It is expected that LPG price will be stabilized next month. Recently, LPG showed sharp price rise.
February¡¯s importing price of LPG which affect March¡¯s price has gone down. Propane was $800/Ton and butane was $805/Ton. These prices are $70/Ton low than January¡¯s. However, the foreign exchange rate recently scored 948 korean won per dollar and it stiffens than January. Moreover, last month¡¯s price freezing in spite of LPG price rise causes has to be considered.
Considering various main causes, next month¡¯s LPG price is carefully expected to be decreased by 30~50 Korean Won per Kg.
If LPG local price of March decreases, consumers get the effect of price reduction in 4 months. Recently, local LPG price has started to rise(about 56 Korean Won per Kg) in November 2007, 92 Korean Won per Kg rised in December 2007, 150 Korean Won per Kg rised in January 2008, and price was freezed in February 2008.
In this situation of expecting LPG price reduction, the LPG price is expected to keep the steadiness after this time. In the early March, it was expected 20~30 dollars per ton. However, recently oil price re-rises and LPG importing price gets similar to last month. In addition, the Naphtha price smashed through $900/Ton and it hold up. So, butane which has a replacing effect to Naphtha may rise together.
However, there comes some expectation that overseas oil price which recently smashed through $100 per barrel may be stabilized. Therefore, importing price trend of LPG should be watched more.
This article is from ¡°The Korea Gas News¡±(Feb. 22, 2008)