liquified petroleum gas Pricing Assessment

Name: Liquified Petroleum Gas Price Trend, Analysis and Forecast
Creator: PriceWatch
Published: 2025-02-17T10:32:40+00:00
License: https://www.price-watch.ai/privacy-policy/

Markets Covered:

Belgium

Brazil

China

Egypt

France

India

Indonesia

Japan

Mexico

Netherlands

Philippines

Thailand

Korea

United States

United Arab Emirates

Saudi Arabia

Qatar

Liquified Petroleum Gas Price Trend, Analysis and Forecast

In Q1 2024, the global Liquified Petroleum Gas (LPG) market, particularly in major Countries as the USA, UAE, Saudi Arabia, and Qatar, saw a bullish trend. This was driven by rising Propane and butane prices, as well as increasing demand from sectors like petrochemicals and residential use. In the UAE, LPG prices reflected this upward movement, with Propane prices at USD 660.28/MT, showing a slight increase of 1.53% compared to the previous quarter. Butane prices also rose to USD 670.85/MT, reflecting a 1.58% increase from the prior period. The Middle East and African markets experienced strong demand for LPG due to regional construction growth and energy consumption needs.

In Q2 2024, however, the market faced a shift. Propane prices in the UAE declined to USD 626.63/MT, showing a drop of 5.09% from Q1, while butane prices fell to USD 627.47/MT, indicating a 6.48% decline. This decline in LPG prices was largely due to advancements in the production process, improving efficiency and increasing supply, which reduced market pressure. Additionally, the overall demand for LPG saw a drop due to the seasonal slowdown in consumption and technological innovations that reduced dependence on traditional LPG applications.

By August 2024, during Q3, the LPG market began to stabilize again. Propane prices in the UAE were reported at USD 610/MT, reflecting a modest increase of 0.85% from the previous quarter. Butane prices were also slightly up at USD 590.95/MT, with a 0.21% increase. This stabilization was supported by a balancing of supply and demand, driven by production adjustments in key regions. On a global scale, abundant supply and ongoing freight challenges moderated price fluctuations, but demand remained robust in the petrochemical sector, particularly in North America and Asia.

Looking ahead to Q4 2024, the LPG market is expected to face upward pressure, especially with the festive season and increased energy consumption. Demand from the packaging and construction sectors is likely to increase, particularly in the Middle East and Asian markets. However, challenges such as ongoing freight disruptions, fluctuating production rates, and geopolitical factors could continue to create volatility in the market. Despite this, the outlook for LPG prices is cautiously optimistic, with potential for modest price increases as the year-end approaches.

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is your trusted resource for tracking global liquified petroleum gas price trends. Our platform delivers real-time data and expert analysis, offering deep insights into the key factors driving price fluctuations in the liquified petroleum gas market. By monitoring critical events such as geopolitical tensions, supply chain disruptions, and economic shifts, keeps you fully informed of market dynamics.

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Historically, several events have caused significant fluctuations in liquified petroleum gas prices

COVID-19 pandemic (2021-2019): the LPG market saw major fluctuations due to the COVID-19 pandemic. In 2020, lockdowns caused a sharp drop in demand, leading to a steep decline in LPG prices. By 2021, as economies recovered and industries resumed, energy demand surged, driving prices upward. Supply chain disruptions added to price volatility and regional shortages.

OPEC Production Cuts (2018): The Organization of the Petroleum Exporting Countries (OPEC) agreed to cut oil production to stabilize prices. As LPG is a byproduct of oil refining and natural gas production, these cuts influenced LPG availability, leading to higher prices due to tighter supply.

Hurricane Harvey Impact (2017): Hurricane Harvey struck the U.S. Gulf Coast, severely affecting oil refineries and natural gas processing plants. As a major producer of LPG, the disruption in U.S. supply chains led to a temporary spike in LPG prices globally. The Gulf Coast region is a hub for LPG exports, and the hurricane caused bottlenecks that caused short-term price increases.

Oil Market Oversupply (2016): Global oil markets experienced a period of oversupply, primarily due to increased production in the U.S. and reluctance among OPEC nations to cut output. This surplus in oil production led to lower prices for oil and its byproducts, including LPG. LPG prices dropped as supply remained high while demand growth was slow, particularly in the early months of 2016.

Global Crude Oil Price Crash (2015): In 2015, global crude oil prices plummeted due to oversupply and weakened demand, primarily caused by the rapid increase in U.S. shale production and OPEC’s decision not to reduce output. Since LPG is closely tied to oil production, the price of LPG also fell sharply. This period marked one of the most significant downturns in LPG prices, with a long-term impact on the global energy market.

These events underscore the LPG market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.

Methodology and Specifications

liquified petroleum gas Pricing Assessment Research Methodology

Data Collection and Sources

Real-Time Market Data: PriceWatch collects real-time pricing data from a wide range of sources, including global commodity exchanges, industry reports, and proprietary databases. This ensures that our assessments reflect the most current market conditions for Liquified Petroleum Gas (LPG).

On-the-Ground Intelligence: Our team gathers insights directly from key market participants, including LPG producers, suppliers, traders, and end-users, across major LPG production hubs. This localized intelligence is crucial for understanding the unique market dynamics in different regions.

Supply Chain Monitoring: We monitor the entire LPG supply chain, from raw material availability (such as Propane and Butane) to production and distribution channels. Our monitoring includes tracking feedstock prices, refinery outputs, production capacities, and transportation logistics.

Event Tracking and Impact Analysis

Geopolitical Tensions: PriceWatch continuously tracks global geopolitical developments, such as conflicts, trade disputes, and sanctions, that can significantly impact LPG prices. Our analysis assesses the potential disruptions to supply chains and how these events influence short- and long-term price trends.

Natural Disasters and Climate Events: We evaluate the impact of natural disasters, such as hurricanes, earthquakes, and winter storms, on LPG production facilities. Particularly in regions like the U.S. Gulf Coast, these events can disrupt supply, leading to price spikes. Price Watch factors these risks into our forecasts and supply outlooks.

Energy Transition and Regulatory Shifts: With the global shift toward renewable energy, PriceWatch keeps track of changing environmental regulations, carbon policies, and the push for cleaner energy alternatives. These developments can influence LPG demand and pricing as markets adjust to lower reliance on fossil fuels.

Production Capacity and Supply Analysis

Current Production Monitoring: We maintain an extensive database of global LPG production facilities, tracking their operational status, maintenance schedules, and output levels. This enables us to provide accurate assessments of current LPG supply availability.

Future Capacity Projections: PriceWatch forecasts future LPG production capacities by analyzing new plant constructions, refinery expansions, and technological innovations. These projections help anticipate supply trends and assess potential impacts on price stability.

Demand Forecasting

Sectoral Demand Analysis: PriceWatch conducts in-depth analysis of demand trends across key sectors, including residential, industrial, and transportation. We track year-on-year demand growth and project future consumption patterns based on economic indicators and industry developments affecting LPG.

Global Demand Dynamics: Our research considers regional demand variations and their impact on global LPG pricing. This includes understanding shifts in demand due to changes in manufacturing bases, energy policies, and environmental regulations.

Pricing Model Development

Dynamic Pricing Models: PriceWatch uses advanced econometric models to forecast LPG prices. Our models incorporate real-time data, historical trends, and projected market conditions. These models are constantly refined to improve accuracy and forecasting ability.

Scenario Analysis: We conduct scenario-based analyses to evaluate potential future market conditions. Our scenarios include best-case, worst-case, and most likely outcomes, helping clients prepare for various market scenarios and make strategic decisions.

Reporting and Client Support

Comprehensive Reports: Our clients receive detailed reports that include current LPG price assessments, future price forecasts, and in-depth analysis of market drivers. These reports are designed to be actionable, providing clear insights and recommendations for market players.

Ongoing Support: PriceWatch provides continuous updates and personalized support to our clients, ensuring they have the most up-to-date information for making informed decisions. Our experts are available to discuss specific market trends and provide tailored advice based on current developments.

This research methodology ensures that PriceWatch delivers the most accurate, timely, and actionable LPG pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.

Specifications

Molecular Weight[g/mol]

44.097 g/mol (Propane), 58.12 g/mol (Butane).

CAS No

74-98- 6(Propane), 106-97-8(Butane).

HS Code

27111200 (Propane), 27111300 (Butane)

Molecular Formula

C3H8 (Propane) & C4H10 (Butane)

liquified petroleum gas

Liquefied Petroleum Gas (LPG) is a versatile and efficient fuel composed primarily of Propane and Butane, which are derived from refining petroleum or processing natural gas. LPG is commonly used for heating, cooking, and powering vehicles due to its clean-burning properties and ease of storage. It’s a cost-effective and environmentally friendly energy source that can be easily transported in liquid form. LPG's flexibility and widespread availability make it an essential fuel for both residential and industrial applications.

Packaging Type

ISO Tanks

Grades Covered

Propane and Butane

Incoterms Used

FOB Hamad, FOB Jebel Ali, FOB Jeddah, FOB Texas, CIF Nhava Sheva(Saudi Arabia, UAE, Qatar),CIF Shanghai(Qatar, UAE), CIF Tokyo (United States of America), CIF Santos (USA), CIF Rotterdam (USA) , CIF Alexandria (Saudi Arabia), CIF Antwerp (USA), CIF Barcelona (USA), CIF Busan (USA), CIF Jakarta (UAE), CIF Laem Chabang (UAE, Saudi Arabia), CIF Le Havre (USA), CIF Manila (UAE), CIF Manzanillo(USA).

Synonym

Quotation Terms:

100-120 MT

Ex-Location: This incoterm refers to a shipping agreement where the seller makes the goods available at their premises, and the buyer is responsible for all transportation costs, including shipping, insurance, and any other fees.
CIF: CIF refers to the Cost, Insurance, and Freight (CIF) terms for goods. Under CIF terms, the seller is responsible for the cost of goods, insurance, and freight charges until the goods reach the port of destination.
FD: FD stands for Free Delivered where the seller takes full responsibility for delivering goods to the location/port. This ensures the buyer receives the goods at the designated port with all necessary costs, except import duties, covered.
FOB: FOB refers to the Free On-Board shipping term, where the seller is responsible for the cost and risk of delivering the goods to the port. Once the goods are on board the vessel, the responsibility shifts to the buyer for all costs, including shipping and insurance.

PROPERTY	SPECIFICATION
	PROPANE	BUTANE
Methane content	10 ppmv maximum	10 ppmv maximum
Ethane content	2.0 liq vol% maximum	10 ppmv maximum
Propane content	95.0 liqvol% minimum	2.0 liq vol% maximum
Butanes content	3.0 liqvol% maximum	97.0 liq vol% minimum
Pentanes + content	15 ppmv maximum	1.0 liq vol% maximum
Olefins content	0.05 wt% maximum	0.1 wt% maximum
Olefins content	٠	0.1 wt% maximum
Vapor pressure	200 psig max at 100 F	70 psig max at 100٠F
Corrosion (copper strip)	1 maximum	1 maximum
Total sulfur	15	15
Total sulfur	ppmw maximum	ppmw maximum
Hydrogen sulfide content	negative	negative
Water content	10	10
Water content	ppmw maximum	ppmw maximum
Residues	10	10
1) Residue number	maximum	maximum
2) Oil number	Pass	Pass
	test requirements	test requirements

Applications

Liquefied Petroleum Gas (LPG) is primarily used as a fuel source in various applications. It serves as a feedstock for producing important chemicals like propylene, which is essential for making plastics, and butylene, used in synthetic rubber production. Additionally, LPG is utilized in the manufacturing of chemicals such as Butane and Propane for heating and cooking. Beyond its role in industrial processes, LPG is also a popular choice for powering vehicles and heating homes, making it a versatile energy source in everyday life. Its efficiency and clean-burning properties make it an excellent option for both residential and commercial use.

Disclaimer

Liquified Petroleum Gas price provided by is a base price and excludes VAT/Taxes, discounts, or offers. The information herein is accurate to the best of our knowledge as of the date indicated and is provided solely for the convenience of our customers as a reference for liquified petroleum gas. disclaims any warranties or representations regarding the accuracy of results derived from this information. It is the sole responsibility of the user to assess the suitability of the product for their specific application. This document does not constitute an endorsement to use the product in violation of any applicable patent rights.

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Frequently asked questions

What factors influence LPG prices in the global market? +

The price of LPG is affected by several factors, including crude oil prices, production levels, and seasonal demand fluctuations. Additionally, geopolitical events, weather conditions impacting production, and changes in transportation costs can all influence LPG pricing. It's essential for procurement heads to keep these factors in mind when assessing market trends.

How do changes in LPG supply and demand affect pricing trends? +

The balance between supply and demand plays a crucial role in determining LPG prices. When demand rises, such as during cold weather or peak cooking seasons, prices tend to increase. Conversely, if there is an oversupply due to increased production or decreased demand, prices may drop. Monitoring supply and demand trends can help procurement heads make informed purchasing decisions.

What regional differences exist in LPG pricing, and how do they impact procurement strategies? +

LPG prices can vary significantly by region due to differences in production costs, transportation logistics, and local market conditions. For example, regions with abundant natural gas reserves may experience lower prices compared to those reliant on imports. Procurement teams should evaluate regional pricing differences and adjust their sourcing strategies accordingly to optimize costs.

What is the future price outlook for LPG, and how should procurement heads plan for it? +

The future price outlook for LPG depends on various factors, including global economic conditions, energy policies, and shifts in fuel consumption patterns. As demand for cleaner fuels grows, LPG may see price increases. Procurement heads should stay informed by following market reports, considering long-term contracts, and diversifying suppliers to mitigate potential risks associated with price volatility.