SunSirs: The Propane Market Fell Back from a High Level in February

Price trend

In February, the domestic propane market fell as a whole, and the propane market in Shandong fell in shock. According to the data monitoring of the SunSirs, the average market price of propane in Shandong Province was 6,445 RMB/ton on February 1 and 6,132 RMB/ton on February 27, with a decrease of 4.85% in the month, and down 2.2% from the same period last year.

Analysis review

In February, the domestic propane market fell back from a high level. At the beginning of the month, the introduction of CP in February, the import cost rose sharply, and domestic enterprises intended to continue to push up, but the downstream follow-up was slow, and began to appear resistance. The prices of individual factories were slightly reduced. At the same time, the stage replenishment in the downstream was coming to an end, and it was mainly based on rigid demand. On the news side, the crude oil had fallen many times, which depressed the mentality of the operators, and the port supply had been increasing, further forming negative factor for the propane market. The peak season of downstream chemical and combustion demand had passed in the month, and some chemical products had been affected by high cost, resulting in reduced profits, resulting in lower start and demand, and further lowered propane prices

Saudi Aramco introduced CP in February 2023, and propane was 790 US dollars/ton, up 200 US dollars/ton from last month; Butane was 790 US dollars/ton, up 185 US dollars/ton from last month.

Market outlook

In general, the CP price is coming soon in March, and the expectation of decline will not be reduced, which will further affect the mentality of the industry. Under the sluggish demand, the negative factors on the market will be superimposed. It is expected that the propane market will continue to be weak and downward in the short term in March.

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