CP in May, 2026 : 775 USD/t (± 0 USD from April)
C3 : USD 750 (± 0 USD from April)/ C4 : 800 (± 0 USD from April)
The Saudi Aramco CP for May 2026 was set at USD 750/ton for propane and USD 800/ton for butane, unchanged from the previous month.
Regarding the current market environment, the Strait of Hormuz remains effectively closed due to escalating tensions
between the United States and Iran, and LPG supply from the Middle East continues to be constrained.
Furthermore, damage to facilities in Qatar has raised concerns over future supply reductions, and supply-demand conditions remain tight, particularly in India and Southeast Asia.
At the same time, rising naphtha prices have led to increased demand for butane as an alternative feedstock, while higher freight rates have also contributed to upward pressure on prices.
On the other hand, for May, Saudi Aramco’s supply conditions remained largely unchanged from April.
In addition, there were signs of easing demand in some regions and progress in alternative procurement (such as from the United States and Russia).
As a result, the CP was ultimately settled at the same level as the previous month.
Looking ahead, the market is expected to remain unstable due to the prolonged closure of the Strait of Hormuz,
ongoing geopolitical uncertainties in the Middle East, and persistently high crude oil prices.
Meanwhile, although U.S. inventories are at a high level and supply supplementation is progressing to some extent—leading to expectations of a slight softening in the June CP-there remains a possibility of renewed price increases depending on geopolitical developments. Therefore, the outlook continues to be highly uncertain.
(Reference: Eneos Weekly Report, Astomos Energy Monthly Report, RIM, EIN)
Please note that the above outlook represents our view and does not guarantee future CP movements.
