China’s propane prices up on higher Aug offer from Saudi Aramco

03 August 2012 11:55  [Source: ICIS news]

SINGAPORE (ICIS)--Propane spot prices in China have risen by yuan (CNY) 1,225-1,300/tonne ($192-204/tonne) from a month ago after key regional supplier Saudi Aramco increased its August contract offer, market sources said on Friday.

Saudi Aramco raised its August propane contract price by $200/tonne (€164/tonne) to $775/tonne FOB (free on board) on 31 July, traders said.

The spot prices of propane were CNY6,550-6,700/tonne in east China and CNY6,300-6,400/tonne in Shandong on 3 August, up by CNY1,300/tonne and CNY1,225/tonne respectively from a month ago, according to market sources.

Market sources said that Saudi Aramco’s September contract prices are expected to rise further on firming crude prices, which will increase importing costs in China.

Most buyers are therefore increasing their purchases now, traders said.

“We predict that prices will rise further. So, we are speeding up our purchase now, otherwise, we may have to pay higher [prices later],” said a Zhejiang-based trader.

“Sales are fast these days,” said a Shandong-based trader.

($1 = CNY6.37)

($1 = €0.82)

 


By: Vivian Lv
+65 6780 4327



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