Price trend

In early July, the domestic propane market rose steadily, and the Shandong market rebounded slightly. According to the data monitoring of SunSirs, the average market price of the propane in Shandong was 6,025.75 RMB/ton on July 1, and the average price on July 6 was 6,050.75 RMB/ton, an increase of 0.41% during the period, and an increase of 25.06% compared with the same period last year.

Analysis review

At the beginning of July, the domestic propane market was generally stable, and the Shandong propane market increased within a narrow range. With the introduction of CP prices in July, although propane and butane both fell, the decline was smaller than expected, bringing relative support to the domestic market. In addition, the international crude oil market price pushed up, and the cost aspect was favorable for the market sentiment. The downstream entry into the market was warm and mild, and the market trading atmosphere was acceptable. Most of the upstream inventories in the Shandong market were in a controllable state, and most manufacturers mainly supported high prices.

Saudi Aramco's July 2022 CP announced that both propane and butane fell. Propane was 725 US dollars/ton, down 25 US dollars/ton from the previous month; butane was 725 US dollars/ton, down 25 US dollars/ton from the previous month.

Market outlook

At present, the market price of propane in Shandong is mostly around 6,000 RMB/ton, the upstream inventory is temporarily unpressurized, and the atmosphere of downstream entry into the market has improved slightly. However, as the international crude oil fell sharply, the news was negative on the market, which brought obvious restraint to the rebound. In addition, there is no improvement in the terminal demand. It is expected that the price of the propane market may weaken in the short term.

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