Saudi Aramco Keeps Propane Prices Steady for June
In a move that surprised many, Saudi Aramco decided to maintain propane contract prices for the month of June at $580 per tonne. This decision comes amidst a volatile market where prices have been fluctuating constantly.
Butane prices, on the other hand, were set at $565 a tonne for June, showing a slight decrease compared to the previous month.
Propane and butane are both types of liquefied petroleum gas, each with its own unique properties and uses. Propane is known for its lower boiling point, making it ideal for various applications.
LPG, which includes both propane and butane, is a versatile fuel used in cars, heating systems, and as a feedstock for petrochemicals. Its demand has been steadily increasing in recent years due to its efficiency and affordability.
Aramco’s Official Selling Prices (OSPs) for LPG serve as a benchmark for contracts in the Middle East, particularly in the Asia-Pacific region. These prices play a crucial role in determining the cost of LPG imports for countries in this region.
China, being the world’s largest consumer and importer of LPG, relies heavily on imports to meet its growing energy needs. In March alone, China’s imports of LPG surged by an impressive 46 percent, reaching 3.08 million metric tons.