This week, the decline in the domestic propane market increased, with a significant decline in the Shandong market. According to the Commodity Market Analysis System of the Business Society, the average price of propane in Shandong on May 8th was 4933 yuan/ton, and on May 21st it was 4680 yuan/ton. The weekly decline was 5.12%, a decrease of 27.77% compared to the same period last year.

As of May 12th, the mainstream prices of propane in different regions in China are as follows:

Region/ May 12th

East China region/ 4700-5200 yuan/ton

North China region/ 4650-4850 yuan/ton

Shandong region/ 4550-4600 yuan/ton

Northeast region/ 4800-5200 yuan/ton

This week (5.8-5.12), the atmosphere of the propane market further declined, with factories selling out and downstream demand not significantly improving. During the week, crude oil fell multiple times, suppressing market sentiment, while low port supply further impacted the high price propane market. Downstream demand is lower than expected, the market trading atmosphere is difficult to improve, on-site inventory is high, and factories are reducing prices and discharging inventory.

Saudi Aramco’s CP was introduced in May, and the contract price of propane remained unchanged compared to the previous month. Butane slightly increased, with propane at $555 per ton, which remained stable compared to the previous month; Butane is $555 per ton, an increase of $10 per ton compared to the previous month.

Overall, in the off-season of demand, there is an expectation of an increase in port supply, highlighting the pressure on the supply side. It is expected that the propane market will be weak and downward in the short term.