Quarterly Update on Global LPG Market
For the Quarter Ending September 2020
The Asian LPG demand became resilient in the quarter ending September 2020 as the industrial offtakes improved with plants operating at their full capacities to recover the slumped margins due to pandemic. As majority of Southeast Asian countries cater to their LPG demand through imports, stagnated imports due to Hurricane Laura in the U.S. shrouded the regional buying activities. LPG is anticipated to partially tumble in the coming months with China eyeing to shift the household consumption to piped natural gas. However, several traders are likely to stockpile LPG ahead of the winter season under fears of supply shortage that can interfere with consumer sentiments.
Outlook for LPG considerably improved in August with its increased preference over Naphtha as an industrial feedstock due to the sudden rebound in the Naphtha values. However, with Propane-Naphtha spread decreasing by the end of September, total imports of Northwest Europe showcased a prominent drop by over 10 per cent as compared to August. The fall in offtakes of LPG as a petrochemical feedstock was primarily due to its high prices causing manufacturers switch to other alternative to protect their margins. Furthermore, resurgence in coronavirus in early September has raised serious concerns over the prevailing demand uncertainties in the next quarter.
As many Middle Eastern countries buoyed on increasing the supply of LPG for power generation systems amidst the aggravating heat of August, several companies including ADNOC considerably increased the production output with no substantial increment in the trade flows. The company deviating from its usual service allowed advanced stock purchasing on increased demand from importers. ADNOC agreed to the nominations granting advanced local dates for consecutive two months starting October. Traders perceive this as a smart move that would set the middle east fuel market at optimum and organized inventory levels.
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Company-wise installed capacity, production volume and plant operating efficiency is captured directly from manufacturers. Import and Export volume is captured from government sources and demand for LPG is calculated considering the production, import, export and inventory-levels on the country and regional level markets.
LPG price is correlated with the price trend of its feedstock crude oil along with the demand from end use industries like automotive, aerospace, chemical and petrochemical.
Basic details and information on financial performance of leading global players in LPG market is presented in a visually captivating manner. Expansion plans and the company’s strategy is also captured to understand the vision and mission of the company to help understand the areas where companies need to focus more.
News & Deals
Daily updates on industry-specific and product-specific news, exclusive primary-based news capturing plant shutdowns/outages/closures, capacity expansions, operating rates, insights on demand-supply situation, awarding of technology licenses, new product launch and deals specifying mergers and acquisitions, strategic investments and disinvestments, to help players capitalize on market opportunity.
ChemAnalyst gathers information through primary research surveys conducted with various LPG manufacturers, spread across domestic and international market, suppliers and dealers/distributors to gain insights into value-chains and demand-supply scenario to assess the market situation. Thorough study of company’s annual reports and secondary sources such as exhaustive search on credible paid databases, including our internal database is done to verify the information. All the collected information is analyzed, evaluated and presented in chronological order to depict a meaningful and clear picture of the concerned market.
Our dedicated team of industry experts comprehensively monitors and analyzes various aspects of the Global LPG market. The team analyzes various industrial segments, strategic viewpoints and provides an analysis of the industry’s performance in the long run. This would enable our clients in efficiently plan their future investments, mitigate risk, understand the cost dynamics and strike out a balance amidst market volatility.
Critical examination of the impact of COVID-19 pandemic on the global supply chains and shift in demand patterns with change in buying behavior of consumers across the globe.
Several ongoing development projects across industries are tracked, followed by the details of major projects in the development stage, which can positively or negatively influence Global LPG market.
Pricing is captured through exhaustive primary interviews with domestic and international manufacturers, traders and importers and customers on daily, weekly, monthly and yearly basis.
Finally, region-specific markets for LPG are analyzed and region-wise demand pattern is tracked.
Liquified Petroleum Gas (LPG) is a flammable hydrocarbon gas commonly used as a sulfur free, non-toxic fuel. It is composed of butane and propane and can be stored in bulk tank and bottle gas form. The easy storage of LPG makes it a highly portable and versatile energy source for industries where piped gas supply is not available. It is preferred over several other energy fuels since it burns with lower carbon and sulfur emissions and thus is environment friendly. LPG is commonly utilized in process industries in order to fuel the boilers for generating steam and boiling water. It is also majorly used as a household cooking gas due to its high flash point and lower greenhouse emissions. LPG is produced by refining natural gas or crude oil which are exclusively obtained from fossil fuels. The product is stripped during natural gas processing from wet natural gas stream as a co-product from crude refining. LPG is stored as a liquid under moderate pressure and is then transported within LPG cylinders.