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SunSirs: In Late December, the Propane Market First Rose and Then Fell

December 28 2020 13:50:19     SunSirs (John)

Price trend

In late December, the propane market fluctuated and rose as a whole, and the market fluctuated more frequently in the second half of the month, with prices mainly rising first and then falling. According to the data monitoring of SunSirs, the average market price of propane on December 14 was 3,835.00 RMB/ton, and the average price on December 25 was 4,007.50 RMB/ton. The increase in the second half of the month was 4.50%, an increase of 4.43% compared to December 1.

Analysis review

In the second half of December, the propane market trend can be divided into two parts. On December 15-22, the propane market rose rapidly. During the period, the port propane price was relatively strong, and the international crude oil fluctuated upward. The news was positive for the market mentality. Due to the low market price in the early stage, the market rose when it got better. The downstream mentality gradually improved, the enthusiasm for entering the market increased, the sales of manufacturers were good, the inventory was relatively low, the mentality was relatively strong, and the prices continued to rise. However, the rising market did not continue. On the 23rd, there was a price correction, but the magnitude was not large. Due to the continuous decline of international crude oil, the market mentality was suppressed, and the downstream replenishment ended with the end of replenishment. Most downstream delistings turned to wait-and-see, the market transaction range was obviously weakened, and prices fell.

In the international market, Saudi Aramco announced in December that the prices of propane and butane have increased. Propane was 450 US dollars/ton, an increase of 20 US dollars/ton from last month; butane was 460 US dollars/ton, an increase of 20 US dollars/ton from last month. In December, the CP rose was introduced, which brought benefits to the market.

Market outlook

At present, CP prices are expected to rise in January, which is good for the market mentality. The winter is still in the peak demand season and the downstream replenishment is mainly. However, the weak trend of international crude oil affects the market mentality. Near the end of the year, the propane market is expected to stabilize first and then rise in the short term.

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