Gulf Coast Propane Export Economics to Asia remains Weak
6/04 8:48 AM
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. (c) Copyright 2020 DTN, LLC. All rights reserved.
 
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