Asia’s Propane-Butane Spread Narrows on Shift to Mixed US Cargoes

Asia’s propane-butane price spread is narrowing as U.S. suppliers shift from lifting propane-heavy cargoes to evenly split propane-butane mixes, market sources told OPIS.

OPIS assessed CFR Japan physical butane cargoes at a premium of $30-$35 per metric ton over propane in January. The spread has since narrowed, with the butane premium over propane falling from the low $20s/mt in the first week of February to $15/mt on Monday.

The shift in cargo composition has lifted butane availability relative to propane in Asia, putting downward pressure on the premium over propane.

“If this continues, we could see a rebalancing of the relative supply of propane-heavy, butane-heavy and mixed cargoes in Asia. Previously, very few U.S. mixed cargoes arrived in the region; most cargoes were full propane ones. In the coming months, mixed cargoes will take up a higher proportion of U.S. LPG arriving in Asia,” a trader said.

Vortexa data estimates U.S.-origin mixed cargoes entering Asia at 94,400 mt in February, up from none in January, with most volumes going to Indonesia and China, at 47,800 mt and 46,600 mt, respectively. The total is expected to rise sharply in March to 296,800 mt, with all volumes heading to China.

Mixed cargoes accounted for 3.3% of the total LPG mix into Asia in February, rising to 14% in March.

Sources added that with U.S. suppliers moving away from propane-heavy cargoes, full propane shipments to Asia are also falling. This reduces propane availability compared with butane and supports propane prices.

U.S.-origin full propane cargoes to Asia totaled 2.5 million mt in January, and are estimated to fall further to 2.3 million mt in February and 1.47 million mt in March, according to Vortexa.

OPIS previously reported that butane commanded a premium over propane in the third quarter of 2025, the first time in the year, when there were fewer butane exports to Asia ahead of the winter months. U.S. refiners retained butane for domestic gasoline blending to meet winter specifications, limiting exports to Asia.

On Monday, the OPIS CFR Japan propane flat price closed at $599.50/mt, while butane was assessed at $614.50/mt, $15/mt higher than propane.

—Reporting by Cheryl Lee, clee@opisnet.com; Editing by Mei-Hwen Wong, mwong@opisnet.com