25 January 2013 17:36 [Source: ICIS news]
LONDON (ICIS)--Spot European propane values increased on Friday as a result of tight supply, according to sources.
Large propane cargoes are assessed at $860-870/tonne (€645-653/tonne) CIF (cost insurance freight) NWE (northwest Europe), up $20/tonne week on week.
Sources say that cargoes from the US expected to arrive in Europe have instead been diverted to the Asian market, where conditions are more favourable.
Wintery weather conditions across Europe are exacerbating tight supply, with increased demand for propane as heating fuel.
The tight conditions have meant that physical prices are now higher than paper values, as the cold weather conditions are expected to ease going forward.
“There’s now this weird disconnect between physical and paper markets. The paper markets are telling you one thing, while the physical tells you another,” one source said.
($1 = €0.75)
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