SunSirs: In October, the Propane Market Rose First and Then Declined, with an Overall Increase

Price trend

In October, the domestic propane market trend was relatively strong, and Shandong propane market rose first and then declined, with an overall increase. According to the data monitoring of SunSirs, the average price of propane in the Shandong market was 5,578.25 RMB/ton on October 1 and 5,645.75 RMB/ton on October 26, with a monthly increase of 1.21%, and down 15.24% compared with the same period last year.

Analysis review

In October, the trend of domestic propane market was relatively firm, and the ex factory price of propane in Shandong market rose first and then fell. After the National Day holiday, the domestic propane market was driven by the rise of international crude oil during the holiday, ushering in a wave of growth. In addition, there was a certain demand for replenishment in the downstream after the holiday. The enthusiasm for entering the market was good, the manufacturers had a firm attitude, and the price increased widely. Subsequently, with the decline of international crude oil, the market mentality was affected. The downstream was cautious, and the delisting consumed inventory. The market trading atmosphere was weaker than in the early stage, and the propane market price fell back. However, in October as a whole, Shandong's propane market rose more than its decline.

Saudi Aramco announced in October 2022 that both propane and butane fell. Propane was 590 US dollars/ton, down 60 US dollars/ton from last month; Butane was US 560 US dollars/ton, down 70 dollars/ton from last month.

Market outlook

On the 27th, near the end of the month, supported by the cost side, the international crude oil rose by 3% on a single day, bringing obvious benefits to the market, and the Shandong propane market stopped falling and rose. In addition, November is coming. With the cooling weather and the arrival of the fuel market peak season, the terminal demand is expected to continue to grow. It is expected that the propane market price will be firm in November, and it may go up in shock .

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