LPG prices in Poland and Ukraine reach year highs
MOSCOW - Spot prices for tank-car shipments of propane-butane mix at the Brest-Malashevichi border crossing, between Poland and Belarus, rose by 6.0 percent to its highest point this year, $440-$450 a tonne over the period October 24-30.
Propane fraction prices for the same period were up by 6.7 percent to $475-$485 a tonne, Reuters monitoring showed.
Propane-butane mix prices at the DAF Brest-Malashevichi border were up by 25.4 percent, or by $90 a tonne, in October; propane fraction prices for the same period rose by 23.1 percent, or by $90 a tonne, Reuters calculations showed.
Propane-butane mix prices on the Polish eastern border over the week rose due to increased demand and limited LPG supply from Russia, Belarus and Kazakhstan.
Some LPG volumes were forwarded from the Polish market to the more attractive Ukrainian market, traders said.
The differential between propane quotes at the eastern Polish border and in northwest Europe over the reviewed period was plus $135 a tonne in favour of the Polish market, from plus $110 a tonne in favour of the Polish market a week earlier ($480 a tonne vs $340-$350 a tonne).
Some traders said that a few LPG tankers from Ust-Luga, Scandinavia and UK came to Poland through the LPG terminal in Gdansk over the week.
Average propane-butane mix prices on the Polish domestic market for October 24-30 were up by 100 zlotys a tonne, or by $19 a tonne to $530 a tonne.
FCA prices of propane-butane mix at Polish terminals were up thanks to increased market participants’ activity and a limited LPG supply in the region.
Novatek Polska reported that propane-butane prices on FCA Malashevichi basis (excluding excise tax and fuel tax) rose to 2,030 zlotys a tonne from 1,940 zlotys a tonne a week earlier.
The price in dollar terms rose 3.2 percent to $524 a tonne, Reuters calculations showed.
Average FCA prices of propane on the Polish domestic market over the week were up by 130-140 zlotys a tonne, or by $26 a tonne to $556 a tonne.
Russian gas processing and petrochemicals company Sibur said it has sold a LPG and light oil products terminal in the Baltic port of Ust-Luga and expects the new owners to expand the terminal’s capacity by 30 percent.
BALKANS, BLACK SEA AND EASTERN EUROPE
LPG prices in Bulgaria were stable over the week, traders said.
In Romania and Serbia, LPG prices were up over the week due to the increase in prices at the Brest-Malashevichi border crossing.
Propane-butane mix prices in Serbia, loading from an NIS plant in Panchevo, were up by 2,000 dinars a tonne to 58,000 dinars a tonne (excluding value-added tax and excise tax), or by $10 a tonne to $528 a tonne.
Propane-butane mix prices, supplied from NIS gas filling stations in Serbia, were up by 2,000 dinars a tonne to 58,500 dinars a tonne (excluding value-added tax and excise tax), or by $10 a tonne to $532 a tonne.
Propane-butane mix prices, with loading from Black Sea ports, remained at $330-$340 a tonne (FOB Black Sea) over the week due to a decrease in market activity.
Some exporters diversified their LPG shipments from these destinations to more attractive markets in Poland and Ukraine, traders said.
UKRAINE AND BELARUS
Propane-butane mix prices at the Ukrainian border were up by $30 a tonne to reach its highest point this year, $435-$445 a tonne (DAF Russian-Ukrainian border) over the reviewed period, despite increased LPG supply from Russia and Kazakhstan.
Propane-butane mix prices at the DAF Russian-Ukrainian border were up by 46.7 percent, or by $140 a tonne in October, Reuters calculations showed.
Ukraine, an important consumer of LPG, is tentatively turning to Western suppliers as it aims to wean itself off Russian and Belarusian imports.
ANALYSIS-Ukraine looks to shed dependence on Russian LPG
Belarusneft, owner of Belorussian gas processing plant (GPP), tendered 3,300 tons of LPG from Belorussian GPP for delivery in November. The tender closed on October 30.
Belarusneft also tendered 128,750 tonnes of propane, butane and isobutane and 36,800 tonnes of pentane and isopentane from Belorussian GPP for delivery in January-December 2016. The tenders closed on November 2 and November 5.
For world LPG prices, please click on RIC .
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