CP in July, 2023 : 387.5 USD/t (- 57.5 USD from June)
C3 : 400.0 (- 50) / C4 : 375.0 (- 65)
The CP price in July continued to decline with last month. The reason for the decline is the slump of demand in consuming countries such as India and China due to the low demand period. In the Middle East, due to soaring freight costs, importers were reluctant to procure products on a spot basis, caused inventories to build up and pushed down the market. In addition, the financial authorities in Europe and the United States suggested additional interest rate hikes and inflation made the economy cool, which increased uncertainty about the future of energy demand and caused crude oil prices to fall.In the end, the CP price fell by 57.5 USD/t, propane at 400 USD/t, butane at 375 USD/t, and the price difference between propane and butane became 25 USD/t.
Our view on future CP trends is that the current price will rise in August due to the decrease in LPG supply due to the additional cut in crude oil production in Saudi Arabia from July and concerns about tight supply and demand ahead of the summer driving season in the United States. . (Reference: Energy intelligence Network, ENEOS GLOBE Weekly Report, Astomos Energy Monthly Report)
