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):
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
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.