After returning from the 11 small holiday, propane market finally stopped falling and recovered and ushered in a wave of rise. According to the data monitoring of business agency, the average price of propane market was 3277.50 yuan / ton on October 1, and 3525.00 yuan / ton on October 12, with an increase rate of 7.55% after the festival and 1.95% higher than that on September 1.

Although September ushered in the traditional sales peak season, the propane market fell frequently, showing a weak market in the peak season. The most important point is the demand. In September, the terminal demand increased slowly. Although the weather has cooled down, the overall demand has not improved significantly. The market is still in a weak state. The downstream market entry enthusiasm is general, the mentality is cautious, and the multi-dimensional periodic replenishment operation is maintained. Moreover, the international crude oil trend fluctuated and fell, the news was negative for the market mentality, and the later port concentration on ships brought obvious pressure on the market. The situation of manufacturers’ shipment is weak, and the continuous profit sharing stimulates the downstream market entry.

After the festival, propane rose significantly, and the atmosphere of market transaction was positive. With the introduction of CP in October, propane and butane increased to varying degrees. In addition, the international crude oil rose significantly on the first day after the festival, the cost of imported gas was high, and there were many favorable factors, which promoted the upward trend of propane. In October, the weather temperature dropped significantly, and the terminal demand increased. The lower reaches have a strong bullish attitude towards the future market, and have a positive market entry atmosphere. Refinery mentality is firm, continuously increase factory prices, inventory is mostly in low level.

As of October 12, the mainstream prices of propane in different regions in China are as follows:

Regional specification October 12

Propane in East China,% (V / V) not less than: 953300-3450 yuan / ton

Propane in North China,% (V / V) not less than: 95 3490-3650 yuan / ton

Propane in Shandong area,% (V / V) not less than: 95 3450-3550 yuan / ton

Propane in South China,% (V / V) not less than: 953370-3450 yuan / ton

Propane in Central China,% (V / V) not less than: 95 3700-3800 yuan / ton

Propane in Northeast China,% (V / V) not less than: 953600-3800 yuan / ton

In terms of international market, Saudi Aramco released CP in October 2020, with propane at 375 USD / T, up by 10 USD / T compared with last month, and butane at 380 USD / T, up by 25 USD / T compared with last month.

In terms of demand, with the gradual cooling of the weather, the terminal demand is expected to improve. And under the support of high-level port, the attitude of the operators is better, and they are more active in the market. Manufacturers to ship smoothly, inventory to maintain a low level, a strong mentality. The propane market is expected to rise in the short term.