At the Beginning of the Month, the Propane Market Fell First and Then Rose

　　At the beginning of June, the domestic market price mainly consolidated in a narrow range. The price of propane in Shandong market fell first and then rose, with the increase outweighing the decrease. According to the data monitoring of SunSirs, the average price of propane in Shandong was 6,445.75 RMB/ton on June 1, and the average price on June 7 was 6,468.25 RMB/ton, an increase of 0.35% during the period, an increase of 51.81% compared with the same period last year.

　　Analysis review

　　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. With the introduction of CP prices in June, both propane and butane fell sharply, which brought a certain negative to the domestic market, and the market price of propane 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, and their mentality was relatively strong, and prices rose slightly. However, due to the off-season factor, the terminal demand was limited, which brought obvious restraint to the market.

　　Saudi Aramco’s June 2022 CP announced that both propane and butane fell. The price of propane was750 US dollars/ton, a decrease of 100 US dollars/ton n from the previous month; the price of butane was 750 US dollars/ton, a decrease of 110 US dollars/ton from the previous month.

　　Market outlook

　　At present, the international crude oil price is high, and the cost 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.