Price trend

In April, the domestic propane market operated in a volatile manner, with a slight increase. According to data monitoring from SunSirs, the average price of propane in Shandong's market was 5,190 RMB/ton on April 1st, and 5,205 RMB/ton on April 26th, with a monthly increase of 0.29%, an increase of 2.56% compared to the same period last year.

Analysis review

In April, the domestic propane market showed an average trend and struggled to rise. At the beginning of the month, due to high on-site inventory and increased willingness to discharge upstream inventory, propane prices fell. Subsequently, the supply pressure eased and downstream investors entered the market on dips. At the same time, crude oil prices rose, and supported by news, propane prices continued to rise until mid to late April. At the end of the month, the market was affected by the decline in external market prices, and propane prices rose and then fell back.

Saudi Aramco announced its CP of May 2024, with propane at 580 US dollars per ton, a decrease of 35 US dollars per ton compared to the previous month; Butane as 585 US dollars per ton, a decrease of 35 US dollars per ton from the previous month. Equivalent cost in onshore US dollars: 615 US dollars/ton for propane and 625 US dollars/ton for butane.

Market outlook

Overall, the decline in CP in May had led to an increase in downstream wait-and-see sentiment. As the May Day holiday approached, the willingness of upstream destocking had increased. It is expected that propane prices will experience a slight decline in the short term.

If you have any questions, please feel free to contact SunSirs with support@SunSirs.com.