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SunSirs: The Post-holiday Propane Market Growth Is Strong Due to Favorable Factors
October 14 2020 08:03:52SunSirs(John)

Returning from the National Day holiday, the propane market stopped falling and picked up, ushering in a wave of gains. According to the data monitoring of SunSirs, the average market price of propane on October 1 was 3,27.50 RMB/ton, and the average price on October 12 was 3,525.00 RMB/ton. The post-holiday increase was 7.55%, an increase of 1.95% compared to September 1.  

Downstream stocking market ended, hydrogen peroxide market dropped

Although September had ushered in the traditional peak season for sales, the propane market had been falling frequently, and the peak season was not busy. The most important point was the demand side. Entering September, terminal demand had slowly increased. Although the weather had cooled, overall demand had not increased significantly. The market was still in a weak state. The downstream market was generally enthusiastic and cautious, and basically maintained replenishment operations. In addition, the trend of international crude oil fluctuated and declined, and the news was negative for the market mentality. In addition, in late September, the concentration of cargo ships at the port brought significant pressure on the market. The sales of manufacturers are weak, and continuous profit transfer stimulates downstream entry into the market.

After the holiday, propane rose significantly and the market transaction atmosphere was positive. CP was released in October. Propane and butane have risen to varying degrees. In addition, international crude oil rose significantly on the first day after the holiday, and the cost of imported gas was high. There were many favorable factors that promoted the upward trend of propane. In October, the weather temperature dropped significantly, and terminal demand increased. The downstream had a strong bullish attitude towards the market outlook, actively entering the market, and a good market transaction atmosphere. The mentality of refineries was firm, and ex-factory prices were continuously raised, and inventories were mostly at low levels.

In the international market, Saudi Aramco launched CP in October 2020. Propane was 375 US dollars/ton, an increase of 10 US dollars/ton from the previous month; butane was 380 US dollars/ton, an increase of 25 US dollars/ton from the previous month.

On the demand side, as the weather gradually cools down, terminal demand is expected to rise. And supported by the high port price, the industry has a better attitude and is more active in entering the market. Manufacturers sell their goods smoothly, their inventory is mostly maintained at a low level, and their mentality is firm. It is expected that the propane market may still rise in the short term.

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