C1 Energy (Shanghai) – Aug 31, 2010 －－－Saudi Aramco released September CP Tuesday, hitting US$630/mt for propane and US$650/mt for butane, both up US$55/mt.
Market sources ascribed the hefty gains to augmented demand from the Asia market, which tightened the overall supply.
An international trader said the rises were within expectation and most spot cargoes for September loading were sold on the basis of September CP.
However, most Chinese importers believed the newly-issued CP was high.
LPG import margin of Chinese importers shrank to only Yuan 35/mt calculated by import costs of September CP plus US$35-40/mt, domestic trading level of Yuan 5,500/mt and freight rates of US$60/mt, according to an importer.
The spread between September CP for butane and propane widened US$10/mt to US$20/mt.
