07 May 2012 11:12 [Source: ICIS news]
SINGAPORE (ICIS) -- Asian propane prices have declined to a six-month low because of excess supply since they started falling from early March, industry sources said on Monday.
The price of propane for delivery in the first half of June closed at $764.5/tonne (€581.02/tonne) on 4 May, the lowest since 21 October 2011, according to C1 Energy, an ICIS service in ?xml:namespace>
Prices started to fall on 5 Mar from $1,297.5/tonne, according to C1 Energy.
The oversupply of propane in
Producers in the
Qatar International Petroleum Marketing (Tasweeq) has at least two cargoes, Saudi Aramco about four cargoes and Petrochemical Commercial Corp (PCC) about four as well, the trader added.
These cargoes need to be purchased by Asian countries since producers cannot ship them to the West for arbitrage as prices are also weak in
Residential demand for propane in
“The price trend in
However, there are only four Asian companies with crackers which can use propane as a substitute for naphtha and propane accounts for only a maximum of 20% of the feedstock for these crackers, industry sources said.
($1 = €0.76)
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