CP in January, 2024 : 625 USD/t (＋ 10 USD from December)
C3 : USD 620 (＋ 10 USD from Dec) / C4 : 630 (＋ 10 USD from Dec)
CP prices in January rose from December prices. The price increase is due to the arrival of a cold wave in the Far East, resulting in lower temperatures and an increase in consumer LPG demand. Demand for butane for petrification increased due to the rise in naphtha prices. Due to restrictions on ship passage through the Panama Canal because of the drought, demand for LPG produced in the Middle East has increased as a substitute for LPG produced in the United States. On the other hand, due to the increase in US crude oil inventories, the December WTI average was approximately USD 4.94 lower than the November average. In the end, the CP price increased by + 10 USD/t from December , propane 620 USD/t, butane 630 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 rise slightly in February because there is a rise in consumer demand due to falling temperatures in the Far East area, concerns about a decrease in LPG supply due to scheduled maintenance in the Middle East from January onwards, as freight rates continue to rise due to restrictions on the number of ships passing through the Panama Canal, which will benefit LPG from the Middle East destined for Asia.
(Reference Material：ENEOS GLOBE Weekly Report, Astomos Energy Monthly Report)
※Our view is only our opinion and do not guarantee CP trends.
