SINGAPORE (ICIS)--Saudi Arabian petroleum and natural gas company Saudi Aramco has cut its April contract prices for propane and butane by $85/tonne and $25/tonne respectively from March levels, traders said on Monday.
Its April propane price is now at $770/tonne FOB (free on board), while the butane price is at $845/tonne FOB, according to the traders.
The propane price is within market expectations, they said, but added that the butane price is higher than expected, probably because of tight supply at Saudi Aramco’s butane storage tank which is undergoing a turnaround.
In addition, Saudi Aramco expects butane demand from petrochemical companies to rise in April, the traders said.
However, its high butane price has narrowed the spread between butane and naphtha, which may weaken demand from petrochemical producers, one trader said.