Aramco raises May propane, butane to $470/mt, up 8-10% on month

Singapore (Platts)--1May2006

Saudi Aramco has raised its contract prices for propane and butane to
$470/mt for May loading, up $35/mt and $45/mt respectively from April on
higher crude oil prices, the company said Sunday.

On the year, the new CP was up from $420/mt for propane and $423/mt for
butane from last May. Aramco's May settle at $470/mt both products beat market
expectation of around $465/mt late last week, a Platts survey showed.

Aramco's May contract prices were also higher than $465-468/mt, the
highest heard paid for a propane-butane split cargo for May-loading for the US
Gulf Coast.

Aramco's May CP has tracked higher global crude oil prices, which surged
to record highs in mid-April. Aramco's May CP was up 8.1% for propane, almost
similar to the percentage rise in crude for the month, although butane was up
more at 10.6% on the month.

Saudi Aramco's May CP settle came as Asian buyers, the main offtakers of
Aramco's term cargoes, headed for their holidays. A string of holidays in
Asia -- Japan's Golden Week holiday and China's week-long May Day
holiday -- starts from this week.

The Asian prices for LPG have been lagging behind the gains in the
Western markets. Weaker seasonal demand for LPG for heating purposes and high
inventories in Japan capped prices in Asia, sources said.

The last done price was at $500/mt to Southern China for second-half May
delivery, down from the month's high of $505/mt to China and $510/mt to Japan.

Aramco's May CP at $470/mt translates to around $520/mt for cargoes for
May/June delivery, $20/mt higher than what was last done to China.

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http://petrochemicalreport.platts.com.



 

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