NWE coaster propane prices fall on low demand, higher availability

Chemical News: NWE coaster propane prices fall on low demand, higher availability

https://www.chemnet.com Apr 28,2011 Platts
Spot prices for FOB coaster propane cargoes in Northwest Europe have fallen due to low seasonal demand and increased availability, according to industry sources.

Based on Platts data, spot FOB prices were marginally above $1,010/mt at the end of the first week in April, but then fell by $100/mt to just over $910/mt by the end of the second decade of the month, before recovering slightly to a last published level of $922.5/mt.

Coaster propane cargoes, which are usually between 1,000 mt and 3,000 mt in size, are used in the winter period to cover heating and cooking demand, with regular contract deliveries into France, Portugal and Ireland.

In the summer months, however, buying interest for this part of the market traditionally decreases quite sharply.

"There is not a lot of demand out there," said one source. Warmer weather also reduces the quantity of propane moving into the inland market from refineries, resulting in a higher level of refinery exports.

"There is a bit more availability out there," said another industry source.

Print | add to Favorites | Close