The domestic propane market continued to rise in May. According to the Commodity Analysis System of Business Society, the average price of propane in Shandong’s market was 5178 yuan/ton on May 1st, and 5565 yuan/ton on May 28th, with a monthly increase of 7.46%, an increase of 22.3% compared to the same period last year.
As of May 28th, the mainstream prices of propane in different regions of China are as follows:
Region/ May 28th
East China region/ 5100-5150 yuan/ton
North China region/ 5350-5550 yuan/ton
Shandong region/ 5550-5750 yuan/ton
Northeast region/. 5470-5500 yuan/ton
There is a significant difference in the propane market between the north and south in May. Taking Shandong as an example, after the May Day holiday, downstream restocking was concentrated, and upstream inventory decreased to a low level. At the same time, downstream PDH units began to operate one after another, with a significant increase in demand, driving up propane prices. Along with price increases, the transaction atmosphere weakened, and shipments were not smooth, resulting in a decline in propane prices in the middle of the month. In late May, PDH production remained at a high level, and with the boost of demand and crude oil, propane prices continued to rise, reaching a high level.
Saudi Aramco announced its CP in May 2024, with propane at $580 per ton, a decrease of $35 per ton compared to the previous month; Butane is $585 per ton, a decrease of $35 per ton from the previous month. Equivalent cost in onshore US dollars: $615/ton for propane and $625/ton for butane.
Overall, with the upcoming release of CP in June, the enthusiasm for downstream entry into the market has weakened, and the wait-and-see atmosphere has become stronger. However, with low upstream inventory and stable demand, it is expected that the propane market will operate at a high level in the short term.
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