Import cost is high, propane market price rises as a whole at the beginning of the month

Just entering June, the domestic propane Market as a whole rose, Shandong and central China rose steadily, and the price of South China rebounded due to the low price in the early stage. According to the data monitoring of business news agency, the average price of propane in Shandong was 4305.75 yuan / ton on June 1 and 4323.25 yuan / ton on June 3, with an increase of 0.41% during the period and 42.33% compared with the same period last year.

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Compared with the same period in 2020, propane price is on the high side this year. Just entering June, the overall price of propane in the domestic market has been increased under the favorable factors, but the negative factors still exist, which also brings some restraint to the market and limits the increase. The first reason for this upward trend is the international crude oil market, which was boosted by the international crude oil market at the beginning of this month, bringing good support to the propane Market. The second is the import volume. In June, the CP price was introduced, and there was a significant rise in the price of propane. The high import cost supported the upstream mentality, and the market transaction atmosphere was mild. Therefore, the propane market was stable and upward, South China rebounded, and Shandong and central China slightly promoted. However, there are still negative factors in the current market. Affected by seasonal factors, the market is in the traditional off-season demand, and the terminal demand is weak, which brings restraint to the rise of the market.

In the international crude oil market, on June 2, the international oil price rose significantly, with WTI up more than 1.6%. The settlement price of the main contract in the U.S. WTI crude oil futures market was $68.83/barrel, up $1.11 or 1.64%. Brent crude oil futures market settlement price of the main contract at 71.35 U.S. dollars / barrel, or 1.10 U.S. dollars or 1.57%. This is mainly due to the decision of the organization of Petroleum Exporting Countries and its allies (OPEC +) to adhere to the gradual resumption of supply plan. In addition, the progress of us Iran nuclear negotiations is slow, and the market supply pressure is expected to ease significantly.

Saudi Aramco CP announced in June that the level of propane and butane was increased. Propane was 530 US dollars / ton, up 35 US dollars / ton from last month; Butane is 525 US dollars / ton, up 50 US dollars / ton from last month.

At present, with the support of high international crude oil and gas intake, the domestic propane market is generally good. The upstream inventory in some regions is controllable, and the price is slightly pushed up. Most other regions have stable prices, and the market transaction atmosphere is mild. However, due to seasonal factors, the terminal demand is weak, which brings obvious constraints to the market. It is expected that the price of propane market will be strong in the short term, and it is unlikely to rise sharply in the later period.

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