At the Beginning of the Month, the Propane Market was Low and then High, Fluctuating in a Narrow Range

At the beginning of June, the domestic propane market price mainly consolidated within a narrow range. According to the data monitoring of the business community, the average price of propane in Shandong was 6445.75 CNY/ton on June 1, and the average price on June 7 was 6468.25 CNY/ton, an increase of 0.35% during the period, an increase of 51.81% compared with the same period last year.

At the beginning of June, the domestic propane market was relatively strong, and the price was consolidating in a narrow range. The price of Shandong propane market fell before the Dragon Boat Festival, and the price rose after the festival. The overall center of gravity moved up, but the fluctuation range was limited. At the end of the month, with the introduction of the CP price in June, propane butane fell sharply, which brought a certain negative to the domestic market, and the propane market price was mainly weak. After the holiday, the high international crude oil prices brought obvious support to the market. In addition, the inventories of manufacturers were temporarily under control, their mentality was relatively strong, and prices rose slightly. However, due to the off-season factor, the terminal demand is limited, which brings obvious restraint to the market.

Saudi Aramco's June 2022 CP announced that both propane and butane fell. Propane was $750/ton, down $100/ton from the previous month; butane was $750/ton, down $110/ton from the previous month.

At present, the international crude oil price is high, and the cost aspect has brought obvious support to the propane market. The supply side of the Shandong market is not under pressure, but the demand side is weak, the enthusiasm for entering the market in the downstream is limited, and the market trading atmosphere is weak. It is expected that the propane market price will continue to trade sideways in the short term.