there was a minimal rise of $349 on the week to close out at $67,875. It was reported that the Gladstone LNG plant shipped a total of 28 cargoes in June, a rise of 4.8 %, with most of this volume heading to China. The majority of this is covered via term business so had little effect on spot rates but movement is nonetheless good and sentiment is stable while brokers and owners look towards the upcoming winter market for indicators of potential spikes in freight.
The US saw a similar rise of LNG export with the EIA reporting that 27 LNG carriers departed the US plants in the first week of July, an increase of six from the week before. This rise in export has not affected the indices with the rates staying very stable. Moving between -$93 and $370 over the week for BLNG2g and BLNG3g respectively, we published at $70,591 for BLNG2g Houston-UKC and $84,261 for Houston-Japan. There has been more focus on the period again where term rates have softened slightly on a one year basis while multi-month ideas gained some traction as traders make sure they have coverage for the winter ahead.
 LPG
The gas market has had quite a ride this week. Out in the East there was a steady fall where BLPG1 Ras Tanura-Chiba lost $19.643 over the week to close below $100 at $99.643, which gave a daily TCE earning of $85,358, over $20,000 less than at the start of the week. A relatively lengthy tonnage list was not used up enough by the cargoes working and there now seems some overhang looking into August. Rates did take a hit, but it was not unexpected as a correction seemed due while the summer months have been performing remarkably well, but this fall seems to have found its footing and rates have stabilised.
For the US market it was a little more topsy turvy. An initial loss of $19.715 from the weeks start till midweek had many market participants worried but a rally of fixing and cargoes put a hold on the fall regaining a whole $10 to close at $174, which gave a daily TCE earning of $97,585. Brokers have reported several uncovered cargoes, and a tonnage list that remains tight. This coupled with continued delays in the Panama Canal could rally rates more and the week ahead looks interesting, even while opinions on the direction of the rates is divided.
Similar News
