Based on about 500,000mt of monthly LPG exports by Saudi Aramco under long-term contracts and 75:25 of ratio between propane and butane, the company will reduce butane supply by around 25,000mt, said a source with a producer in the Middle East.
The cut was believed to be due to increasing LPG demand from Saudi Arabia, said the source. Saudi Kayan Petrochemical Co started trial run on Aug 4 and it was expected to consume about 250,000mt of LPG a year after its production stabilized, the source explained.
The supply drop may prompt some contract buyers to source spot butane, and this will likely tighten butane supply in the spot market and bolster up prices, market sources said.
Saudi Aramco will load most LPG cargoes on time, with some to be delayed by about one week, said international trading sources.
China Chemical Weekly: http://news.chemnet.com/en/detail-1403616.html
