01/06/2011
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.
