SunSirs: The Propane Market Was Weak and Declined in April

Price trend

In April, the domestic propane market continued to decline, with a broad decline. According to data monitoring by SunSirs, the average market price of propane in Shandong on April 1st was 5,383 RMB/ton, and on April 26th it was 5,088 RMB/ton. The monthly decline was 5.48%, and a decrease of 21.43% compared to the same period last year.

Analysis review

The propane market remained weak in April and continued to decline due to demand drag. At the beginning of the month, the April CP was introduced, a sharp drop, the import prices were relative low and the profits for port traders were considerable. Crude oil prices skyrocketed, news support was limited, demand was weak, and demand for combustion was in off season. Under the constraints of the demand side, the propane market was weak and declining. In the middle of the month, the propane market experienced a rebound, with downstream bargains entering the market and periodic restocking, pushing propane up. But with the price rising to a high level, downstream enthusiasm for receiving goods decreased, and propane prices stopped rising and stabilized. As the end of the month approaching the holiday, there was a demand for downstream to stock, and propane prices began to strengthen

Saudi Aramco's CP was introduced in April, and the contract prices for propane and butane were significantly reduced, with propane at 555 US dollars per ton, a decrease of 165 US dollars per ton compared to the previous month; Butane was 545 US dollars per ton, a decrease of 195 US dollars per ton compared to last month.

Market outlook

Overall, with the May Day holiday approaching and downstream pre holiday stocking operations, demand is expected to increase. It is expected entering May, in the near future, the Shandong propane market will mainly rise slightly. However, overall demand remains weak and difficult to improve, with a long-term bearish outlook.

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