Japan LPGas Association reported that LPG stocks in Japan increased for the third-straight month in July. The stocks registered a rise of 4.03% as compared to June to 1.907 million mt. The rise is attributed to higher imports of 26.7% month on month to 958,000 mt at the end of July. This rise marks a rebound from a downtrend observed since March, the association’s data revealed.
The data also showed import terminal running stocks or supplies reporting an increase by 33% month on month to 310,000 mt in July, after it rose 55.3% to 233,000 mt in June.
While total LPG stocks decreased 5.2% year on year, propane stocks rose 11.3% month on month to 1.218 million mt in July making propane the number one among other inventories. Butane, on the other hand, saw a continued fall of its stocks, down 7.3% to 689,000 mt, according to the data.
The report further states that the total demand for LPG in July surged 20.1% month on month to 1.149 million mt, recovering after sliding 17% in June to 957,000 mt.
The rise is attributed to the rise in electricity demand to 118,000 mt in July, as the cooler weather continued in Japan leading to more use of hot water heaters, though air conditioners’ demand remained weak.
The industry was worried over high freight rates on the Persian Gulf-to-Japan route, which registered a record peak of around $140/mt in late July. Cargoes had a difficult time moving from the Middle East on an FOB basis. But traders opine that cargoes from the Atlantic Basin filled up the gap.
More on LPG trade patterns will be discussed at 9th LPG Trade Summit opening on 11-13 November, 2014 in Dubai.
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