RIYADH: In a statement released on Thursday, Saudi Aramco announced a reduction in its official selling prices for butane and propane for June 2025. Propane was reduced by $10 per tonne to $600, but butane was reduced more sharply by $20 per tonne to $570. The adjustments show a negative trend from the previous month and reflect changes in the market. Both butane and propane are categorised as liquefied petroleum gases and are used extensively in the petrochemical industry, for heating, and as fuel for automobiles. Each is appropriate for different industrial and home uses because to its different boiling points.
When it comes to supply contracts from the Middle East to the Asia-Pacific area, Aramco’s LPG pricing are seen as important benchmarks. The worldwide LPG market is changing dramatically as a result of Chinese purchasers switching from American cargoes to Middle Eastern supply due to high taxes on US imports. Shipments from the US are being diverted to Europe and other Asian countries in the meanwhile.
Both US shale producers and Chinese petrochemical businesses may face financial difficulties as a result of this realignment, which is predicted to drive down prices and demand for shale gas byproducts. Simultaneously, it is anticipated to stimulate heightened interest in substitute feedstocks like naphtha.
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