Liquefied natural gas
The LNG market saw an overall quieter week, with prices lower across most routes, as market participants continued to monitor developments in the Middle East.
On the BLNG1 route between Australia and Japan, prices fell by US$1,667 on a week-on-week basis to settle at US$80,200 on the day. The Pacific market remained relatively balanced, with more cautious sentiment but steady consolidation activity.
The US Gulf-Continent route BLNG2 saw a more pronounced correction, falling by $11,900 to close at $92,500 on the day. Activity remained subdued throughout the week, as uncertainty surrounding future goods flows weighed on sentiment and gradually pressured interest rates.
Likewise, the price of the US Gulf-Japan BLNG3 line fell by US$11,200 on a weekly basis to settle at US$103,100 per day. Long-term economics fell as the market reversed some of the gains seen during a recent period of extreme volatility, dampening sentiment towards the end of the week.
In the time rental market, sentiment was mixed but broadly stable. The six-month rate rose by $500 to $101,400 per day, while the one-year rate fell by $234 to $80,033 per day. Off the curve, the three-year period rose modestly by $200 to $80,200 per day.
Liquefied petroleum gas
The LPG market fell this week as arbitrage economics weakened in the wake of recent developments in the Middle East. While activity remained positive, sentiment deteriorated as trade opportunities narrowed, putting downward pressure on freight rates across all major routes.
As for the BLPG1 Ras Tanura – Sheba line, it settled at $199.38. With TCE’s earnings closing at $194,459 on the day.
The BLPG2 Houston-Flushing route saw the largest decline in the Atlantic, falling $36.50 on a week-over-week basis to settle at $110.00. TCE earnings fell $48,468 to $119,975 on the day.
Likewise, the BLPG3 Houston-Chiba route corrected lower, falling $69.83 to end the week at $190.00, while TCE returns fell $51,263 to $101,151 on the day.
Source: Baltic Stock Exchange
