SunSirs: The Propane Market Was Weakly Declined in March
April 01 2024 15:14:35 SunSirs (John)
Price trend
The domestic propane market experienced a weak decline in March. According to data monitoring by SunSirs, the average price of propane in Shandong's market was 5,263 RMB/ton on March 1st, and 5,178 RMB/ton on March 28th. The monthly decline was 1.61%, a 1.52% decrease compared to the same period last year.
Analysis review
The domestic propane market fluctuated and declined in March. At the beginning of the month, crude oil prices rose, which boosted the market atmosphere and slightly pushed up propane prices. Subsequently, the market was negatively affected by weak demand, and prices began to decline. The weather had warmed up, the demand for combustion had weakened, and the market atmosphere was weak. Prices had continued to decline until mid March. In late March, influenced by the strengthening of crude oil and the rise of external prices, prices experienced a rebound, but the overall rebound was limited by weak demand.
Saudi Aramco announced its CP in March, with propane at 630 US dollars per ton; Butane costed 640 US dollars per ton, while the contract price for propane and butane remains unchanged month on month. The landed cost in RMB was around 5,160 RMB per ton for propane and 5,279 RMB per ton for butane.
Market outlook
Overall, as entering April, the expected increase in demand is limited, and downstream buyers are buying on dips. Business owners have a weak attitude towards the future market, and the CP is about to be introduced in April. closely monitor the external market trends and it is expected the propane market will be weaker in the short term.
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