The domestic propane market stops falling and picks up

Returning from the 11th short holiday, the propane market finally stopped falling and picked up, ushering in a wave of gains. According to data monitoring, the average market price of propane on October 1st was 3,27.50 CNY/ton, and the average price on October 12th was 3,525.00 CNY/ton. The post-holiday increase was 7.55%, an increase of 1.95% compared to September 1.

Although September ushered in the traditional peak sales season, the Propane market fell frequently, and the peak season was not busy. The most important point is the demand side. Entering September, terminal demand has increased slowly. Although the weather has cooled down, overall demand has not increased significantly. The market is still in a weak state. The downstream market is generally enthusiastic and cautious. Sexual replenishment operations. In addition, the trend of international crude oil fluctuated and declined, and the news was negative for the market mentality. In addition, the concentration of ports to ships in the future will bring significant pressure on the market. Manufacturers' shipments were sluggish, and continuous profit sharing stimulated downstream entry into the market.

After the holiday, propane rose significantly and the market transaction atmosphere was positive. CP was released in October. Propane and butane have risen to varying degrees. In addition, international crude oil has risen significantly on the first day after the holiday, and the cost of imported gas is high. There are many favorable factors that promote propane upward. In October, the weather temperature dropped significantly, and terminal demand increased. The downstream has a strong bullish attitude towards the market outlook, actively entering the market, and a good market transaction atmosphere. The mentality of refineries is firm, and ex-factory prices are continuously raised, and inventories are mostly at low levels.

As of October 12, the mainstream domestic propane prices by region are as follows:

In the international market, Saudi Aramco launched CP in October 2020. Propane is US$375/ton, an increase of US$10/ton from the previous month; butane is US$380/ton, an increase of US$25/ton from the previous month.

On the demand side, as the weather gradually cools down, terminal demand is expected to increase. And supported by the high port, the industry has a better attitude and is more active in entering the market. Manufacturers shipped smoothly, and their inventories were mostly maintained at low levels, and their mentality was firm. It is expected that the Propane market may still rise in the short term.