SunSirs: In December, the Propane Market First Fell and Then Rose, the Market Price Shifted Downward

2021-12-30by admin

Price trend

In December, the center of propane market price still moved downward, and the overall trend was first decline and then rise. According to the data monitoring of SunSirs, the average market price of propane in Shandong on December 1 was 5,770.75 RMB/ton, and the average price on December 28 was 5,435.75 RMB/ton, a decrease 5.81% in the month of, and down 16.51% compared to November 1.

Analysis review

In December, the domestic propane market continued its downward trend, with the center of gravity still moving downward, and both the northern and southern markets were weak. Although the international crude oil mainly fluctuated upward in December, it brought limited benefits to the propane market. The introduction of CP prices in December brought significant negative effects to the domestic market. The Shandong market had relatively sufficient supply, and the weather in the first half of the month was not obvious, terminal demand was limited, downstream enthusiasm for entering the market was not high, manufacturers’ shipments were in general, and successively cut prices to sell mainly. Until the end of the month, the successive upward adjustments of international crude oil brought certain support to the market, and after the winter solstice, terminal demand increased significantly. The downstream enthusiasm for entering the market had improved compared with the previous period, the mentality of manufacturers had been firm, and prices had rebounded.

Saudi Aramco announced in December 2021 that both propane and butane fell. Propane was 790 US dollars/ton, down by 80 US dollars/ton from the previous month; butane was 770 US dollars/ton, down by 60 US dollars/ton from the previous month.

Market outlook

At present, international crude oil is rising, and the news is positive for the market mentality, and the northern and southern markets have followed up to varying degrees. Terminal demand has increased, the downstream market is actively entering the market, and the market trading atmosphere has improved compared with the previous period. However, near the end of the month, the January CP is about to be released, and it is expected that there will still be a decline, which will bring a certain degree of restraint to the market. The propane market is expected to rise first and then fall in January.