SunSirs: Cost Support Was Limited, Propane Market Declined Significantly

Price trend

This week, the domestic propane market returned to a weak position, and the price of the Shandong market fluctuated and fell, with a significant range. According to the data monitoring of SunSirs, the average price of propane in Shandong on June 6 was 6,445.75 RMB/ton, and the average price on June 13 was 6,350.75 RMB/ton, a weekly decline of 1.63%, an increase of 47.84% compared with the same period last year.

Analysis review

Entering this week, the trend of the domestic propane market returned to weakness. The Shandong propane market only increased individually on the 6th, and then entered a sideways consolidation stage until the price fell on the 13th, and the magnitude was more conspicuous. Affected by the weakening of international crude oil, the benefits brought by the cost are limited, and the propane market followed the weakening. In addition, affected by the off-season factor, the terminal demand was limited, and the market trading atmosphere was general, the manufacturers mainly sold at a profit-cutting, and the price declined significantly.

Saudi Aramco's June 2022 CP announced that both propane and butane fell. Propane was 750 US dollars/ton, down 100 US dollars/ton from the previous month; butane was 750 US dollars/ton, down 110 US dollars/ton from the previous month.

Market outlook

Although the current international crude oil prices fluctuated downward, due to the relatively high price, the cost still brought some support to the propane market. However, the demand was weak, the enthusiasm for entering the market in the downstream was limited, the market trading atmosphere was general, and the manufacturers mainly sold at a profit-cutting. It is expected that the propane market price may continue to decline in the short term.

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