topmamegames| LPG water levels rise in the rainy season: freight rates increase and landing costs rise. The styrene market sentiment is weak but there is limited room for short-term decline

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The water level of Lake Gatong rises during the rainy seasonTopmamegamesTight traffic on the Panama Canal led to an increase in VLGC freight and an increase in LPG landing costs. Styrene market affected by Lianyungang delivery mood is weak, short-term falling space may be limited.

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Freight increases in LPG market due to seasonal rainy season

Recently, as the Gatong Lake enters the rainy season from May to November, the water level continues to rise and is expected to approach the level of the same period in 2020. As a result, the Panama Canal Authority has allowed dry bulk carriers to pass through since mid-May, causing congestion at the gates and simultaneous increases in VLGC auction fees and freight charges, further pushing up landing costs.

The price fluctuation of styrene market is affected by the relationship between supply and demand

Yesterday, Jiangsu styrene market closing price fixed at 9300-9330 yuan / ton. Due to the lack of reference to the futures market, the reduced enthusiasm of the market, coupled with the decline in night trading prices on the 10th, had an impact on the trading price on the 11th. Nevertheless, the small increase in the price of pure benzene has brought some support to the market.

LPG supply is stable and the number of warehouse receipts is low.

Although the arrival volume will remain at 600000 tons next week, there has been no significant increase in the supply side of LPG. The demand side still follows the off-season logic, and the alternation of start and stop of the PDH device makes the overall operating rate fluctuate greatly. Silbon plans to restart in mid-May, but Haiwei Petrochemical plans to shut down, resulting in limited demand for raw materials and a lack of effective drivers in the market fundamentals.

The pattern of removing styrene from storage continues, but the market pressure is gradually emerging.

The styrene market continues to maintain the de-stocking pattern, but the market is expected to increase supply pressure at the far end, superimposing weak expectations on the demand side, leading to a recent price correction. Judging from the current situation, if the price of pure benzene remains strong, styrene is expected to have limited room for short-term decline.