Liquefied Petroleum Gas (LPG) Price Index: Recent Quarterly Update & Market Analysis

Liquefied Petroleum Gas (LPG) Price Index: North America and Global Trends Q2 2025

The Liquefied Petroleum Gas (LPG) Price Index serves as a vital indicator for energy markets, reflecting fluctuations in supply, demand, and global trade dynamics. In Q2 2025, LPG prices across major regions experienced notable declines due to a combination of weak export demand, high domestic inventories, seasonal consumption trends, and shifts in upstream crude oil costs. This article explores LPG price movements in North America, Asia-Pacific, Europe, South America, and the Middle East, offering insights into market trends, pricing drivers, and outlooks.

North America: Steady Decline Amid Oversupply

In the United States, the LPG Price Index witnessed a significant downturn in Q2 2025. Propane DEL Texas fell to USD 7.5/MMBTU, while Butane FD Texas declined to USD 7.1/MMBTU by late June. This represents a 12.6% quarter-on-quarter decrease, marking one of the sharpest contractions in recent months.

Key Drivers

1. Slump in Export Demand: U.S. LPG exports softened as global buyers, particularly from Asia and Europe, delayed shipments in response to lower crude oil and LPG prices.
2. High Domestic Inventories: Inventories remained elevated due to overproduction and weak seasonal consumption, putting downward pressure on prices.
3. Off-Season Consumption: Spring and early summer periods traditionally see lower LPG demand for heating, further reducing domestic consumption levels.

Despite this decline, the market remained liquid with active trading, supported by ongoing infrastructure capabilities in the Gulf Coast and Texas. Propane and butane storage levels in strategic hubs like Mont Belvieu and Conway were sufficient to meet seasonal demand spikes, ensuring stability in spot and contract pricing.

Get Real time Prices for Liquefied Petroleum Gas (LPG): https://www.chemanalyst.com/Pricing-data/liquified-petroleum-gas-lpg-16

Asia-Pacific (APAC): China Sees Bearish Movement

In China, LPG prices also trended lower during Q2 2025. Propane CFR Shanghai settled at USD 665/MT, while Butane CFR Shanghai fell to USD 630/MT by early June. The bearish movement reflected multiple market factors:

Key Factors

1. Saudi Aramco’s Lowered Contract Prices: Major suppliers such as Saudi Aramco cut contract prices for propane and butane, incentivizing buyers to delay or renegotiate purchases.
2. Reduced Crude Oil Costs: Falling crude oil prices influenced LPG contracts, prompting sellers to offer deep discounts on exports.
3. Competitive Regional Markets: Increased regional supply from India and Southeast Asia added downward pressure on Chinese import prices.

China’s demand remained stable but cautious, as industrial consumption for petrochemicals continued, while seasonal consumption for residential heating had already subsided. Overall, the Q2 trend reflects a cautious market environment driven by both global oversupply and domestic inventory levels.

Europe: Prices Range-Bound Amid Seasonal Softness

The European LPG Price Index recorded a 12.5% decline throughout Q2 2025, with minor fluctuations. By the end of June, Propane CFR Antwerp was USD 470/MT, and Butane CFR Antwerp stood at USD 475/MT.

Market Influences

1. Soft Seasonal Demand: Summer months historically see lower LPG consumption, especially for heating applications, limiting upward price momentum.
2. Logistical Disruptions: Transport challenges, including high freight costs and low Rhine water levels, temporarily affected supply but did not significantly impact pricing.
3. Competitive Refinery Pricing: Refineries across the ARA (Amsterdam-Rotterdam-Antwerp) hub offered competitive rates, keeping price levels in check.
4. U.S. Supply Influence: Ample LPG exports from the U.S. Gulf Coast added to European inventories, further supporting price moderation.

European markets remained range-bound in June, reflecting a balance between adequate supply and modest demand. Traders continued to watch shipping costs and regional inventory levels as key indicators for future price movements.

South America: Brazil Experiences Moderate Decline

In Brazil, the LPG Price Index recorded a 5.1% decline on a quarter-on-quarter basis. Butane CFR Santos was USD 583/MT, while Propane stood at USD 505/MT, largely unchanged despite ongoing logistical challenges.

Influencing Factors

1. Logistical Disruptions: Transportation bottlenecks and port delays affected product availability but were largely offset by steady domestic production.
2. Stable Domestic Demand: Industrial and residential consumption remained relatively consistent, cushioning sharper declines.
3. Global Price Pressure: International price movements, particularly from North America, influenced Brazil’s import parity, preventing significant price spikes.

Overall, Brazil’s LPG market in Q2 2025 demonstrated resilience amidst global volatility, with prices moderating but avoiding steep contractions seen in North America and Europe.

Middle East: Saudi Arabia Sees Controlled Price Reduction

In Saudi Arabia, the LPG Price Index declined by 4.4% in Q2 2025. Propane Ex-Work Dhahran settled at USD 600/MT, and Butane was USD 570/MT by late June.

🌐 🔗 Track real time Liquefied Petroleum Gas (LPG) and market trends on ChemAnalyst: https://www.chemanalyst.com/ChemAnalyst/PricingForm?Product=Liquefied%20Petroleum%20Gas%20%28LPG%29

Key Drivers

1. Contract Price Reductions by Saudi Aramco: Saudi Arabia’s leading exporter lowered propane and butane contract prices in response to softer crude oil markets.
2. Upstream Crude Oil Price Decline: Crude oil prices fell 1.8% following OPEC+’s agreement to increase production by 411,000 barrels per day. This downward trend directly influenced LPG pricing.
3. Stable Domestic Demand: Local consumption patterns remained steady, limiting extreme volatility in domestic pricing.

Saudi Arabia’s market strategy focused on maintaining competitiveness while adjusting for global oversupply. The controlled price reductions allowed exporters to retain market share in Asia and Europe, despite a challenging macroeconomic environment.

Regional Comparison and Key Takeaways

Observations

1. North America and Europe saw the sharpest declines due to oversupply and weak seasonal demand.
2. Asia-Pacific faced pressure from global price adjustments and competitive regional supply.
3. South America and Middle East experienced moderate declines, reflecting stable domestic demand and strategic export management.

Market Outlook: H2 2025

Looking forward, several factors will influence LPG pricing for the remainder of 2025:

1. Seasonal Consumption Patterns: Higher demand in winter months may provide upward price support in North America and Europe.
2. Crude Oil Price Volatility: Any significant movements in Brent or WTI prices will directly affect contract LPG pricing globally.
3. Export Demand from Asia: Recovery in Asian import demand, particularly in India and China, could tighten supply and bolster prices.
4. Geopolitical Factors: Middle East stability and OPEC+ production decisions remain critical for price dynamics.
5. Inventory Levels: Managing domestic and international inventories will continue to dictate short-term price trends.

Overall, while Q2 2025 marked a bearish phase for the LPG Price Index, the market fundamentals suggest potential for moderate price recovery in H2 2025, contingent on seasonal demand, global energy supply balance, and crude oil market trends.

Conclusion

The Liquefied Petroleum Gas (LPG) Price Index across North America and key global regions declined notably in Q2 2025 due to a combination of weak demand, oversupply, and falling crude oil prices. North America led the trend with a 12.6% drop, closely followed by Europe and Asia-Pacific markets. Meanwhile, South America and the Middle East experienced moderate declines amid stable domestic consumption and strategic price management by exporters.

As the global energy landscape evolves, market participants must closely monitor crude oil trends, export demand, and seasonal consumption patterns to anticipate LPG price movements. The Q2 2025 trends underscore the continued importance of regional and global factors in shaping the LPG market and highlight opportunities for buyers, sellers, and investors to optimize their strategies in a dynamic environment.

Contact Us:

ChemAnalyst

GmbH - S-01, 2.floor, Subbelrather Straße,

15a Cologne, 50823, GermanyH

Call: +49-221-6505-8833

Email: [email protected]

Website: https://www.chemanalyst.com/