Singapore Softening North Asian heating demand ahead of summer and healthy supply to Asia from the US and Middle East in June have flattened the prompt month market structure and could soon move it into contango for the first time in seven months, trade sources said May 3.
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June/July CP propane swaps structure was indicated at parity May 3, steady to the April 30 value, and narrowing from a $4/mt backwardation April 28, S&P Global Platts data showed.
The front month structure has been in backwardation since Oct. 8, after standing at parity Oct . 7 and at a contango of between $1 and $17/mt between Sep. 18 and Oct. 6, according to Platts data.