Saudi Aramco cuts propane prices to Asia for the sixth straight month

Saudi Aramco has opened the October propane contract price to Asia with a reduction of $60/ton from the previous month, marking the sixth consecutive month of decline. According to industry experts, ample supply is the primary cause. 

There have been reports that Saudi Aramco supplies about 500,000 tons monthly to its term customers in Asia while the producer’s trading arm Aramco Trading Co. (ATC) has been ‘offering up to three to four monthly cargoes in recent months’. 

Besides, the Asia market also attracts a good number of cargoes from the US and occasionally, West Africa.  

The latest offer stands at $590/ton, FOB from the port of Ras Tanura.

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

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

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