Saudi Aramco released July contract prices (CPs) for LPG Tuesday, with propane at US$815/mt and butane at US$70/mt, down US$40/mt and US$70/mt, respectively.
The cuts were somewhat steeper than market expectation.
International LPG prices declined amid slumps in global crude futures in the second half of June, market sources denoted.
Nymex Crude prices closed at US$90.61/bbl on Jun 27, sharply down US$15/bbl from early June.
LPG importers were prudent in making purchasing in face of sufficient supply of July spot cargoes from the Middle East against soft demand from Asia market during summer, the sources said.
The spread between butane and propane narrowed to US$40/mt, because butane prices are still stronger than propane on demand from some Asian countries like Thailand and India, the sources denoted.
July CPs were still high, some South China-based traders said, adding they will continue to stay on the sidelines in the near term.
A Vietnam-based Japanese trader also told C1 that the company had no plan to purchase spot at the moment due to abundant stockpile and higher-than-expected propane prices.
Saudi Aramco usually publishes LPG CPs for next month at the end of the month.
