Price trend

Shandong propane prices fell significantly this week due to various influences. According to the data monitoring of SunSirs, the average market price of propane in Shandong was 5,570 RMB/ton on December 12, and 5,457 RMB/ton on December 16. The weekly drop was 2.02%, and up 1.52% compared with the same period last year.

Analysis review

This week (12.12-12.16), domestic propane fell as a whole, especially in Shandong. During the week, the inventory of Shandong market was at a high level. In order to stimulate to delivery, the refinery sold goods at a discount, and the price of the external market continued to fall, which depressed the mentality of the operators. The downstream wait-and-see atmosphere was strong, and demand was restrained. As of Friday, the mainstream price of propane in Shandong market was 5,400-5,500 RMB/ton, down 150-200 RMB/ton from the beginning of the week.

Saudi Aramco introduced CP in December 2022, with propane of 650 US dollars/ton, up 40 US dollars/ton from last month; Butane was 650 US dollars/ton, up 40 US dollars/ton from last month.

Market outlook

On the whole, due to the recent mask incident, demand and transportation are restricted, and the inventory pressure of the cargo holders remains. In order to stimulate to sell goods, it is expected that the propane market will continue to decline next week.

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