CP in July, 2025 : 560 USD/t (- 25 USD from June)
C3 : USD 575 (- 25 USD from June) / C4 : 545 (- 25 USD from June)
The July CP decreased by USD 25 from June, as the Northern Hemisphere entered the summer off-season and overall LPG consumption declined.
In particular, demand for Middle Eastern LPG in the Asian market remained weak, and several actual transactions were made at prices lower than the official CP levels.
This gap between actual trading prices and the CP is considered one of the factors that led Saudi Aramco to reduce the CP for July.
Additionally, demand for butane in the petrochemical sector remained sluggish. Many petrochemical plants in Asia continued to favor naphtha as a feedstock, resulting in limited use of LPG.
Furthermore, the armed conflict between Israel and Iran heightened geopolitical uncertainty in the Middle East. This led to a temporary shift away from the Strait of Hormuz, slowing down trading activity in the region and prompting sellers to offer at lower prices to secure deals. From our perspective, the August CP is likely to show a slight decline, as summer demand remains subdued and the geopolitical situation in the Middle East appears to be stabilizing.
(Reference Material：Eneos Weekly Report, Astomos Energy Monthly Report, EIN, RIM)
※Our view is only our opinion and do not guarantee CP trends in the future.
