In the second half of November, prices for liquefied gas at Polish terminals increased by $5-10/ton, to $635-675/ton, on FCA terms. Taking into account the cost of delivery to the Ukrainian border, the mixture also rose by $5-10/ton, to $670-729/ton. Companies are raising prices for the Ukrainian route, as the Polish alternative has grown.
“We started selling to Ukraine at the beginning of the week, but in the end everything went to the domestic market,” the trader said.
However, the interlocutor did not rule out that the Ukrainian route would soon become attractive again, as prices were rising.
Since mid-November, sales of autogas have been declining. At the same time, market participants note limited availability of the resource.
“Demand for the mixture is moderate, but in combination with small supply volumes, this does not allow prices to fall,” said a representative of the Polish company.
Also, according to market participants, an accident occurred at the hydrocracking unit at the Plock refinery. In this regard, ORLEN removed spot volumes from the market.
The increase in prices for the mixture is also contributed by the increase in the price of propane. During the week, wholesale batches of the product in Gdansk increased in price by $5-15/ton, to $675-700/ton FCA. Latvian volumes, taking into account delivery to the Baltic coast of Poland, were sold at a premium of EUR 179/ton to the average November quotations.
In northwestern Europe, propane rose in price by $12/ton during the week, to $453/ton CIF ARA. Butane quotations remained practically unchanged. In the ARA region, the product was traded at $494/ton versus $496/ton a week earlier. On the Belarusian-Polish border, the cost of railway consignments of butane was estimated at $492-521/ton DAP Brest, which is in line with the level of the previous week.
For the week of November 24-30, ORLEN Lietuva did not allocate volumes for Ukrainian counterparties.
“Most likely, ORLEN Lietuva is now rescuing its Polish colleagues, all the gas is going to Poland,” says one of the traders.
As a result, prices at Lithuanian trading companies increased by $20-32/ton, to $720-733/ton, taking into account the cost of delivery to the Polish-Ukrainian border. However, there are no buyers willing to buy the product at such prices yet.
There were no new offers of the mixture and propane at the Danube terminals of Romania last week. Representatives of Bulmarket and Interport Gaz reported that all volumes have been sold so far. Unicom Terminal received the Gremio and Gaz Venture vessels last week, the contents of which had been sold in advance. (Enkorr)