Propane Price Trend

For the First Quarter of 2022


The average price of Shandong propane market was 6,453.25 RMB/MT on February 28 and 7,438.25 RMB/MT on March 7, an increase of 15.26% over the week and an increase of 84.42% over the same period last year. The domestic propane market had climbed dramatically in Q1 2022, with most prices rising to approximately 7,500 RMB/MT. The present market has a lot of advantages. For starters, the continuing rise in worldwide crude oil has given the market a lot of support. Furthermore, in March, the CP price was established, and both butane and propane prices jumped rapidly, and the cost side was advantageous. The supply side of the market was quite modest at the time, and the upstream inventory was generally regulated, which had some advantages.

For the Fourth Quarter of 2021


Asian LPG prices fell to their lowest level in over five months, converting the CFR North Asia propane vs January CP swaps difference to a discount, with mounting demand worrieks in the aftermath of the coronavirus omicron strain. On December 2nd, CFR North Asia propane was evaluated at 649.5 USD/MT, down 49.5 USD/MT and matching the June 30th level. The disparity between CFR North Asia propane and January CP swaps fell to a 50 cents/MT. On December 3rd, the CFR North Asia LPG market was at 639 USD/MT, down from 647USD/MT on December 2nd, suggesting continuously unfavorable market sentiment.


LPG departures from the United States bound for Europe climbed dramatically in the third week of November, despite the Panama Canal's increasing delays. Exports jumped from an average of 170 kbd to nearly 600 kbd in the third week of November, and subsequently averaged a still strong 230kbd. Arrivals in Europe were expected to increase significantly the week through December 12.

North America

At 1.41 USD/gal at the Texas trading centre of Mont Belvieu, on-the-spot prices were nearly treble those of the previous two Octobers. The average residential price in the United States, as reported by the Energy Information Administration, increased by 50% year over year to $2.69 a gallon. Prices had not been this high in a decade heading into winter, which was terrible news for rural Americans who relied on the fuel to remain warm. Propane is used to heat around 5% of American residences. Apart from home use, it is used to power forklifts, heat hotel pools, and is used in large amounts to manufacture polypropylene, a type of plastic.

Latin America

Waterborne propane imports to Mexico's east coast increased by 4.5% to 1.09 USD/USG on 10th December, up from 1.07 USD/USG on 3rd December. In recent weeks, the impact of increased worldwide prices was felt in Mexico.

For First, Second and Third Quarters of 2021


The Asia Pacific region's supply was balanced in the first quarter of 2021. The demand increased when the Asia-Pacific area's winter season began, particularly in the northeast Asian region for heating purposes. Saudi Aramco, a key supplier in the Asia Pacific area, increased propane prices in all of its importing markets many times during the first quarter. Propane prices settled at 624 USD/MT in March, indicating an increase of 70 USD/MT over January settlements. During the second quarter of 2021, demand for Propane in the Asia Pacific area remained optimistic, but supplies improved, with US LPG supply to East Asia being less constrained than in the previous quarter. Offtakes from home and industrial applications were constant. The upward trend in price continued, with Saudi Aramco proposals for the APAC area doubling in size, with negotiations concluding at 530 USD/MT for Propane, up by 35 USD/MT in June. Propane prices in the area increased significantly in the third quarter of 2021. In terms of demand, this quarter saw robust offtakes from residential and industrial applications. Increased natural gas and crude oil prices, combined with optimistic winter requirements, bolstered the third-quarter demand picture.


The region's supply was constricted, as imports from the US fell as local demand in the US gulf region increased, followed by adverse weather conditions in the Northwest European region. The demand prognosis for Propane in Europe remained modest due to decreased LPG offtakes for heating purposes during the offseason. Propane prices in Europe are normally lower during the summer months, as home heating demand declines, particularly in the largest exporting country, the United States. However, demand from energy generation and industrial purposes remained robust, bolstered by improving purchasing attitudes. The general market prognosis was positive as propane prices increased significantly in Europe during Q3 of 2021. Propane prices CIF Amsterdam-Rotterdam-Antwerp (ARA) increased by around 250 USD/MT from June to 778 USD/MT in September, which were the highest levels since 2014. Exports were constrained by low US stock levels at a time when European importers were trying to replenish their inventories.

North America

Supplies were severely curtailed in the first quarter of 2021 owing to severe freeze weather conditions in the US Gulf area. Increased demand and poor supply contributed to a massive increase in propane prices in the North American area. In the final week of March, the average price of residential propane in the United States was about 606 USD/MT. The area's propane-butane supply forecast improved in contrast to the previous quarter, as production facilities in the USA Gulf region reported increased operational efficiency following the devastation caused by winter storm Uri. However, as their use in residential areas increases, regional LPG prices in Texas increased by 36% since January 2021.

Propane prices continued their upward trajectory, aided by a surge in the price of crude oil. The prices increased significantly in the third quarter of 2021 in the area. Propane prices in the primary US hub reached all-time highs in September, owing to restricted global supply and high demand. Propane, a byproduct of natural gas production, also saw a substantial decrease in inventory levels, despite the fact that manufacturers historically maintained large winter stocks due to the US's reliance on LPG for heating. Propane futures traded at $1.09 and 95 cents a gallon, respectively, at hubs in Mont Belvieu, Texas, and Conway, Kansas during the month of July.

Latin America

Sales decreased in 2021 compared to 2020, which was an outlier year due to increasing demand. In Brazil, individuals cooked more at home in 2020, boosting LPG cylinder sales. Demand for LPG was also boosted by the emergency social handouts in 2020, as family income levels climbed. In 2021, cylinder sales declined by 4% as consumers returned to restaurants and increased their social interactions. However, robust consumption was reported in 2021, and sales remained above pre-pandemic levels.

For the Year 2020


Propane demand in Asia remained robust, since nations such as China and India rely heavily on imports of this gas. India imports around 70% to 80% of its natural gas from Middle Eastern nations. Propane prices climbed in Q4 2020, as crude oil and natural gas prices surged in the APAC region. Additionally, due to limited supply from Middle Eastern countries, October 2020 spot prices were higher. The prices stabilized in December 2020. Additionally, China's imports of propane increased significantly in Q4. China is one of the world's top users of LPG, with demand increasing due to the building of new petrochemical facilities and greenfield projects. Aramco had reduced the price of butane to 330 USD/MT in June, down from 340 USD/MT the previous month. (As of 31st May 2020)


European countries saw an increase in demand for the chemical as a result of the cold weather. Increased demand resulted in price increases in the European market. Saudi Aramco, the world's largest producer of propane, fixed the October 2020 contract price at 375 USD/MT and butane at 380 USD/MT, respectively. Propane prices increased by 10 USD/MT, as of September 2020. Demand was expected to grow in the following months as the winter season approached, and prices were expected to exceed 500 USD/MT in Q1 2021.

North America

High demand for propane was noted in North America as the seasons changed. Crude oil and natural gas prices steadily increased by 2-4% per month from September to December 2020. Propane and butane prices in the United States of America, Mexico, and Canada began an upward trend in Q4 2020, owing to the steady increase in the cost of the feedstock crude oil and natural gas. Due to seasonality, demand for propane increased. Propane rices in the region were projected to be about 400 USD/MT in December 2020. The spot market had a sharp increase in costs as a result of North America's gas crisis.

Latin America

The United States has been the leading exporter of LPG to Latin America and the world. As a result, Mont Belvieu serves as the benchmark pricing throughout Latin America. Supply and demand patterns in global LPG markets that impact Mont Belvieu pricing have a direct effect on delivery prices in Latin America. Delivered prices are the beginning point for the LPG cost that residential, commercial, industrial, and chemical users end up paying. These are made of the Mont Belvieu pricing, freight costs, and terminal fees. Delivered prices in Latin America climbed together with Mont Belvieu pricing over the previous few months.

Procurement Resource Database

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Procurement Resource provides latest prices of Propane. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.

Chart Description: 

Procurement Resource provides prices of Propane for several regions around the globe, which are as follows:

  • North America
  • South America
  • Europe
  • Asia Pacific
  • Middle East
  • Africa

About Propane:

Propane is basically a 3-carbon alkane. It is known to be in gaseous state at standard temperature and pressure, but it can easily be compressed to a transportable liquid state. It is also known as a by-product of natural gas. It is most commonly utilised as a fuel.

Chemical Formula of Propane: 

  • C3H8


  • Dimethylmethane
  • Propyl hydride
  • n-Propane

Molecular Weight: 

  • 44.1 g/mol

Industrial Uses: 

  • Adhesives and sealant chemicals
  • Adsorbents and absorbents
  • Fuels and fuel additives
  • Functional fluids (for both open and closed systems)
  • Intermediates
  • Laboratory chemicals
  • Processing aids, specific to petroleum production
  • Propellants and blowing agents

Production Processes: 

  • Production of Propane via Natural Gas; and via Petroleum Refining Process.

Production of Propane via natural gas involves the running of crude oil via gas trap in order to separate it into wet gas and oil. This step is followed by several other processes to obtain LPG, which is further finally divided into butane, isobutane and Propane.

Supplier Database: 

  • AmeriGas Propane, Inc.
  • Royal Dutch Shell (Shell)
  • Saudi Arabian Oil Co.
  • GAIL (India) Limited
  • China Petrochemical Corporation (SINOPEC)

Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.


The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).

Procurement Resource also provides the detailed production cost analysis of Propane See more


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