Price trend
The domestic propane market fluctuated and rose in November. According to data monitoring by SunSirs, the average price of propane in Shandong's market was 5,490 RMB/ton on November 1st, and 5,688 RMB/ton on November 28th, with a monthly increase of 3.6%, and an increase of 0.28% compared to the same period last year.
Analysis review
In November, the domestic propane market first rose and then fell, with an overall increase. In early November, the on-site inventory of Shandong propane market was low, and the sales were smooth. With a sudden drop in temperature, downstream markets actively entered the market, while upstream prices rose. With the rise of propane prices to a high level, downstream resistance was evident, and there was a rebound in the increase. Entering mid November, the northern region experienced a surge in civilian demand due to the winter season, which steadily increased and supported the propane market. At the same time, chemical demand remained at a normal level, market supply and demand remained at a good level, downstream actively entered the market, and market prices remained stable. In late November, propane prices began to slightly decline, with downstream investors seeking dips and upstream investors adjusting flexibly, with a slight downward adjustment being the main focus.
Saudi Aramco announced its November CP, with propane at 610 US dollars per ton, an increase of 10 US dollars per ton compared to the previous month; Butane was 620 US dollars per ton, an increase of 5 US dollars per ton compared to the previous month.
Market outlook
Overall, with the upcoming release of the CP in December, there will be a concentration of imported propane arriving at the port in the future. Due to weak demand and weak price increases, closely monitor the dynamics of the external market. It is expected that the propane market will experience a narrow consolidation and operation in the short term.
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