Strong Chemical Demand Underpinned International LPG Market
Backed by the rising crude oil prices, the international LPG prices saw notable increments. With the international crude oil prices fluctuating downward, the international LPG market moved sideways, dragging down LPG CFR East China. The international crude oil prices kept dipping in August 2025, but the international LPG market was relatively stable. According to SCI’s assessment, LPG CFR East China hovered at $555-565/mt, mainly backed by China’s chemical demand.
The demand for propane from PDH and cracking industries improved. In July 2025, China’s PDH unit operating rates averaged over 70%, and the overall unit operating rate surpassed 73% in August, facilitating the demand for propane. Meanwhile, PDH unit profits were relatively favorable, supporting the PDH unit operation.
The relatively strong butane demand also gave support to the international LPG market. Moreover, the butane supply in some regions even became tight with rising butane import volume.
Operating rates of iso-butane dehydrogenation units dropped to low levels and then rebounded in May. According to SCI’s data, iso-butane dehydrogenation unit operating rates reached about 90% in August 2025. The butane supply in Shandong and North China became tight with the capacity expansion at Huizhou Yussen Chemical and Hebei Kaiyi New Material Technology.
The relatively strong demand for industrial-use propane and butane underpinned the international LPG market and also alleviated sales pressure, supporting the civil-use gas market.
The overall chemical demand may remain strong in the short term. Therein, the demand for propane may perform well, backed by the PDH and cracking industries. Meanwhile, the demand for butane may be relatively high. However, operating rates of iso-butane dehydrogenation units are high, but unit profits further weaken, influencing the demand for butane. Accordingly, China’s butane demand may see minor improvements. Besides, with the approach of September, the civil-use gas market may boost the overall LPG demand.
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