Price trend

The domestic propane market trended strongly this week, and the focus of propane prices in the Shandong market moved up. According to the data monitoring of the business community, the average price of the propane market in Shandong was 5,830.75 RMB/ton on August 29, and the average price on September 2 was 5,963.25 RMB/ton, with an increase of 2.27% during the week, and an increase of 19.55% compared with the same period last year.

Analysis review

The domestic propane market trended strongly this week. The Shandong propane market rose first and then fell, and the center of gravity moved up. Driven by the rise of international crude oil in the early part of the week, the ex-factory price of propane reported high one after another, and the average price broke through the 6,000 RMB/ton level on the 31st. The downstream buying mentality was more active in entering the market, manufacturers were shipping smoothly, and inventories were reduced. However, in the later period, the international crude oil weakened one after another, and the support in terms of cost was insufficient. In addition, with the end of replenishment in the downstream, they were withdrawn from the market and wait-and-see. The propane market lacked the motivation to continue to rise, and the price fell on the weekend.

Saudi Aramco announced in September 2022 that propane and butane both fell. Propane was 650 US dollars/ton, down 20 US dollars/ton from the previous month; butane was 630 US dollars/ton, down 30 US dollars/ton from the previous month.

Market outlook

At present, the trend of international crude oil is weak, and the support brought by the cost side is insufficient. After the replenishment ends, the market is mostly delisted and wait-and-see, and the market trading atmosphere is general. However, there is currently no pressure on the supply side of the Shandong market, and the upstream inventory is mostly under control. It will take some time for the demand to increase, and it is expected that the propane market will fluctuate within a narrow range in the short term.

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