Spot prices for propane in the Amsterdam-Rotterdam-Antwerp region have remained strong despite low demand, according to industry sources.
Propane from terminals and refineries in ARA is exported to meet heating and cooking demand in Germany, northern France and the Benelux area on trucks, railcars and barges, but demand in the summer period is much lower than in the winter.
This has been particularly evident for August with buying interest for spot ARA propane at very low levels.
In the key German market sources said that almost all demand could be covered from contract availabilities and supplies from local refineries.
"It makes no sense to go to Antwerp," said one trader. "It is a typical summer market."
Despite the low level of demand for ARA propane spot prices have steadily increased this month.
Based on Platts data FCA prices for propane loaded on trucks and railcars has increased by $90/mt since the start of August, rising from the low $830s/mt to a last published level Monday of $922.50/mt.
Industry sources said the main reason for the higher ARA prices is the current strength of North Sea propane prices, which are used by some terminal sellers in ARA to calculate replacement costs.
Spot North Sea prices have strengthened by $116/mt so far in August climbing from $826.50/mt to a last published level Monday of $942.50/mt, again based on Platts data.
