Liquified Petroleum Gas Price Trend

Liquified Petroleum Gas Prices December 2023

The price of liquified petroleum gas (LPG) in the United States for Q4 2023 reached 1020 USD/MT in December. The price of LPG saw an increase in rates of Butane FD Texas during December at the end of the quarter. The growing demand from both the domestic and overseas markets, particularly in Asia, played a significant role in surging the price rates. Additionally, limitations and obstacles encountered in the Panama Canal disrupted customary trading routes and resulted in increased shipping expenses, exacerbating price fluctuations during December.

The price trend for LPG in China has a steady inclination when compared with the previous quarter; however, nearing December it remained stable at 1170 USD/MT. December witnessed no change in the price of LPG in China following the announcement by major stakeholders of constant prices for the commodity.

In Europe, LPG experienced a moderate supply of LPG in the domestic market, reaching 1140 USD/MT. In addition to this, the downstream sectors witnessed a relatively high consumption rate. Moreover, Europe faced the imminent threat of recession, grappling with a rapid tightening of monetary policy and significant economic hurdles. The predominant concern regarding stagnant or decreasing real wages across the continent has contributed to the marginal stability of LPG prices throughout October.

Liquified Petroleum Gas Price Trend, Market Analysis, and News

IMARC's latest publication, “Liquified Petroleum Gas Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” presents a detailed examination of the LPG market, providing insights into both global and regional trends that are shaping prices. This report delves into the spot price of LPG at major ports and analyzes the composition of prices, including FOB and CIF terms. It also presents a detailed LPG price trend analysis by region, covering North America, Europe, Asia Pacific, Latin America, and Middle East and Africa. The factors affecting LPG pricing, such as the dynamics of supply and demand, geopolitical influences, and sector-specific developments, are thoroughly explored. This comprehensive report helps stakeholders stay informed with the latest market news, regulatory updates, and technological progress, facilitating informed strategic decision-making and forecasting.

Liquified Petroleum Gas Market Analysis

The global LPG market size reached US$ 139.9 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 192.4 Billion, at a projected CAGR of 3.50% during 2023-2032.

• The rising use of LPG across the commercial sector in restaurants, hotels, and other hospitality establishments for cooking and heating purposes represents the key factor driving the market growth. Its controllable flame and its instant heat make it ideal for cooking applications in households and commercial spaces, allowing chefs precise temperature control over different culinary needs. Moreover, LPG-powered heating systems are preferred for their reliability and cost-effectiveness, allowing businesses to maintain comfortable environment efficiency.
• LPG offers cleaner combustion, with lower emissions of harmful pollutants such as sulfur dioxide, nitrogen oxides, and particulate matter compared to traditional fossil fuels, which is further contributing to its market growth. This fall in emissions mitigates air pollution, improving air quality and public health. Additionally, its cleaner combustion characteristics make it an attractive option for reducing air pollution and mitigating the environmental impact of energy consumption.
• Furthermore, LPG emits fewer greenhouse gases (GHG) like carbon dioxide (CO2) during combustion, contributing to efforts to combat climate change. Its cleaner burning properties make LPG an environmentally sustainable energy option, aligning with global initiatives for cleaner energy transitions.
• Besides this, LPG is also portable, which makes it suitable for off-grid locations or areas with unreliable access to other fuels. In rural areas, where electricity or natural gas are limited, LPG acts as a reliable energy source for numerous uses such as cooking, heating, and power appliances. Its ease of transport in portable cylinders ensures accessibility in remote regions, supporting energy access and socioeconomic advancements is impelling the market growth.
• Additionally, LPG can be easily stored and handled safely, with stringent regulatory standards governing its production, distribution, and utilization to ensure public safety and environmental protection, which is creating a positive outlook for market expansion.
• Apart from this, LPG-powered devices are known for their reliability and durability, requiring minimal maintenance compared to other fuel sources. This characteristic reduces operational costs and downtime associated with servicing and repairs. With fewer maintenance requirements, businesses and households can optimize their productivity and efficiency with LPG-powered, enhancing overall operational performance, thus bolstering the market growth.

Liquified Petroleum Gas News

The report covers the latest developments, updates, and trends impacting the price of LPG, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, technological innovations, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the LPG price trend.

Latest developments in the LPG industry:

• In June 2021, Astomos Energy Corporation signed an agreement with Shell International Eastern Trading Company (Shell) to purchase carbon-neutral LPG cargo for delivery in Japan. The large gas carrier (VLGC)-size LPG cargo is the world's first carbon-neutral LPG. The CO₂e lifecycle emissions associated with this product have been verified through nature-based carbon credits. Shell's nature-based initiatives involve protecting, transforming, or restoring land, facilitating natural processes that generate oxygen and sequester CO2 emissions from the atmosphere.
• In March 2021, Abu Dhabi National Oil Company (ADNOC) signed an agreement to supply Indonesian national oil company Pertamina with LPG and sulfur in a four-year contract worth around USD 2 billion.

Product Description

LGP is a versatile and widely used fuel that consists primarily of propane or butane, or a mixture of the two. It is a byproduct of natural gas processing and crude oil refining. It is stored under pressure as a liquid, but when released, it vaporizes into a gaseous state. This characteristic makes it convenient for storage, transportation, and utilization in various applications.

LPG finds extensive applications across residential, commercial, and industrial sectors. In households, it is commonly used for cooking, heating, and hot water systems. Its clean-burning properties make it a preferred choice for cooking, as it produces fewer emissions compared to traditional fuels like coal or wood. Additionally, LPG heaters offer efficient heating solutions for homes, especially in regions where natural gas infrastructure is limited or unavailable.

Regional Coverage

The report provides a detailed analysis of the market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of FOB and CIF prices, as well as the key factors influencing the LPG price trend. 

Global Liquified Petroleum Gas Price

The report offers a holistic view of the global LPG pricing trends in the form of LPG price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price levels but also provides insights into historical price of LPG, enabling stakeholders to understand past fluctuations and their underlying causes. The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed LPG demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Liquified Petroleum Gas Price

The European region has experienced a moderate demand for LPG in the domestic market, while downstream sectors experienced a relatively high consumption rate. Additionally, Europe was on the brink of recession, struggling with a swift tightening of monetary policy and terrifying economic challenges. The issue of stagnant or declining real wages throughout the continent has maintained marginally stable prices of LPG during October. However, November witnessed a marginal surge due to increased demand, coupled with stable supply.

Detailed price information for LPG can also be provided for an extensive list of European countries.

North America Liquified Petroleum Gas Price

In North America, the LPG market has witnessed mixed sentiments that influenced prices. Alongside, LPG prices in October and November experienced a downtrend while the prices rebounded during December. The decrease was primarily attributed to reduced demand from European nations, while firm demand continued in the Asian market.

Specific LPG historical data within the United States and Canada can also be provided.

Middle East and Africa Liquified Petroleum Gas Price

The LPG market in the Middle East and Africa (MEA) region showcased a moderate supply and demand. Concurrently, October witnessed a steady incline while December remained majorly stable. The price hike was attributed to the announcements made by Algeria's Sonatrach and Saudi Arabia's Aramco to raise the official selling prices (OSPs) for LPG in October compared to the previous month. This adjustment was a response to the rising oil prices and a limited global supply of LPG, as reported by market participants.

Region-wise data and information on specific countries within these regions can also be provided.

Asia Pacific Liquified Petroleum Gas Price

The LPG pricing in the Asia Pacific region displayed a steady rise when compared with the previous quarter. However, October and November witnessed a steady hike while December remained majorly stable. Furthermore, the northern region experienced a surge in civilian demand prompted by the onset of winter, contributing to a steady rise in demand that supported the market. Simultaneously, chemical demand for propane remained consistent, maintaining a balanced market supply and demand.

This LPG price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Liquified Petroleum Gas Price

The analysis of LPG prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, agricultural output, and trade frameworks.

This comprehensive review can be extended to include specific countries within Latin America.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of LPG pricing, covering global and regional trends, spot prices at key ports, and a breakdown of FOB and CIF prices.
• The study examines factors affecting LPG price trend, including input costs, supply-demand shifts, and geopolitical impacts, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The LPG price charts ensure our clients remain at the forefront of the industry.