The trend of domestic propane market is weak this week, and the center of gravity of Shandong propane market has moved downward. According to the data monitoring of the business community, the average price of Shandong propane market was 5955.75 yuan/ton on September 8 and 5915.75 yuan/ton on September 15, with a drop of 0.67% within the week, up 7.99% compared with the same period last year.

As of September 15, the mainstream prices of propane in different regions in China are as follows:

Region, September 15

In Central China, 6150-6400 yuan/ton

North China, 5900-6100 yuan/ton

Shandong, 5850-6000 yuan/ton

Northeast China, 5700-6000 yuan/ton

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, international crude oil has been subject to recent shocks, with limited support in terms of cost. Although entering September, the recent temperature drop is not obvious, the demand for combustion market is limited, and the enthusiasm for downstream market entry is not high. Duowei will make up as needed and mainly wait and see. The upstream inventory pressure is not large, and most of them are fixed prices.

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

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. Multidimensional support is available on demand, and 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.