Price trend

In January, the propane market fluctuated frequently, and the overall trend was rising. According to the data monitoring of SunSirs, the average price of propane in Shandong on January 3 was 5,780.75 RMB/ton, and the average price on January 12 was 5,995.75 RMB/ton, an increase of 3.72% during the period, an increase of 3.90% compared with December 1.

Analysis review

In January, the domestic propane market price sprinted to 6,200 RMB/ton and then fell back. The current price is mostly around 6,000 RMB/ton. With the introduction of CP prices in January, although propane butane all declined, the decline was smaller than expected. In the international crude oil market, successive rises after the New Year's Day brought significant support to the market. In addition, the weather cooled significantly in January. After the New Year's Day, there was a certain demand for replenishment in the downstream and their purchases were more active. The overall trading atmosphere of the market was good, manufacturers were shipping smoothly, and prices rose one after another. However, as the price of crude oil fell in the later period, the propane market followed the downward trend. Until the 12th, the international crude oil rose sharply again, and the propane market followed the trend and returned to the upward path.

Saudi Aramco's CP in January 2022 was introduced, and propane butane all fell. Propane was 740 US dollars/ton, down 55 US dollars/ton from the previous month; butane was 710 US dollars/ton, down 40 US dollars/ton from the previous month.

Market outlook

At present, the domestic propane market is up and down. The northern market is stable and upward, and the southern market is mainly weak. The international crude oil market continues to rise, which gives the market a certain boost. However, after the end of downstream replenishment, most of them are delisted from the market and wait and see, and the enthusiasm for entering the market has weakened compared with the previous period. It is expected that the propane market will lack the momentum to continue rising in the short term, and may oscillate within a narrow range.

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