In October, the propane market rose unabated and welcomed the good start. After returning from the 11th small holiday, Shandong propane market continued its rise in September, continued to be the main player, with a particularly prominent increase, broke through the high level of 6000 yuan / ton, and quickly rose to the highest level in the year. According to the monitoring data of business agency, the average price of propane in Shandong market was 4983.25 yuan / ton on September 30 and 6125.75 yuan / ton on October 8. The increase rate in early October was 6.24%, an increase of 22.93% compared with September 1.

As of October 8, the mainstream prices of propane in different regions in China are as follows:

region Specifications October 8th

East China Propane,% (V / V) not less than 95 5900-6100 yuan / ton

North China Propane,% (V / V) not less than 95 6030-6180 yuan / ton

Shandong region Propane,% (V / V) not less than 95 6043-6230 yuan / ton

South China Propane,% (V / V) not less than 95 6100-6150 yuan / ton

Since the beginning of October, the domestic propane Market as a whole has been the main player. Both the north and South markets have actively increased, and the increase in Shandong market is prominent. The factory quotation has been continuously increased during the National Day holiday, and on the first day after the festival. The price of propane in Shandong has risen above 6000 yuan / ton. At present, the average market price of propane in Shandong has reached the highest point of 6125.75 yuan / ton in the year.

The main factors supporting the continuous increase of propane price include the following points. First, the increase of import cost. At the end of September, Saudi Aramco introduced CP price in October, and propylene butane soared, which brought obvious benefits to the domestic market. Secondly, international crude oil pushed up, and the news was good for the market mentality. In addition, the off-season has passed, the weather has turned cool, and the terminal demand has increased compared with the previous period. In addition, with the arrival of the 11th small holiday, there is a demand for replenishment in the downstream before and after the festival, so there is a good enthusiasm to enter the market. At present, the inventory of Shandong manufacturers is mostly at a controllable level, with smooth shipment and strong mentality. Prices are still rising on the first day after the festival.

Saudi Aramco announced in October 2021 that both propylene and butane increased. Propane was 800 USD / T, an increase of 135 USD / T compared with the previous month; Butane is 795 USD / T, an increase of 130 USD / T compared with the previous month.

The peak season of propane market has come, and there is an expectation of improvement in terminal demand. In addition, the sharp rise in import costs and the high level of international crude oil have brought obvious benefits to the domestic market. At present, the overall transaction atmosphere of the market is mild, there is still replenishment demand in the downstream after the festival, and the manufacturer’s inventory is mostly at the low level, and the overall shipment is smooth. It is expected that the price of propane market will continue to rise in the short term.