Inventory is Temporarily Controllable, and the Propane Market Rebounds Slightly at the Beginning of the Month

In early July, the domestic propane market rose steadily, and the Shandong market rebounded slightly. According to data monitoring, the average price of Shandong propane market was 6025.75 CNY/ton on July 1, and the average price on July 6 was 6050.75 CNY/ton, an increase of 0.41% during the period, an increase of 25.06% compared with the same period last year.

At the beginning of the month, the domestic propane market was generally stable, and the Shandong propane market rose in a narrow range. With the introduction of CP prices in July, although propane butane fell, the decline was smaller than expected, bringing relative support to the domestic market. In addition, the international crude oil market price pushed up, and the cost aspect was favorable for the market sentiment. The downstream entry into the market was warm and mild, and the market trading atmosphere was acceptable. At present, the upstream inventory in the Shandong market is mostly in a controllable state, and most manufacturers are mainly at high prices.

Saudi Aramco's July 2022 CP announced that both propane and butane fell. Propane was $725/ton, down $25/ton from the previous month; butane was $725/ton, down $25/ton from the previous month.

At present, the market price of propane in Shandong is mostly around 6,000 CNY/ton, the upstream inventory is temporarily unpressurized, and the atmosphere of downstream entry into the market has improved slightly. However, as the international crude oil fell sharply, the news was negative on the market, which brought obvious restraint to the rebound. In addition, there was no improvement in terminal demand. It is expected that the price of the propane market may weaken in the short term.