Saudi Aramco may cut propane prices

By Dave Hannon -- Purchasing, 6/22/2007 7:15:00 AM

 The world’s largest producer of liquefied petroleum gas (LPG) may cut its prices in July as demand from the chemicals slackens.

Bloomberg is reporting that a recent survey of LPG traders found Saudi Aramco could lower prices of propane as much as by 3.4% to $572/metric ton from $592 by the end of June. “LPG may fall because of lower demand by chemical makers after naphtha prices softened,” said N. Ravivenkatesh, a Singapore-based analyst at Purvin & Gertz in a recent Bloomberg report.

In other news that may impact LPG prices, Mutsui and Marubeni have agreed to consolidate their LPG businesses by April 2008 and their distribution networks in April 2009 to cut costs and survive competition.