Price trend

This week, the domestic propane market trend was weak, and Shandong propane market fell one after another, with significant amplitude. According to the data monitoring of SunSirs, the average price of Shandong propane market was 5,865.75 RMB/ton on October 17 and 5,738.25 RMB/ton on October 21, with a weekly drop of 2.17%, and 21.78% lower than the same period last year.

Analysis review

This week (10.17-21), the domestic propane market trend was weak, and the factory price of Shandong propane market fell continuously, with a relatively obvious range. During the week, negative factors in the market dominated, and in terms of cost, international crude oil prices mainly declined, affecting the market mentality. In addition, the decline in the price of the external market and the low import cost brought obvious negative effects. The manufacturer successively lowered the ex factory quotation of propane, mainly for delivery by profit-cutting. Downstream maintained replenishment on demand and was cautious.

Saudi Aramco announced in October 2022 that both propane and butane fell. Propane was 590 US dollars/ton, down 60 US dollars/ton from last month; Butane was US 560 dollars/ton, down 70 US dollars/ton from last month.

Market outlook

To sum up, although the benefits from cost are limited, terminal demand is expected to increase in the later period as the weather continues to cool. It is expected that the propane market may rise in the short term.

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