Price trend

At the end of October, the domestic propane market was dominated by negative factors, and the price fell sharply. However, in November, the market increased positive factors, boosting the propane market, and the price stopped falling and rose. According to the data monitoring of SunSirs, the average market price of propane in Shandong on October 31 was 6,485.75 RMB/ton, and the average price on November 2 was 6,530.75 RMB/ton. The rate of increase during the period was 0.69%, and it was 11.87% lower than the price on October 24.

Analysis review

In November, the domestic propane market price stopped falling and returned to the upward path. The Shandong propane market rose slightly for two consecutive days, and the overall transaction atmosphere in the market improved. At the end of the month, with the introduction of CP in November, propane and butane continued to increase substantially, and the increase exceeded expectations. Import costs rose, which gave a significant boost to the domestic market. In addition, the high international crude oil prices had also brought certain support to the market. Affected by seasonal factors, the gas market is in the peak demand season, downstream demand is relatively strong, and the northern market has cooled significantly, and the demand is greater than that in the southern market. The overall shipment atmosphere in the Shandong market has improved compared with the previous period, the inventory has no obvious pressure for the time being, the mentality is firm, and the price has been steadily adjusted up.

Saudi Aramco announced in November 2021 that both propane and butane have risen. Propane was 870 US dollars/ton, an increase of 70 US dollars/ton from the previous month; butane was 830 US dollars/ton, an increase of 35 US dollars/ton from the previous month.

Market outlook

At present, the price of propane market in Shandong has returned to 6,500 RMB/ton. The supply side has not changed much, and the supply is relatively sufficient. The demand side is still expected to improve in the later period. The boost from the international market is obvious, the upstream inventory pressure is not large, and the mentality is relatively strong. The propane market price is expected to be firm in the short term.

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