CP in October, 2023 : 607.5 USD/t (+ 52.5 USD from September) C3 : USD 600 (+ 50) / C4 : 615 (+ 55)
CP prices in October continued to rise as in September. The main factors behind the increase are Saudi Arabia’s decision to extend its crude oil production cut of 1 million barrels per day and Russia’s decision to extend its crude oil production cut of 300,000 barrels per day until the end of 2023.
Concerns about a global oil supply shortage pushed up the market. On the other hand, imports increased as India waived import duties and lowered the price of household LP gas cylinders. WTI in September is approximately $8 higher than the August average. Demand for butane increased sharply due to high naphtha prices, and the price of butane became noticeable. In the end, the CP price increased by 52.5 USD/t, propane at 600 USD/t, butane at 615 USD/t, and the price difference between propane and butane became 15 USD/t.
Our view on future CP trends is predicted to rise in November because crude oil production cuts continue in Saudi Arabia and Russia in October, demand for Chinese PDH increases.※Our view is only our opinion and do not guarantee CP trends.
