Fearnleys Weekly - Gas

Chartering

During the course of the last week, the East has not been very busy for the VLGCs. We have said this a few weeks ago (and we were proven wrong), but we claim again that the East market is at the bottom in current cycle. The West shipping market has improved somewhat the last week on the back of scarce August and early September vessel availability. Time being, it seems there will be more cargoes lifted in USG in August compared to July and we believe rates will gradually improve. The VLGC freight market is vulnerable to international LPG prices/demand and has become dependent on inventory levels of LPG in the US Gulf (and subsequent FOB pricing) which is published weekly on Wednesdays. There are more new vessels than new LPG production/exports in 2017 and the current rate misery is more a result of closed arbitrage than fleet (over-) capacity.

Activity level

COASTER 15-23,000 cbm 82,000 cbm
Increasing Low Firming

Rates

* Excl. waiting time, if any
SPOT MARKET (usd/month)* This week Last week Low 2017 High 2017
VLGC / 84,000 180,000.00 210,000.00 180,000.00 765,000.00
LGC / 60,000 380,000.00 350,000.00 350,000.00 500,000.00
MGC / 38,000 420,000.00 420,000.00 420,000.00 550,000.00
HDY / 22,000 370,000.00 370,000.00 370,000.00 550,000.00
ETH / 10,000 445,000.00 445,000.00 445,000.00 540,000.00
SR / 6,500 400,000.00 400,000.00 400,000.00 450,000.00
COASTER Asia 195,000.00 195,000.00 190,000.00 195,000.00
COASTER Europe 170,000.00 160,000.00 110,000.00 195,000.00

LPG/FOB prices (usd/tonne)

Propane Butane ISO
FOB North Sea / ANSI 384.50 378.50
Saudi Arabia / CP 420.00 460.00
MT Belvieu (US Gulf) 377.08 389.02 415.36
Sonatrach : Bethioua 400.00 410.00

LNG

SPOT MARKET (usd/day) This week Last week Low 2017 High 2017
East of Suez 155-165'cbm 40,000.00 40,000.00 25,000.00 40,000.00
West of Suez 155-165'cbm 43,000.00 43,000.00 29,000.00 52,000.00
1 yr TC 155-165'cbm 34,000.00 33,000.00 31,000.00 35,000.00

Sales and purchases

Vessel Cbm Type Built Buyers Price Misc
No reportable sales this week