CP in April, 2024 : 617.5 USD/t (- 17.5 USD from March)
C3 : USD 615 (- 15 USD from March) / C4 : 620 (- 20 USD from March)
CP price in April fell below March CP prices because in the Middle East market, the winter demand season has come to an end, supply is plentiful, and the supply-demand balance has eased.
But the reason why CP prices did not fall as much as expected in mid-March was due to support from new demand from PDH plants in China and rising crude oil prices.
Due to high naphtha prices, demand for butane as an alternative to petrification was expected to grow, but the demand was sluggish.
On the other hand, WTI increased by approximately USD 3.9 per barrel in March compared to the February average due to crude oil production cuts in Saudi Arabia and lower refinery operation rates due to attacks on Russian oil refineries by Ukraine.
In the end, the CP price reduced from March at – 17.5 USD/t, propane 615 USD/t, butane 620 USD/t, and the price difference between propane and butane is 5 USD/t.
Our view on future CP trends is expected to decrease in May because the supply and demand trend is easing as LPG plants in each country complete regular repairs and winter demand ends. (Reference Material：ENEOS GLOBE Weekly Report, Astomos Energy Monthly Report, EIN)
※Our view is only our opinion and do not guarantee CP trends.
