Saudi Aramco raises Nov propane contract price, cuts butane price

31 October 2011 06:26  [Source: ICIS news]

SHANGHAI (ICIS)--Saudi Aramco has increased its propane contract price for November shipment while reducing its butane contract price, two Asian liquefied petroleum gas (LPG) buyers said on Monday.

Saudi Aramco increased its propane selling price by $15/tonne (€11/tonne), or 2.04%, to $750/tonne FOB (free on board). It reduced its butane selling price by $5/tonne, or 0.62%, to $810/tonne FOB. Both prices are for cargoes loading in November.

“Propane is higher because demand for propane typically rises in winter,” said an importer in northeast Asia. “The butane price is likely to have been reduced because of weak naphtha values.”

Soft naphtha prices reduce butane’s competitiveness as a substitute for naphtha, the importer added.

Saudi Aramco, which is based at Dhahran in Saudi Arabia, is a major LPG supplier to Asia.

LPG, a heating and cooking gas, is used by olefins producers as a substitute for naphtha.

($1 = €0.71)

By: Trisha Huang

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