27 September 2013 23:59 [Source: ICIS news]
LONDON (ICIS)--Prices of European propane cargoes on a CIF (cost insurance freight) NWE (northwest Europe) basis rebounded this week (20-27 September) after several weeks of decline, sources said on Friday.
Large propane cargoes rose from $740-750/tonne (€548-577/tonne) to $770-780/tonne.
Product from US-based Targa and Enterprise terminals, which had contributed to bearish sentiment, continues to ensure good supply in Europe but sources said that availability had been factored in by the market.
One shipbroker said: “The drop in propane values was mainly due to a couple of US cargoes. Those cargoes have been factored in and we see that after the 10 October there’s not an abundance of cargoes. That’s maybe the rebound. We got through the very well supplied market without it crashing.”
With few shipments expected incoming to Europe in the second half of October and adequate demand expected, sources said buyers had positive expectations.
“Most of the business in the window [this week] has been on a fixed price basis, which could be an indication buyers think this is the bottom, and prices could be looking upward,” the shipbroker added.
($1 = €0.74)
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