SunSirs: The Propane Market Fluctuated and Declined in October
October 31 2023 10:58:37 SunSirs (John)
Price trend
The domestic propane market fluctuated and declined in October. According to data monitoring by SunSirs, the average market price of propane in Shandong was 5,538 RMB/ton on October 1st, and 5,445 RMB/ton on October 28th. The monthly decline was 1.67%, and a decrease of 2.38% compared to the same period last year.
Analysis review
The domestic propane market showed weak performance in October, with a decline during the peak season. After the holiday, the transportation capacity within the industry had recovered, and downstream stage replenishment had led to a temporary increase in prices. Subsequently, international oil prices weakened, and there was sufficient supply on the market, resulting in a rapid decline in prices. Downstream bargains entered the market, while upstream actively pushed up, but the upward momentum was insufficient, and then turned down. Under the contradiction between supply and demand, the decline in the propane market in October was greater than the increase, and the overall price declined.
Saudi Aramco's October CP was introduced, with propane at 600 US dollars per ton, an increase of 50 US dollars per ton compared to the previous month; Butane was 615 US dollars per ton, an increase of 55 US dollars per ton compared to the previous month.
Market outlook
Overall, with the upcoming launch of the CP in November, there was a strong bearish atmosphere on the market. As of the 28th session, propane prices were still at a high level, and downstream investors were looking for bargains to enter the market. There was a clear resistance to high prices, and it is expected that the center of high propane prices will shift downward in the short term.
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