Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (3.5% and 1.3% up respectively on the weekly average):
12th December: 356.1; 397.8
13th December: 366.3; 415.9
14th December: 369.7; 421.0
15th December: 357.9; 417.5
16th December: 350.7; 412.9
LPG Butane prices closed higher for the first time since the first week of November, closing at 412.9 USD/MT against the previous week's close of 392.6 USD/MT - a 5% increase in price. Propane prices also closed higher but less significantly; closing at 350.7 USD/MT against the previous week's close of 346.5 USD/MT - a 1% increase in price.
The rebound in prices came a week after LPG prices were lowest in more than 18 months. Factors affecting price increase could be the demand spike from the winter even as other sources of 'dirty fuel' are being utilized across Europe and the relaxation of COVID-19 lockdown restrictions in China. We predict a bullish trend in the coming weeks, mainly because of the expected oil demand from China.
Local LPG prices in Nigeria
On the local side, prices didn't move, most depots in Apapa had low stock toward the end of the week. Prices remained at 12.4 Million Naira per 20MT at Prudent depot (Oghara). Most depots sold at between 12 to 12.2 Million per 20 Metric tons. Prices are expected to increase as the market fills the scarcity caused by last week's limited supply.
LPG retail prices at the LPG plants should remain within the same prevailing levels; between N9,000.00 to 10,000.00 nationwide.