Japan's LPG stocks as of end-January dipped 1.23% month on month to 1.847 million mt from 1.870 million mt in December, the second straight monthly decline, as winter demand also prompted higher imports, data from the Japan LPGas Association showed Tuesday.
But stock levels were up 9.3% year on year, the data showed.
Japan's LPG imports rose 6.7% last month to 1.116 million mt, after jumping 27% from November to 1.046 million mt in December.
The country had 1.378 million mt in domestic LPG demand in January, down nearly 2% from December, when demand surged to 1.406 million mt.
Japan's winter electricity demand season normally lasts from December to March. Bouts of severe icy weather in February prompted state utilities to continue buying LPG, which is costlier than other fuels such as direct-burning crude, fuel oil and coal.
January inventories were driven lower by propane stocks shrinking 9.5% from December to 1.042 million mt and butane stocks down 12.1% to 805,000 mt, the data showed.
Import terminal running stocks -- supplies that refiners or importers can draw on -- fell 8.4% from December to 163,000 mt in January, the third straight monthly drop.
The government-mandated stocks, which account for the lion's share of LPG stocks held in private inventories, totaled 1.558 million mt in January, down 0.8% from 1.57 million mt at end-December, the data showed.
