This week, the domestic Shandong propane market saw a rebound in growth and quickly declined. According to the Commodity Market Analysis System of the Business Society, the average price of propane in Shandong on July 3rd was 3963 yuan/ton, and on July 7th it was 3780 yuan/ton. The weekly decline was 1.6%, a decrease of 37.26% compared to the same period last year.

As of July 7th, the mainstream prices of propane in different regions in China are as follows:

Region/ July 7th

East China/ 3750-3800 yuan/ton

North China/ 3850-3950 yuan/ton

Shandong region/ 3700-3850 yuan/ton

Northeast region/ 3800-3850 yuan/ton

This week (7.3-7.7), the Shandong propane market continued to decline, with prices rapidly falling. Due to refineries raising prices one after another over the weekend, downstream consumers have a clear resistance towards high priced goods, resulting in a significant decrease in buying gas. In addition, the impact of imported low priced goods has increased inventory pressure on refineries. In order to stimulate sales, prices have rebounded this week.

Saudi Aramco’s CP was introduced in June 2023, with propane at $450 per ton, a decrease of $105 per ton compared to the previous month; Butane is $440 per ton, a decrease of $115 per ton compared to the previous month.

Overall, after the price correction, the enthusiasm for downstream replenishment has improved, and it is expected that the propane market will be slightly weaker in the short term.