AlwaysFree: Baltic Exchange's Gas Report On May 12, 2023 - Week 19

According to the Baltic Exchange’s Weekly Market Roundups published on May 12, 2023, 

LNG

There has been some fixing activity on the spot with LNG. At the beginning of the week a 155 cbm vessel was fixed from Gladstone up to JKTC for mid-June dates in the high $40,000s. The market has since come down a touch, with rates falling to $43,262 on BLNG1g, a decrease of $6,764 on the week. There are further ships working cargoes at the moment, but rates are hovering around their bottom with expectations of a further fall very low.

Out in the Atlantic, rates moved in a similar direction. There have been several tenders floated and ships have offered in, although with many market players already with good coverage, there has been muted interest and rates are stagnated around the lower levels. For a BLNG2g run Houston-Cont a fall below $40,000 shows the lack of interest really as we published at $38,701. While a US-Japan BLNG3g also closed below the $40k mark at $39,811. Opinions between panellists for LNG have been split the last few weeks, with outliers suggesting a difference of opinion. This has now narrowed and most market players see the same levels achievable for what business is fixed.

LPG

The Middle East has continued its bull run, with rates rising just under $10.5 over the week to give a closing index publication of $90.143 (a daily TCEC earning return of $75,423). On Monday a rise of $7 in the index set the week off to a good start with market participants seeing bid/offers at ever increasing numbers. This has been the result of plenty of cargoes coming into the market, acceptances were out early on and this fresh interest gave credence to owners pushing higher who already had the bit between their teeth.

The US market faired almost as well but with a little less of a meteoric rise. Rates finished strong reversing some of the lack lustre sentiment of late, continued fixing against open cargoes and tenders being offered up has kept pressure on an ever-tightening position list and for BLPG3 Houston-Chiba closed at $138.714 a rise of more than $5.5 on the week. One vessel fixed for last decade June dates had options for China and Flushing from Houston at $138 and $82 respectively. We did not quite hit the mark of $82 with the index but with delays still in the canal and ships fixed for more long haul there is pressure still on requirements optionality, which is expected to push rates above the Baltic publication of $81.2 at the end of the week.

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