Liquified Petroleum Gas Prices

Liquified Petroleum Gas Prices December 2023

The liquified petroleum gas prices in the USA for Q4 2023 reached 1020 USD/MT in December. The market showed mixed trends, with prices falling in the early months due to oversupply but rebounding in December. Growing consumption across the domestic and Asian markets pushed prices upward. The Panama Canal restrictions interrupted trading routes, driving excessive shipping budgets and further influencing the market toward the end of the quarter.

The price trend for LPG in China for Q4 2023, reached 1170 USD/MT in December. The market saw steady price growth in October and November, fueled by rising imports and increased demand for winter heating. Higher official selling costs from major suppliers like Saudi Arabia supported the upward trend. Nonetheless, December brought market stability, as key stakeholders maintained previous pricing levels, keeping the market balanced by year-end.

The price trend for LPG in Europe for Q4 2023, reached 1140 USD/MT in December. In Q4 2023, The market witnessed fluctuating demand, with constant prices in October and a rise in November driven by higher winter consumption and supplier price increases. The Panama Canal disruptions redirected United States exports to Europe, heightening competition and elevating prices. Despite stable supply, economic uncertainties continued to weigh on the market.

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 LPG 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 ex-works, 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 the current price but also provides insights into LPG historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into LPG 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 market faced challenges in Q4 2023, marked by mixed supply and demand dynamics. The region's economy grappled with recession fears and tightening monetary policies, which led to relatively constant LPG prices in October. Moreover, demand rises in November, partly driven by rising winter needs and price hikes from suppliers like Aramco and Sonatrach. Europe also became a more attractive destination for United States LPG exports, as logistical bottlenecks in the Panama Canal made Asian markets less accessible. This shift raised competition and increased prices toward the end of the quarter. Despite high consumption rates and moderate supply, the region's economic challenges continued to impact market trends.

This analysis can be extended to include detailed LPG price information for a comprehensive list of countries.

North America Liquified Petroleum Gas Price

The North American LPG market saw fluctuating price trends in Q4 2023, with a decline in the initial quarter followed by a recovery in December. The initial downtrend was due to restrained demand from Europe, while robust demand from Asia helped buoy prices toward the end of the quarter. Sufficient supply and stockpiles kept the market well-balanced, but traders adjusted prices in response to volatile crude oil costs. The surplus in the USA, exacerbated by logistical disruptions at the Panama Canal, also pressured prices. As the quarter closed, growing domestic and international demand, especially from Asia, led to price increases, particularly in December, despite the persistent logistical challenges.

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

Middle East and Africa Liquified Petroleum Gas Price

The MEA market in Q4 2023 experienced reasonable supply and demand levels. October saw a price increase, driven by proclamations from Sonatrach in Algeria and Aramco in Saudi Arabia to introduce executive selling rates in response to surging crude oil rates. Strong requirements from Asian markets, combined with constrained global LPG supply, also supported price hikes early in the quarter. However, December brought stability, with Saudi Aramco deciding to maintain its prices, while Sonatrach slightly reduced its Propane prices due to weaker demand. Additionally, falling crude oil prices further influenced the market. The region remained relatively stable in terms of supply, with no major disruptions impacting the market.

In addition to region-wise data, information on LPG prices for countries can also be provided.

Asia Pacific Liquified Petroleum Gas Price

The LPG market in the Asia-Pacific region, particularly in China, exhibited a positive trend during the fourth quarter of 2023. Prices increased gradually through October and November, primarily driven by rise in imports and price adjustments from major suppliers like Saudi Arabia and Algeria. Chemical industry demand for Propane also remained steady throughout the quarter. However, the market stabilized in December, with major stakeholders maintaining prices at previous levels. Overall, the region saw strong demand from both domestic and international markets, with stable pricing toward the end of the quarter, particularly influenced by Saudi Aramco's decision to maintain its official selling prices.

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, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

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.