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Indian LPG demand recovers as high stockpiles being drawn down: sources


India's LPG demand has been recovering since July, as inventories are drawn down from the highs seen after the pre-election stocking up in April and May, which had slowed imports, trade sources said this week.

One Indian importer said demand has "slightly picked up" last month compared with "negative growth" seen in June, adding that growth was estimated at around 9% year on year.

"We were able to liquidate the volumes in floating storage that have accumulated in the past few months," the importer said, adding that stocks had been high as demand ahead of and during the elections had not been as strong as expected.

Household LPG demand was also expected to grow over July to September ahead of and in preparation for the festive Q4 season, sources said.

To meet improving demand, Indian importers are expected to mainly focus on resuming normal or full volumes of term cargoes from Middle East suppliers, market sources said, after some term cargoes had been asked to be delayed to later months during the period of high inventory.

The importer said it was unlikely that spot purchases, via tenders or direct negotiations, would be repeated in the near future. Spot imports had been done occasionally between February and April via tenders ahead of the elections.