Oct propane, butane CPs within mid-range of expectations
Increase comes as Asian demand seen recovering
Saudi Aramco has set the October propane term contract price at $375/mt, up $10/mt from September, and the butane CP at $380/mt, up $25/mt from September, traders told S&P Global Platts Sept. 30.
Receive daily email alerts, subscriber notes & personalize your experience.
The CPs were in the middle range of traders’ expectations of $370/mt and $380/mt for propane, and butane between $375/mt and $385/mt.
October CP propane swaps closed Sept. 29 at $366.5/mt. Early on Sept. 30, October CP propane swap was notionally indicated at $367.5/mt and butane swap $5/mt above that, according to brokers.
October propane rose after holding steady for September versus August. Butane rose for the second month in a row, after three straight months of declines.
The latest increases come as demand was seen recovering in India and China, while North East Asia is facing a colder -than -average winter over December to February, which is expected to boost demand for heating.
Aramco had set the propane CP for October 2019 at $420/mt and butane at $435/mt, S&P Global Platts data showed.
Aramco’s CPs — which set the price of propane and butane lifted from the Saudi Arabian ports of Yanbu, Ras Tanura and Ju’aymah under term supply contracts — are closely watched by the market as they tend to set a base level for pricing most markets east of Suez.