Entering November, propane continued its October upward trend, the direction of price increase remained unchanged, and continued to rise at the beginning of the month. According to the data monitoring of SunSirs, the average market price of propane on November 1 was 3,845.00 RMB/ton, and the average price on November 5 was 3,920.00 RMB/ton. The rate of increase during the period was 1.95%, an increase of 19.60% compared to October 1.
In November, the propane market continued to increase the ex-factory price. According to the data monitoring of SunSirs, the current average ex-factory price of propane in the Shandong market has reached 3,920 RMB/ton, which is only one step away from the 4,000 yuan mark. There are many favorable factors in the current market, supporting the continuous rise of propane. In the international market, international crude oil has risen for three consecutive times, and US crude oil inventories have fallen sharply, which is good for market mentality. In addition, the price of CP was released in November, and both propane and butane rose sharply, and positive factors still exist. In terms of demand, with the arrival of winter, the overall demand in the terminal market is better, the downstream replenishment cycle is shortened, and the sales of manufacturers are improving, which brings obvious support to the market. On the supply side, some refineries have resumed production, and the arrival of goods at ports has increased compared with the previous period, which has restrained price increases.
At present, the difference between the southern and northern markets of domestic propane still exists. At the beginning of the month, the northern market as a whole showed a continuous small rise, and the southern market as a whole showed a trend of first decline and then rise.
In the international market: Saudi Aramco launched CP in November 2020, propane was 430 US dollars/ton, an increase of 55 US dollars/ton from the previous month; butane was 440 US dollars/ton, an increase of 60 US dollars/ton from the previous month. With the introduction of CP in November, both propane and butane have risen sharply, supporting the domestic market significantly.
The current November CP surge is still good for the market, and the international crude oil surge has brought significant support to the market. In winter, terminal demand is strong, and the downstream market is more active in the fear of rising mentality. At present, there are many favorable factors in the market. It is expected that the propane market will still have room for growth in the short term.
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