Saudi Aramco slashes June propane contract price to Asia

Saudi Aramco surprisingly slashes propane contract prices to Asia for June loading by three digits despite the rising crude oil prices. There have been speculations that the steep discounts aimed to draw interest from major eastern Asia buyers, who have been momentarily distracted by the competitive Russian cargoes.

The price provides a benchmark against which Middle East sales of liquefied petroleum gas (LPG) to Asia are priced.

The latest offer stands at $750/ton, FOB from the port of Ras Tanura. 

The producer’s price list for propane and butane are shown in the following table:

Propane is a primary feedstock used by propane dehydrogenation (PDH) operators in producing propylene monomers.