Crude Futures Firm on Spot Demand
Crude oil futures firmed amid firm spot demand, with both major global benchmarks edging higher in trade. Increased positioning by market participants reflected continued underlying demand support.
Propane Price Trend Analysis 2026: Supply Demand Analysis, Latest News, Market Insights, Price Drivers & Historical Prices
Written ByPragati Agarwal
Propane Latest Development
Hormuz Disruption Tightens Global Oil Supply
Strait of Hormuz closure continues to constrain global oil supply, with observed output remaining significantly below year-ago levels. IEA revised its demand forecast downward as inventories fell to multi-decade lows, reinforcing upward price pressure and market volatility.
Propane Price Trend Q2 2026
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Propane | China | FOB | USD 855.67/MT | June 2026 |
| Propane | Saudi Arabia | CIF | USD 1,005.67/MT | June 2026 |
| Propane | USA | FOB | USD 1,010.67/MT | June 2026 |
| Propane | Netherlands | CIF | USD 1,005.67/MT | June 2026 |
| Propane | Brazil | CIF | USD 1,027.67/MT | June 2026 |
| Propane | China | FOB | USD 861.76/MT | May 2026 |
| Propane | Saudi Arabia | CIF | USD 929.34/MT | May 2026 |
| Propane | USA | FOB | USD 981.19/MT | May 2026 |
| Propane | Netherlands | CIF | USD 955.45/MT | May 2026 |
| Propane | Brazil | CIF | USD 994.00/MT | May 2026 |
Stay updated with the latest propane prices, historical data, and tailored regional analysis
- Global propane prices mostly eased in Q2’26, as regional supply balances softened despite LPG cargo disruptions and changing trade routes after Middle East flow issues.
- Feedstock availability stayed tied to natural gas processing and refinery runs, so export hub disruptions and run cuts tightened LPG supply at intervals.
- Downstream demand was mixed, with petrochemical buyers cautious, heating demand weak, and export channels absorbing excess volumes where domestic consumption stayed limited overall.
Asia
In China, the monthly average Propane price was ~RMB 3,309.79/MT in April and around RMB 3,119.05/MT in the subsequent month, showing a decrease of ~5.8%. Similarly, In Japan, the monthly average Propane price was ~JPY 70,130/MT in April and around JPY 66,086/MT in the subsequent month. The decline reflected softer buying after earlier LPG supply concerns, even as rerouted cargoes and higher freight kept spot availability tight for PDH units and crackers.
In India, the monthly average Propane price was ~INR 46,410.92/MT in April and around INR 43,734.34/MT in the subsequent month. Prices softened as buyers resisted high import costs, while supply uncertainty from Middle East flows kept replacement cargo planning difficult.
Europe
In Germany, the monthly average Propane price was ~EUR 426.10/MT in April and around EUR 401.54/MT in the subsequent month, showing a decrease of ~5%. Warm spring weather reduced heating demand, while strong US propane inflows lifted inventories and lowered import premiums in Northwest Europe. Muted petrochemical demand and weak cracker margins also limited fresh spot buying.
North America
In the United States, the monthly average Propane price was ~USD 487.42/MT in April and around USD 459.31/MT in the subsequent month, showing a decreasing trend. High production and rising inventories created a supply-heavy market, while exports helped absorb surplus volumes. Softer PDH margin and limited downstream pull capped domestic demand growth.
Analyst Insight
According to Procurement Resource, near-term propane prices are likely to remain sensitive to Middle East cargos, freight costs, and refinery operating rates. Weak heating demand and high US supply may limit any sharp rebound.
Related Report
Need latest Propane price?
Get real-time price assessments, periodic trends, forecasts and price driver insights across key global markets.
Unlock Price Insights NowOur Clients
Procurement Resource Database
Turn price intelligence into action with the Procurement Resource Database. Log in or subscribe to unlock live price trends, historical charts, supplier databases, cost curves, and analyst-backed insights across chemicals, agriculture, energy, packaging, and more. Use these tools to benchmark your contracts, plan budgets with confidence, and stay ahead of market moves on every product you buy.
0
+Products
0
+Regions
0
+Subscriptions
- Propane prices followed a firm upward trend globally, supported by supply disruptions and higher logistics costs linked to Middle East tensions.
- Feedstock availability tightened as restricted flows through the Strait of Hormuz and higher freight and insurance costs increased production and transportation expenses.
- Downstream demand remained moderate, with steady consumption from heating, petrochemicals, and LPG blending, though economic pressures limited stronger growth.
Asia
Propane prices in Asia increased during Q1’26 due to supply constraints and rising logistics costs. The Iran war disrupted tanker routes through the Strait of Hormuz, through which a significant share of LPG trade flows, reducing availability and increasing freight and insurance costs, which led to price increases. In India, around 60% of LPG flows through Hormuz, and supply disruptions forced refiners to seek alternative sources such as Russian cargoes while adjusting maintenance schedules, tightening domestic availability. Demand from residential LPG consumption and petrochemical sectors remained stable, supporting prices despite broader economic pressures.
Europe
In Europe, propane prices remained firm as supply disruptions and higher import costs supported the market. Reduced Gulf exports forced buyers to compete for limited cargoes, increasing freight rates and insurance premiums, which led to price increases. LNG cargo rerouting also impacted overall energy logistics, tightening supply conditions for related fuels including propane. However, moderate downstream demand from heating and petrochemical sectors, along with economic slowdown concerns, limited sharper price increases.
North America
In North America, propane prices followed an upward trend supported by rising logistics costs and supply uncertainty. The Iran war increased freight and insurance costs for imports, while restricted tanker movement through Hormuz raised global supply concerns, which led to price increases. Domestic supply adjustments and increased inventory levels helped stabilize availability, preventing extreme price spikes. Demand from residential heating and petrochemical feedstock usage remained steady, supporting overall pricing.
About Propane
Propane is basically a 3-carbon alkane. It is known to be in gaseous state at standard temperature and pressure, but it can easily be compressed to a transportable liquid state. It is also known as a by-product of natural gas. It is most commonly utilised as a fuel.
Propane Product Detail
Hs Code
27111200
Chemical Formula
C3H8
Cas Number
74-98-6
Molecular Weight
44.1 g/mol
Industrial Uses
Adhesives and sealant chemicals, Adsorbents and absorbents, Fuels and fuel additives, Functional fluids (for both open and closed systems), Intermediates, Laboratory chemicals, Processing aids, specific to petroleum production, Propellants and blowing agents
Synonyms
Dimethylmethane, Propyl hydriden-Propane
Supplier Database
AmeriGas Propane, Inc, Royal Dutch Shell (Shell), Saudi Arabian Oil Co, GAIL (India) Limited, China Petrochemical Corporation (SINOPEC)
Regional Coverage
Asia Pacific
China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand
Europe
Germany, France, United Kingdom, Italy,Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece
North America
United States and Canada
Latin America
Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru
Africa
South Africa, Nigeria, Egypt, Algeria, Morocco
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
Propane Production Processes
- Production of Propane via Natural Gas; and via Petroleum Refining Process
Production of Propane via natural gas involves the running of crude oil via gas trap in order to separate it into wet gas and oil. This step is followed by several other processes to obtain LPG, which is further finally divided into butane, isobutane and propane.
Frequently Asked Questions
During Q1 2026, propane prices increased sharply in key regions. In China, prices showed a ~15.6% increase from January to March, while in the Netherlands they witnessed a ~ 20.4% increase. The rise was supported by higher import replacement costs, freight market volatility, tighter spot availability, and crude-linked energy market strength. While propane dehydrogenation (PDH) demand continued to provide an important consumption base in China, higher seaborne costs and concerns regarding Middle Eastern supply flows played a larger role in supporting prices during the quarter.
The propane outlook for 2026 remains firm but volatile. Prices will continue to be influenced by crude oil, NGL supply, freight costs, winter heating demand, and petrochemical consumption. China’s PDH sector is expected to remain the largest source of propane demand, although demand growth may moderate compared with earlier expansion phases. U.S. and Middle Eastern exports will continue to shape global supply availability.
The main factors affecting propane prices in Q1 2026 were higher import costs, freight market disruptions, and tighter seaborne availability. Supply concerns linked to Middle Eastern exports increased replacement costs for import-dependent buyers. China's petrochemical sector, including PDH plants, continued to support demand, while seasonal fuel consumption and stronger crude oil sentiment contributed to upward price pressure.
Major propane markets include the United States, China, Saudi Arabia, the Netherlands, Japan, South Korea, India, Canada, Qatar, and the United Arab Emirates. The United States and the Middle East are major export suppliers, while Asia and Europe are key consuming regions. Major companies include Enterprise Products Partners, Phillips 66, ONEOK, Saudi Aramco, ADNOC, QatarEnergy, Shell, BP, ExxonMobil, Sinopec, and PetroChina.
A major recent infrastructure development was AD Ports Group and Nimex Terminals’ February 2026 groundbreaking of a strategic LPG storage terminal at Khalifa Port in the UAE. The terminal is designed to handle propane, butane, and LPG mix products. Phase 1 includes refrigerated storage tanks, including a 50,000 cubic meter propane tank, strengthening regional storage and marine handling capacity for global propane trade.
Propane is mainly produced as a byproduct of natural gas processing and crude oil refining. The value chain includes gas production, crude oil refining, natural gas liquids recovery, fractionation, purification, pressurized or refrigerated storage, pipeline or marine transport, terminal handling, cylinder filling, bulk distribution, and final use in heating, cooking, agriculture, petrochemicals, autogas, and industrial fuel applications.
Major propane grades include commercial propane, HD-5 propane, petrochemical-grade propane, refrigerant-grade propane, and autogas-grade propane. HD-5 is widely used as consumer fuel and generally contains at least 90% propane with limits on propylene and heavier hydrocarbons. Petrochemical-grade propane requires tighter purity control because it is used as feedstock for propane dehydrogenation and other chemical processes.
Propane demand is mainly driven by residential heating, cooking, agriculture, petrochemicals, propane dehydrogenation, industrial heating, commercial fuel use, autogas, and power backup systems. In China, PDH demand is especially important because propane is converted into propylene for polypropylene and other downstream chemicals. In Europe, heating, industrial fuel, and petrochemical consumption support baseline demand.
A key policy development affecting propane markets in 2026 was the continuation of the U.S.-China trade truce through November 2026. Although broader tariff tensions eased, China maintained a 10% tariff on U.S. LPG imports, including propane. This continued to influence cargo sourcing decisions and encouraged greater reliance on Middle Eastern suppliers, affecting trade flows, freight patterns, and import replacement costs for Asian buyers.
Procurement Resource employs a structured methodology combining primary research, secondary market data, analytical models, and validation processes to assess propane prices and trends. Price evaluations incorporate supply-demand dynamics, feedstock movements, trade flows, and value chain analysis, supported by continuous market monitoring to ensure accurate and reliable insights.
Our Price Analysis Methodology
About the Author
Pragati Agarwal
Senior Business Insights Analyst
Delivering price trend analysis and procurement market insights at Procurement Resource, with expertise in identifying commodity patterns, supporting purchasing strategies, and improving cost efficiency through actionable market intelligence.
Schedule a demo
Experience how Procurement Resource transforms raw material price data into clear, decision ready intelligence. Optimise your performance with reliable, expert market data and analysis. Schedule your demo today to experience a live walk-through where our experts will showcase interactive price charts, forecasted prices, and insights driving the prices for your key commodities, tailored to your workflows. Contact us now!
Our Team will be happy to assist you
We are just a text away
Still Need Help?
Europe & Africa
+44 7573 171117
Sales@procurementresource.com
USA & Canada
+1 307 363 1045
Sales@procurementresource.com
APAC
+91 8850629517
Sales@procurementresource.com
Unlock full access to Procurement Resource's price databases, interactive charts, and short-term forecasts for thousands of commodities. Elevate your sourcing decisions by comparing prices across regions, downloading historical data, and layering in analyst-backed insights, all with our flexible plans that scale as your portfolio grows.
Still have any Questions
Contact Us
Price Trend Dashboard - What's Included
Price trends across a diverse portfolio of categories and products, spanning board to niche chemicals
Coverage extendable to grade-specific chemicals based on procurement requirements
Regular price tracking supported by robust historical datasets
News, policy updates, and key market drivers impacting price movements
Short-term and long-term price outlooks and forecasts
Supply-demand dynamics and capacity-driven market analysis
Why Procurement Database
Commodity Market Intelligence
Track prices, market movements, supply-demand dynamics, and industry developments across hundreds of commodities through a centralized intelligence platform built for informed procurement decisions.
Price Forecasts & Market Outlooks
Understand market fluctuations using analyst-backed forecasts, historical pricing patterns, and evolving industry trends to strengthen sourcing strategies and budget planning.
Cost & Procurement Optimization
Leverage cost models, pricing benchmarks, and procurement insights to evaluate purchasing opportunities, improve negotiations, and enhance operational efficiency.
Global & Regional Market Insights
Access region-specific price trends, trade activities, capacity changes, and supply chain developments influencing commodity markets worldwide.
1/4