The steep fall in VLGC spot rates has continued this week as the Asia market stayed quiet.
The Baltic Exchange's VLGC index was down 12.6% from the day before and off 49% from a month ago at $25.71 per tonne or $12,503 per day.
The Asian VLGC market has remained inactive bar a few companies testing the market for freight ideas for early July loadings in the Middle East, said investment bank Fearnley Securities.
"Most players are still awaiting Saudi acceptances, but sentiment remains in the doldrums with both owner and trader-controlled tonnage making up a long tonnage list," it added.
Shipbrokers have noted some delays in India, which would normally have a positive effect on the market.
No prospect of rate rise
But Fearnley analysts Espen Landmark Fjermestad, Peder Nicolai Jarlsby and Ulrik Mannhart said: "However, given the lengthy availability list and production cuts there are no expectations for rates to turn."
A similar story is playing out in the western market, where earnings are on a par with the Baltic assessment.
"The position list remains meaningful with several available relets which are likely to add further pressure on the market into the summer months," Fearnley said.
"One potential aid to rates is the weak contract and freight (CFR) market and low cost of waiting relative to the Panama Canal fee. It seems that most vessels should be routing via the Cape, though it remains highly uncertain if this is enough halt the drop in rates."
In the US, arbitrage opportunities are still seen as largely unworkable.
The analysts said: "On a positive note, production is coming back gradually (at least for now) with US production rising for the third week in a row.
"Still, it is challenging to see a strong recovery near-term with production trajectory both in the Middle East Gulf and US remaining highly uncertain."
Last week, brokers had identified about 15 free LPG carriers constituting an "overhang" from June.
Cleaves Securities had assessed rates as down 17% on the week at $9,600 per day, edging closer to operating cost levels of between $7,000 and $8,000.
Rates had been riding high at $60,000 per day in April.
