Price trend

The trend of domestic propane market was weak this week, and the center of gravity of Shandong propane market moved downward. According to the data monitoring of SunSirs, the average price of Shandong propane market was 5,955.75 RMB/ton on September 8 and 5,915.75 RMB/ton on September 15, with a drop of 0.67% within the week, up 7.99% compared with the same period last year.

Analysis review

This week, the domestic propane market trend was weak, and Shandong propane market was dominated by weak consolidation, with prices falling first and then rising. Although there is little pressure on the supply side of the current market, the market benefits are relatively limited. In terms of raw materials, recently, the international crude oil has been dominated by shocks, with limited support from cost. Although entering September, the recent temperature drop is not obvious, the market demand is limited, and the enthusiasm of downstream market entry is not high. Most of them maintain the supplement on demand and mainly wait and see. The upstream inventory pressure is not large, and most of them support prices mainly.

Saudi Aramco announced in September 2022 that both propane and butane fell. Propane was 650 US dollars/ton, down 20 US dollars/ton from the previous month; Butane was 630 US dollars/ton, down 30 US dollars/ton from last month.

Market outlook

The current cost support is insufficient. In terms of demand, after the Mid Autumn Festival, the terminal demand is not significantly improved. The enthusiasm of downstream market entry is limited, and most of them maintain the demand based replenishment. The market trading atmosphere is general. The upstream inventory pressure is not big, and the mentality is relatively strong, but the market lacks the power to continue to rise. It is expected that the propane market will continue to consolidate in the short term.

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