Weekly Mont Belvieu Propane - Butane Price Review - September 9th 2022

By LPG in Nigeria ــ Last Update 09 September 2022

Our assessment for last week's daily Mont Belvieu propane and butane in USD/mt (4.3% and 5.4% down respectively on weekly average):

5th September: Bank holiday
6th September: 569.2; 540.5
7th September: 554.9; 524.3
8th September: 547.1; 511.0
9th September: 543.8; 502.1

LPG Butane prices moved significantly downwards to close at 502/1 USD/MT - the lowest since June 8th, 2021; when it closed at 500.6 USD/MT. The trend has followed the bearish momentum of oil prices. We may see Butane prices break the 500 USD mark in the coming week. Propane prices too although higher closed significantly lower than they did in the previous week - closing at 543.8 USD/MT against the previous week's close of 570.3
The global energy market remains uncertain, with many factors that could push prices back up lingering in the background. Reasons for the fall in prices are mainly; demand destruction; customers shifting to other fuels and reduced demand as a result of high prices. Also, the Chinese COVID-induced lockdowns persist which is a significant source of demand cuts. Factors that could drive prices back up remain sudden weather changes and the coming winter.
On the local side, prices didn't change much at different depot locations; prices remained the same with the lowest prices in Apapa ( 12.1 Million per 20MT) and the highest prices in Oghara ( 12.6 Million per 20MT).
We expect prices to go lower if international prices stay at the September 9th price or lower.
The retail prices from the LPG plants, also remained unchanged; ranging from about N9, 000 to N10,000.00 per 12.5kg cylinder across the country.