LPG buyers in Southeast Asia are bracing for lower Saudi Contract Prices, says an article published in SPGlobal.
Saudi Contract Prices for propane and butane
- Saudi Aramco announced May term CPs by April 30, traders’ initial expectations for propane ranged between $460/mt and $500/mt, and butane $20-$30/mt below that.
- Saudi April propane CPs were set at $560/mt the first drop after nine-straight months of increases, while butane was at $530/mt, down after eight consecutive rises.
- Saudi May CP propane swap was indicated April 22 at $475/mt, versus $474/mt valued previous session, while butane was indicated $22/mt below propane.
Different market sources on CPs
Qatar has been offering and selling spot cargoes, the latest being a tender offering 45,000 mt of propane for May 22-29 loading.
Refineries in Vietnam have recently offered pressurized LPG cargoes to international buyers via tenders to clear surplus amid tepid domestic take-up.
One market source said, “Binh Son and Nghi Son refineries, as well as PV Gas, are trying hard to sell, but may receive no buying offer. All gas companies are facing losses because of the ever-falling CPs. Gas inventory is generally very high because retailers and distributors minimize taking gas volume from gas companies, as everyone in the market knows well that May CPs will be lower than April CPs.”
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Source: SPGlobal
