November 2024 witnessed a decent surge in US LPG prices on the back of robust demand from the downstream blending and heating fuels and depleting propane inventories which created supply-side constraints. The export market was tightened due to labor disputes at US ports which further exacerbated higher LPG prices in November 2024. As the winter season progressed, the demand for LPG continued to remain strong which increased the trading activity.

The US LPG prices continued to surge during November 2024 on the back of supply tightness. Butane prices experienced a 1.3% increase, settling at USD 7.4/MMBTU Butane FD Texas. The tight supply conditions and robust demand for butane, particularly for blending purposes, pushed prices higher. Likewise, Propane prices also rose by 1.3%, reaching USD 7.8/MMBTU Propane DEL Texas. The surge in demand for propane, both as a heating fuel and a petrochemical feedstock, coupled with supply constraints, contributed to the price increase. As per the EIA data, exports of US Propane have surged from 2289 thousand Barrel per day in October to 2190 thousand Barrel per day during November 2024. The period following the US presidential election was characterized by a wave of market optimism, which further fueled demand for LPG. Investors and businesses alike were buoyed by the anticipated economic recovery and increased industrial activity. Moreover, the pre-Thanksgiving holiday season also contributed to a surge in LPG demand. Increased consumer spending and household activities, such as cooking and heating, led to higher LPG consumption.

Furthermore, as per US Energy Information and Administration, a notable decline in US Gulf Coast propane inventory levels further tightened the market supply, exacerbating the upward pressure on prices. As per the data, Propane inventories decreased by 0.7 million barrels during the last week of November and were 10% above the five-year average for this time of year. As stockpiles dwindled, concerns about potential shortages emerged, prompting buyers to secure supplies at higher prices. Moreover, labor disputes during November 2024 at US ports added to the supply-side constraints, leading to delays in the movement of LPG and further contributing to price hikes.

As per ChemAnalyst, the LPG prices in the USA may remain uncertain during December. However, Cashman Preload Cryogenics (CPC) has been selected by Delaware River Partners (DRP) to design, build, and equip a state-of-the-art storage tank in Gibbstown, New Jersey. This massive tank, capable of holding 100,000 cubic meters (or approximately 26 million gallons) of liquefied petroleum gas (LPG) and ammonia (NH3), will significantly enhance DRP's storage capacity and operational flexibility.