Price Trend

This week the propane market continued to rise. At the beginning of the week, the average propane market price was 3602.5 yuan/ton, and at the end of the week, it was 3702.5 yuan/ton. Within the week, it rose by 2.78%, and the price fell by 22.8% compared with the same period last year.

II. Analysis of Influencing Factors

Products: This week the domestic propane market continued to rise, the market turnover atmosphere is good. As of August 16, propane self-use in Dongming Petrochemical Company of Shandong Province was stopped. Propane ex-factory price of Tianjin Bohai Chemical Group Supply and Marketing Company is 3800 yuan/ton, Shandong Haiyou Petrochemical Group is 3680 yuan/ton, Shandong Dongying Hualian Petrochemical Company is 3600 yuan/ton, Shandong Huifeng Petrochemical Company is 3730 yuan/ton, Shandong Hengyuan Petrochemical Company is propane ex-factory price. The factory price is 3800 yuan/ton, and the factory price of propane of Binzhou Dayou Group is 3700 yuan/ton. Propane ex-factory price of Shandong Zhonghai Fine Chemical Co., Ltd. is 3600 yuan/ton, and that of Sinopec Qingdao Refinery and Chemical Co., Ltd. is 3550 yuan/ton.

Industry chain: The domestic liquefied petroleum gas (Shandong) market fell first and then rose this week. At the beginning of the week, the average price of the domestic liquefied petroleum gas market was 3783.33 yuan/ton, and the average price of the weekend was 3776.67 yuan/ton. Within the week, the price fell by 0.18%, 12.58% compared with the same period last year. Domestic propylene (Shandong) rose first and then stabilized this week. At the beginning of the week, the average price of domestic propylene market was 7607 yuan/ton, and at the end of the week, it was 7738 yuan/ton. Within the week, the price increased by 1.71%, which was 20.55% lower than that of the same period last year. Saudi Amy Corp. announced in August that the price of propane was narrowly lowered and the price of butane was narrowly increased. Propane was 370 US dollars/ton, down 5 US dollars/ton from last month; butane was 360 US dollars/ton, up 5 US dollars/ton from last month. The cost of long cargo propane is about 3056 yuan per ton on shore and 2980 yuan per ton on butane. This week, international crude oil prices rose first and then fell, which supported the propane Market to a certain extent. In addition, affected by typhoon weather, transportation capacity declined. Shandong, Jiangsu, Zhejiang and other places had pre-stocks, manufacturers shipped better, and inventory pressure was not high. However, the current weather is still in hot summer, downstream demand is difficult to improve significantly, in the short term, it still affects the enthusiasm of downstream market entry.

Industry: According to the price monitoring of business associations, there are 29 commodities rising annually in the chemical sector in the 32-week (8.12-8.16) rise-fall list of commodity prices in 2019, of which 3 commodities with an increase of more than 5% accounted for 3.6% of the monitored commodities in the plate; the first three commodities with a rise were hydrochloric acid (22.22%), dichloromethane (11.48%) and trichloromethane (5.8%). 8%). There were 24 kinds of products with a decline of more than 5%, accounting for 3.6% of the monitored products in this sector. The products with the first three declines were epichlorohydrin (-10.65%), phosphoric acid (-9.14%) and yellow phosphorus (-8.24%). This week’s average rise and fall was 0.33%.

3. Future Market Forecast

Propane analysts believe that although international crude oil has some support for the propane market, it has not formed a sustained positive, manufacturers continue to push up prices, the market mentality is obvious. The expected weakening of oil prices next week will have an impact on the market mentality. It is expected to fall slightly next week.