SunSirs: Weak Demand, Propane Continued to Decline
May 16 2023 10:25:13 SunSirs (John)
Price trend
This week, the decline in the domestic propane market increased, with a significant decline in the Shandong market. According to the Commodity Market Analysis System of SunSirs, the average price of propane in Shandong on May 8th was 4,933 RMB/ton, and on May 12th it was 4,680 RMB/ton. The weekly decline was 5.12%, and a decrease of 27.77% compared to the same period last year.
Analysis review
This week (5.8-5.12), the propane market further declined on a large scale. The factory gave up profits to sell goods, and downstream demand had not significantly improved. During the week, crude oil fell multiple times, suppressing market sentiment, while low port supply further impacted the high price propane market. Downstream demand was lower than expected, the market trading atmosphere was difficult to improve, on-site inventory was high, and factories were reducing prices to discharge inventory.
Saudi Aramco's May CP was introduced, and the propane contract price remained unchanged from last month, while the butane price slightly increased. Among them, propane was 555 US dollars per ton, which is stable compared to the previous month; Butane was 555 US dollars per ton, an increase of 10 US dollars per ton compared to the previous month.
Market outlook
Overall, in the off-season of demand, there is an expectation of an increase in port supply, highlighting the pressure on the supply side. It is expected that the propane market will be weak and downward in the short term.
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- 2024-04-23 SunSirs: The Propane Market Saw a Slight Increase This Week (April 15-19)
- 2024-04-15 SunSirs: The Propane Market Saw a Slight Increase This Week (April 8-12)
