07 September 2012 17:30 [Source: ICIS news]
LONDON (ICIS)--Rising European LPG prices are deterring buyers, sources said on Friday.
Propane barges are assessed at $1,015-1,020/tonne (€802-806/tonne) FOB (free on board) ARA (?xml:namespace>
“The lack of supply is a problem, but CIF [cost, insurance and freight] prices are too high,” a propane cargo trader said. “A ship was offered here [in
“There’s a lack of availability, prices are very high. There’s no product around, across the board,” a second LPG trader said.
An LPG barge trader said: “There’s no product around, nothing in storage and demand is picking up, especially from
A butane cargo trader said: “It’s very tight, there’s a lack of supply. There’s been maintenance in the
Worse still, propane prices have been pushed above those of rival feedstock naphtha, rendering the latter the first choice for petrochemical buyers.
"They'll [petrochemical buyers] use naphtha," a naptha trader said.
Butane prices are understood to be at parity with naphtha.
September normally marks the start of the heating fuel restocking season. However, with prices elevated and insufficient volumes available, the outlook for LPG is unclear.
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