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QatarMoving into Q1 2025, the LPG market in the FOB Jebel Ali prices remained relatively stable, with Propane prices at $661.53 USD/MT, reflecting a 0.12% increase from Q4 2024, while Butane prices stood at $658.97 USD/MT, showing a 0.19% increase from Q4. This slight upward movement was primarily due to consistent export demand from Asia and Europe, as well as steady domestic consumption. The UAE’s strong production infrastructure and strategic supply chains played a crucial role in maintaining market balance, preventing any sharp fluctuations while ensuring reliable availability of both Propane and Butane.
By Q4 2024, LPG prices of FOB Jebel Ali saw a notable upward shift, with Propane prices rising to $660.72 USD/MT, reflecting a 7.90% increase from Q3, and Butane prices climbing to $657.69 USD/MT, marking a 10.01% increase from Q3. This surge was primarily attributed to increased demand from Asian markets ahead of the winter season, as countries aimed to secure ample heating fuel supplies. Furthermore, logistical challenges and limited shipping availability contributed to heightened transportation costs, indirectly supporting price growth. The UAE’s strategic export position and efficient production capabilities helped meet the robust demand, maintaining stable market dynamics despite the price hike.
In Q3 2024, the LPG market in the FOB Jebel Ali showed a slight stabilization, with Propane prices at $612.32 USD/MT, reflecting a 2.28% decrease from Q2. Similarly, Butane prices settled at $597.83 USD/MT, marking a 4.72% decrease from Q2. This price dip was primarily driven by reduced global demand and weaker downstream consumption in key importing regions. Additionally, geopolitical uncertainties and economic slowdowns in some Asian and European markets led to cautious procurement strategies, slightly dampening buying interest. Despite this, the UAE maintained steady production and reliable export operations, preventing any abrupt price drops while ensuring balanced supply.
In Q2 2024, however, the market faced a shift. Propane prices in the FOB Jebel Ali 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.
In Q1 2024, the global 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 FOB Jebel Ali, 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 Q1 2025, the LPG market in India remained largely stable, with CIF Nhava sheva Propane prices inching up to $688/MT, a 0.29% increase, and Butane rising slightly to $686/MT, up by 0.44% from Q4. Export demand from Asia stayed firm, and domestic consumption remained steady in both household and commercial sectors. With logistics normalized after the busy festive quarter and weather-related demand still present in certain northern regions, the market avoided major fluctuations. India’s well-managed supply chain and strategic sourcing agreements played a key role in keeping the market balanced and prices controlled as 2025 began.
In Q4 2024, the Indian LPG market saw a notable recovery in prices, largely due to rising demand during the festive season and increased heating fuel requirements in northern regions. CIF Nhava sheva Propane prices surged to $686/MT, up by 7.02%, while Butane climbed to $683/MT, reflecting a 9.11% rise compared to Q3. This price increase was supported by stockpiling from distributors, seasonal consumption peaks, and tighter global shipping capacity due to year-end trade congestion. India’s consistent import volumes, combined with steady domestic production, allowed the market to meet the high demand while adjusting prices accordingly.
In Q3 2024, the LPG market in India remained relatively steady, with a slight decline in pricing amid softening global demand. CIF Nhava sheva Propane was priced at $641/MT, showing a 0.93% decrease from Q2, while Butane was reported at $626/MT, down by 3.25%. Domestically, the monsoon season slowed down transportation and distribution activities in several regions, causing a temporary dip in demand from rural and semi-urban areas. Meanwhile, some industries switched to alternate fuels, impacting the overall LPG offtake. Despite these challenges, regular imports and a stable export supply chain ensured market balance without any sharp fluctuations.
In Q2 2024, the Indian LPG market experienced a slight correction in prices, as overall demand moderated with the change in season. CIF Nhava sheva Propane prices dropped to $647/MT, reflecting a 4.57% decline, and Butane prices stabilized at $647/MT, down by 6.10% from Q1. The dip was mainly due to reduced household consumption in post-winter, along with improved efficiency in domestic refineries and higher inventory levels. Additionally, increased global production and exports, especially from the Middle East, added to the abundant supply scenario, easing pressure on FOB India prices. Exporters were able to meet Indian demand without significant delays, contributing to this price stabilization.
In Q1 2024, the LPG market in India witnessed a bullish trend, driven by rising prices of both Propane and Butane, in line with global market movements. The demand from domestic sectors like residential cooking fuel, small-scale industries, and petrochemicals remained strong during the winter season and early festive activities. CIF Nhava sheva Propane prices stood at $678/MT, showing a 3.20% increase from the previous quarter, while Butane prices rose to $689/MT, marking a 3.30% rise. This upward movement was supported by higher import activity from major exporters like the UAE and Qatar, combined with increased LPG bottling and distribution in preparation for festive season demand across India.
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These events underscore the LPG market’s vulnerability to global disruptions and highlight the need for continuous monitoring of supply-demand dynamics.
This research methodology ensures that Price-Watch delivers the most accurate, timely, and actionable LPG pricing assessments, helping our clients stay ahead of market trends and make informed business decisions.
Molecular Weight[g/mol]
CAS No
HS Code
Molecular Formula
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
Grades Covered
Incoterms Used
Synonym
PriceWatch Quotation Terms:
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 |
| ٠ | ||
| Vapor pressure | 200 psig max at 100 F | 70 psig max at 100٠F |
| Corrosion (copper strip) | 1 maximum | 1 maximum |
| Total sulfur | 15 | 15 |
| ppmw maximum | ppmw maximum | |
| Hydrogen sulfide content | negative | negative |
| Water content | 10 | 10 |
| 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.
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.
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.
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.
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.
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