On December 10, the China Liquefied Petroleum Gas (LPG) Comprehensive Import CIF Price Index released by the General Administration of Customs' Global Trade Monitoring and Analysis Center and the Shanghai Petroleum and Natural Gas Exchange showed that from December 1 to 7: China's comprehensive import CIF price index for liquefied butane stood at 106.64 points, down 0.35% month-on-month and 19.16% year-on-year.

Saudi Aramco's published CP price data for December 2025 shows: December butane was $485/ton, up $15/ton month-on-month but down 23.02% year-on-year. The rise in Saudi CP prices for December may impact current domestic and international LPG market price levels.

As of last Friday, the settlement prices for the front-month Brent and WTI crude oil futures contracts were $63.75/barrel and $60.08/barrel, respectively, representing weekly increases of 2.20% and 2.61%. The international crude oil market fluctuated within a range, supported by OPEC+ maintaining its production freeze plan, geopolitical conflicts, and expectations of Fed rate cuts, but gains were capped by rising U.S. inventories and oversupply concerns. The international LPG market fluctuated under the influence of spot and crude oil markets. January shipment demand in the Middle East remained robust with active negotiations, driving prices higher due to tight supply. The Far East market initially found support from demand but later turned downward as arbitrage opportunities in the region diminished.

In the domestic market, LPG supply decreased while demand increased, fostering a positive trading atmosphere. From the supply perspective, last week saw actual domestic LPG imports arrive at 558,000 metric tons, down 18.06% week-on-week, with shipments primarily destined for Fujian. Domestic production, mainly from local refineries, decreased by 0.86% week-on-week. Overall, total domestic LPG supply declined compared to the previous week. On the demand side, residential gas combustion improved; Chemical demand saw a slight decline. In the propane deep processing sector, PDH plant operating rates increased, boosting chemical demand for propane. In the butane deep processing sector, MTBE operating rates remained stable while alkylation operating rates rose, increasing chemical demand for butane. Overall, the domestic LPG market was supported by the upward revision of the December CP, which raised import costs and bolstered market sentiment, alongside improving supply-demand fundamentals.

Due to trade processing delays, China's LPG import landed prices typically lag behind international futures and spot prices. Recent fluctuations in overseas LPG prices will gradually manifest in future import landed prices.

The China LPG Comprehensive Import CIF Price Index is jointly compiled by the Global Trade Monitoring and Analysis Center of the General Administration of Customs and the Shanghai Petroleum and Natural Gas Exchange. It uses the first calendar week of 2019 as its base period (with China's comprehensive import CIF price for liquefied propane at 3,541 yuan/ton and a price index of 100; with China's comprehensive import CIF price for liquefied butane at 3,535 yuan/ton and an index value of 100). It comprehensively reflects the price level of China's LPG imports during the preceding week.

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