SunSirs: The Propane Market Fluctuated and Rose in September

Price trend

The domestic propane market fluctuated and rose in September. According to data monitoring by SunSirs, the average price of propane in the Shandong propane market was 5,475 RMB/ton on September 1, and 5,538 RMB/ton on September 26. The average price increased by 1.41% during the month, and a decrease of 2.89% compared to the same period last year.

Analysis review

In early September, international oil prices continued to rise, coupled with the introduction of a significant increase in CP prices at the beginning of the month, leading to an increase in import costs, and the domestic market actively pushing for an increase. The downstream actively entered the market, the upstream inventory was low, the goods were smoothly sold, and the market trading atmosphere was good. Subsequently, high priced propane was suppressed by the demand side, leading to an increase in upstream inventory, which stabilized after a decline in order to stimulate shipments. In the second half of September, international oil prices rose, import costs increased, upstream prices actively pushed up, and downstream buyers entered the market to buy up. During the end of the month, due to the approaching Double Festival, there was an increase in upstream willingness to sell goods, and factories gave up profits to sell goods, accelerating the decline in propane prices.

Saudi Aramco's September CP was introduced, with propane at 550 US dollars per ton, an increase of 80 US dollars per ton compared to the previous month; Butane was 560 US dollars per ton, an increase of 100 US dollars per ton compared to the previous month.

Market outlook

Overall, as of September 26th, the on-site inventory was relatively high, and the upstream was actively shipping. It is expected that the propane market will mainly decline in the short term.

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