Mid-Month to Mid-Month: Mid-January Prices Keep on Surging

During the latest mid-month period, posted prices at Mont Belvieu seemingly showed the effects of winter demand as they strengthened by just over 26.50 cents/gal., while spot prices jumped more than 33 cents. Group 140, Conway, Kan., postings ended with a 30.2-cent gain and spots pushed up 31.50 cents over the month.

The Mont Belvieu mid-December price, 73.923 cents/gal., came in 6.666 cents above than mid-November’s 67.257 cents, and 10.500 cents higher than a year earlier’s price of 63.423 cents. The next week the price rose by 5.917 cents to 79.840 cents, and with another increase to finish December at 84.007 cents. January began with prices jumping by 6.583 cents to 90.590 cents. At mid-month, postings soared once again, adding nearly 10 cents to hit 100.507 cents/gal.

Conway, Kan. posted prices began the period 5.53 cents above a month earlier, starting at 66.047 cents/gal. Compared to the same time in 2019, the 2020 prices were 7.403 cents stronger. The next week, the price increased 5.450 cents to 71.497 cents, followed by another good-sized addition to 76.397 cents to end December. The new month, and new year, saw prices surge again to 84.847 cents, and another leap to 96.247 cents to end the mid-January period.

Mont Belvieu spot propane opened the mid-December period at 60.00-67.00 cents/gal., 3.633 cents above than the previous month’s price, and a sizeable 10.75 cents higher than a year ago. The next week, prices added a sizeable 8.50 cents taking them to 68.50-69.25 cents, and the price bounced up again to finish the month at 71.75-74.00 cents. The New Year held a 10.50-cent gain that pushed spots to 82.25-82.75 cents. Mid-month saw sellers strengthening prices again, this time adding 11.125 cents to reach 93.375-94.00 cents.

Conway spots opened mid-month at 62.50-64.00 cents, a 7.625-cent increase from a month earlier, and 14.75 cents higher than a year ago. The following week saw a 3.25-cent addition to hit 65.75-66.50 cents, and another nearly 3-cent jump for buyers and 5.5 cent increase for sellers to reach 68.50-71.00 cents at month’s end. Prices kept moving ever higher, soaring around a dime on both side to 79.00-81.00 cents to begin the New Year. The mid-month period closed another 14 cents higher at 93.00-94.00 cents/gal.

SOURCE: The Weekly Propane Newsletter, January 14, 2021. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.