SunSirs: The Price of Propane Stopped Falling and Rose in July

Price trend

In July, the domestic propane market stopped falling and rebounded. According to data monitoring by SunSirs, the average market price of propane in Shandong on July 1st was 3,905 RMB/ton, and on July 27th it was 4,280 RMB/ton, an increase of 9.6% during the month and a decrease of 25.56% compared to the same period last year.

Analysis review

In July, the Shandong propane market ended its downward trend and began to stop falling and rise. At the beginning of the month, due to the increase in refinery prices at the end of June, there was a clear resistance from downstream suppliers towards high priced goods, resulting in a significant decrease in buying gas. Coupled with the impact of low-priced imported goods, refinery inventory pressure increased. In order to stimulate sales, prices corrected. Subsequently, international oil prices continued to rise, international liquefied gas prices rose, and downstream investors actively entered the market to restock with a bullish attitude. Domestic propane continued to rise. On site inventory had decreased to a low level, while propane had risen to a high level. Downstream resistance became increasingly strong, and the propane market had slightly increased in price.

Saudi Aramco's June CP was introduced, with propane at 450 US dollars per ton, a decrease of 105 US dollars per ton compared to the previous month; Butane was 440 US dollars per ton, a decrease of 115 US dollars per ton compared to the previous month.

Market outlook

Overall, the propane market was actively pushing up. Considering the continuous purchasing capacity of downstream markets, it is expected that there will be increased resistance to further rise in the future, and it is expected that the propane market will mainly experience a slight increase in the short term.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.