Demand for spot ARA propane remains weak

Chemical News: Demand for spot ARA propane remains weak

https://www.chemnet.com Aug 11,2010
Demand for spot propane in the Antwerp-Rotterdam-Amsterdam area remains extremely weak, according to industry sources.

FCA propane loaded on trucks and railcars and FOB propane loaded on barges is used in many parts of Northwest Europe as a heating and cooking fuel, with summer demand lower than winter demand as a result.

Current buying interest, however, is at very low levels, particularly in the important German market, where distributors have been able to cover most of their limited spot requirements from local refineries at more competitive prices than those obtainable from the ARA export terminals at Vopak in Flushing and the AGT terminal at Antwerp.

"No one is buying, there is no discussion at all," said one trader.

"We do not need propane from the AGT terminal," said another source.

With such thin demand spot FCA prices, based on Platts data, have remained in a $600-630/mt range during July, although the last published level was a little higher at $637.50/mt.

Spot FOB prices have followed a similar pattern, with July prices in a relatively narrow $570-605/mt range and the last published level at 622.50/mt, according to Platts data.

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