CP in August, 2023 : 465 USD/t (+ 77.5 USD from July)
C3 : 470.0 (+ 70) / C4 : 460 (+ 85)
CP price in August rebounded in line with the increase of crude oil prices . Factors for the increase CP price include the continuation of Saudi Arabia’s voluntary oil production cuts in August, Russia’s crude oil supply cuts, and concerns about a global supply-demand imbalance due to China’s economic stimulus measures. WTI averaged about $5 higher in July than in June. In the end, the CP price increased by 77.5 USD/t, propane at 470 USD/t, butane at 460 USD/t, and the price difference between propane and butane became 10 USD/t.
Our view on future CP trends is that, although it is a period of low LPG demand, we expect that Saudi Arabia’s voluntary oil production cut will continue in August, freight rates will continue to rise, and congestion in the Panama Canal will continue. Prices are expected to rise in September as well.
