Gulf Coast Propane Export Economics to Asia remains Weak


   
    

   CANYON LAKE, Texas (DTN) -- Argus Far East Asia June index futures traded on 
the Chicago Mercantile Exchange settled Wednesday at $343.513 m/t or at 
approximately 66cts gallon, up $2.148 m/t or about 0.4cts from day prior, 
although arbitrage economics from the Gulf Coast remained near cargo 
cancellation levels.

   Enterprise spot propane edged 0.125cts higher Monday at 49.5cts gallon.

   With gross arbs at about 16.5cts gallon, Gulf Coast propane export economics 
to Asian markets are uneconomical when factoring in terminal loading fees and 
shipping costs to Asia, which are currently at about 12cts a gallon, said a 
market observer.

   "There has been talk about cancelled cargos for weeks, but now it seems like 
it's happening," he said.




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