Weekly Mont Belvieu Propane-Butane price review August 28th 2023
Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (3% and 0.4% up respectively on the weekly average):
21st August: 331.8; 367.1
22nd August: 330.5; 370.2
23rd August: 336.0; 367.6
24th August: 342.6; 374.6
25th August: 350.2; 379.1
Some retracements here for both Butane and Propane. Butane prices retraced to 379.1 USD/MT from 364.4 USD/MT at the end of the week. At the same time, Propane retraced to 350.2 USD/MT from 326.4 in the previous week.
Industry news shows that lower-than-expected crude inventories in Europe and the US is the main reason for the bullish pushback. But the prospect of lower prices is strong because of new supply sources and of course, expected lower demand from China. We expect prices to drop further in the coming weeks.
Local LPG prices in Nigeria
Local depot prices sold slightly lower; 11.9 million being the highest in the South South, while prices dropped to 11.4 Million in Apapa.
The likelihood of prices turning bullish is there because of the Naira/USD exchange rate which is past 900 USD again; which is one factor that could send prices back up.
On the retail side, there are indications that LPG prices are still in the range of N8000 to 9000 per 12.5kg in most places nationwide.