CP in February, 2024 : 635 USD/t (＋ 10 USD from January)
C3 : USD 630 (＋ 10 USD from Jan) / C4 : 640 (＋ 10 USD from Jan)
CP prices in February rose from January prices. The price increase is due to a severe cold wave has hit the United States since mid-January, leading to an increase in demand for LPG heating.
Demand for LPG from the Middle East increased as equipment at LPG terminals in the United States froze due to the cold wave, reducing operating rates and significantly reducing propane supplies. In addition, as naphtha prices continued to rise as they did last month, demand for butane for petrification increased.
WTI also increased by approximately USD 2 per barrel in January compared to the December average due to OPEC+’s voluntary crude oil production cuts and heightened geopolitical risks due to conflicts in the Middle East. In the end, the CP price increased by + 10 USD/t from January , propane 630 USD/t, butane 640 USD/t, and the price difference between propane and butane was 10 USD/t as same as last month. Our view on future CP trends is expected to decrease slightly in March because LPG heating demand is expected to decline as temperatures gradually rise, even though LPG supply is expected to decrease from January to mid-March due to regular maintenance of some LPG plants in the Middle East.
(Reference Material：ENEOS GLOBE Weekly Report, Astomos Energy Monthly Report, EIN)
※Our view is only our opinion and do not guarantee CP trends.
