CP in September, 2023 : 555 USD/t (+ 90 USD from August)
C3 : USD 550 (+ 80) / C4 : 560 (+ 100)
CP price in September rebounded following August due to the rise of crude oil price. The major factors contributing to the increase were OPEC’s coordinated crude oil production cuts and Russia’s crude oil export and production cuts. Demand for propane increased due to the start-up of 11 new PDH plants in China, while the price of butane increased due to a recovery in the market due to the high price of naphtha and an increase of purchases in preparation for the demand of gasoline blends in the winter season in Europe. For WTI, the August average is approximately $5.4 higher than the July average. In the end, the CP price increased by 90 USD/t, propane at 550 USD/t, butane at 560 USD/t, and the price difference between propane and butane became 10 USD/t.
Our view on future CP trends is predicted to rise because OPEC will continue to cut crude oil production in September, demand for China’s PDH will increase, and purchases in Europe are expected to continue in preparation for the winter gasoline blend demand. (References：Energy intelligence Network, ENEOS GLOBE Weekly Report, Astomos Energy Monthly Report).
