SunSirs: The Propane Market Rose First and Then Fell in August
August 31 2023 09:31:59 SunSirs (John)
Price trend
The domestic propane market saw a significant increase in August. According to data monitoring by SunSirs, the average market price of propane in Shandong Province was 4,718 RMB/ton on August 1st, and 5,343 RMB/ton on August 30th. The monthly increase was 13.25%, and a decrease of 10.2% compared to the same period last year.
Analysis review
In the first half of August, the domestic propane market showed a significant increase, while in the second half, the increase was slightly reversed. At the beginning of the month, the CP price increase was introduced in August, boosting market confidence. In addition, with low inventory in the region, refineries actively pushed up prices, and prices continued to rise until mid month. As of August 15th, the average domestic propane price had risen to 5,550 RMB/ton, an increase of 17.64% compared to the beginning of the month. Subsequently, the market entered a stage of correction and consolidation, and downstream consumers began to resist high priced sources of goods. Especially, the profit of PD devices tightened, affecting the start of production. To stimulate sales, the focus of propane trading shifted downward in shock.
Saudi Aramco's August CP was introduced, with propane at 470 US dollars per ton, an increase of 70 US dollars per ton compared to the previous month; Butane was 460 US dollars per ton, an increase of 85 US dollars per ton compared to the previous month.
Market outlook
Overall, the propane market prices remained high by August 30th, and downstream replenishment enthusiasm was not high, leading to an increase in inventory. It is expected that the propane market will continue to decline slightly in the short term.
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