Weekly Market Features

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PDH

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Challenges ahead for China’s PDH sector as competition intensifies – Week 13 2025

Mar 31, 2025

China's propane dehydrogenation (PDH) sector saw a robust start to 2025, with propane demand for PDH operations in Jan-Feb 2025 maintaining levels comparable to those observed at the end of 2024 [...]

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Asia

Overview of Asian sentiment post international conferences – Week 12 2025

Mar 24, 2025

In March, NGLStrategy presented their views at two international conferences in Asia: the LP Gas Seminar in Tokyo, Japan, and the 30th China LPG International Conference in Guangzhou, China [...]

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Steam Cracking

The slow death of the European naphtha cracker – Week 11 2025

Mar 17, 2025

The recent and upcoming closure of naphtha crackers in Italy, France and the Netherlands highlights the accumulative effect of years of losses. According to our models, propane cracking margins have averaged $155-160/t ethylene, and margins for cracking imported US ethane have averaged $375-380/t ethylene – both more than sufficient to cover fixed costs as well [...]

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US

Can the US increase LPG production to meet the recently announced additional export terminal capacity by 2029? – Week 10 2025

Mar 10, 2025

The recent US export terminal announcements have sparked a key question: Can the US realistically export enough volumes to fill the upcoming terminal capacity, and can the global market absorb this supply? While this is a complex issue, we will simplify the assessment by focusing on US natural gas production and GPM (gallons per mcf) levels [...]

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Petrochemicals

European ethylene producers hope for higher rates in 2025 – Week 08 2025

Feb 24, 2025

Steam cracker permanent closures in 2024 and 2025, the temporary idling of some capacity and a small increase in ethylene derivative consumption, provide producers with hope that effective cracker operating rates will edge up in 2025 [...]

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Ethane

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The next wave of new ethane projects is expected from 2025 onwards – Week 07 2025

Feb 17, 2025

Ethane developments are on the cusp of a number of expansions for both supply and demand. Additional steam crackers are being added particularly in Asia which will use imported ethane as a feedstock, providing petrochemical players with an efficient ethylene production [...]

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US

New US LPG Terminal to Bolster Future Export Capacity – Week 06 2025

Feb 10, 2025

A significant development in the US LPG market was announced last week, as MPLX and ONEOK confirmed a 50/50 joint venture to construct a new LPG export terminal in Texas City. Designed with a capacity of 400,000 barrels per day (b/d), the terminal is scheduled to commence operations in early 2028 [...]

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Canada

Tariff tensions: Evaluating the U.S.-Canada propane trade landscape – Week 05 2025

Feb 03, 2025

The first “black swan” event of the year emerged this week as the U.S. government announced its intent to follow through on pre-election promises, imposing import tariffs on China, Canada, and Mexico [...]

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Tariffs

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Impact of tariffs on the Polish LPG market – Week 04 2025

Jan 27, 2025

At the end of December 2024, additional tariffs came into play in Poland with regards to receiving LPG volume from Russia. Since the start of the conflict, the rise in seaborne trade has seen a rise from around an average of 50,000 tons per month of LPG to nearly 90,000 tons a month in 2023 and 2024 according to NGLStrategy’s ship tracking analysis [...]

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Shipping

VLGC market faces oversupply risks amid VLAC additions and ammonia project delays – Week 03 2025

Jan 20, 2025

The rapid growth of the VLAC orderbook and delays in ammonia/hydrogen export terminal projects have become key concerns in the LPG shipping market over the past year [...]

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Petrochemicals

Steam-cracking margins turned negative in NW Europe at the end 2024 and early 2025 – Week 02 2025

Jan 13, 2025

Q4 2024 saw margins for ethylene producers utilising propane as a feedstock significantly deteriorate in Northern Europe, reaching an average of just $15/t in Dec-24. Strengthening feedstock prices and global sluggish demand for ethylene remain the key indicators for a potentially difficult January for many operators [...]

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US

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Propane prices are affected by weather, but other factors could curb the impact – Week 01 2025

Jan 07, 2025

A cold spell in the US has driven Mont Belvieu prices higher for January, pushing propane supply chain economics to marginal levels and compressing terminal and shipping costs. The key question is how much further the cold weather will impact propane prices and the supply chain [...]

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