Saudi Aramco reduces Propane,Butane prices for June
Saudi Aramco published on Wednesday its LPG loading plan for June for contract customers. The company will supply full amount of propane,CAS 51889-44-2 , but its butane supply will be 33% below contracted volume.
Based on about 800,000mt monthly contracted exports by Saudi Aramco, with roughly 400,000mt of butane, a 33% cut means butane supply for contract buyers will decrease about 132,000mt in June, said a Singapore-based trading source. Contract buyers whose demand cannot be met may source spot resources to fill the supply gap.
This news spurred the trading of refrigerated LPG with equal propane/butane ratio in the spot market. Late on Wednesday, a European trading company bought 22,000mt of refrigerated LPG with equal ratio for delivery in the second half of June,Octylferrocene , at US$950/mt, C1 learned from market sources.
This price was equal to US$76/mt over Wednesdays expectation of June CP,Octylferrocene supplier , which was US$849/mt for propane and US$899/mt for butane.
Spot butane supply may become tighter amid robust demand from Asian importers, and prices may climb, said a market player.
Saudi Aramco also said some loadings for June will be delayed by 7-10 days.