Intra-NE Asia freights could fall further
3kt Korea/M.China rates declining since January
3kt Korea/M.China rates dropped 6% MoM in March, which was in line with Eastport Research & Strategy’s forecast. Chinese demand for petrochemicals remain weak with plants running at reduced rates amid high inventories and activities are still recovering in the country. PTA inventories exceeded 3mil mt in mid-March, about double of historical level (Platts). Country lockdowns across the globe to contain the virus outbreak and slowing global economies are likely to weigh on demand for Chinese finished products, affecting petrochemicals consumption in China. Intra-NE Asia freights are expected to continue its downward trend for the next three months.