This week, propane in Shandong, China, shifted from a decline to an increase and continued to rise. According to the Commodity Market Analysis System of Business Society, the average market price of propane in Shandong was 5220 yuan/ton on August 21, and 5355 yuan/ton on August 25. The weekly increase was 2.59%, a decrease of 8.15% compared to the same period last year.

As of August 25th, the mainstream prices of propane in different regions in China are as follows:

Region/ August 11th

East China region/ 5000-5400 yuan/ton

North China region/ 5250-5350 yuan/ton

Shandong region/ 5350-5400 yuan/ton

Northeast region/ 5250-5300 yuan/ton

The Shandong propane market continued to rise this week (8.21-8.25). Based on the significant decline during the weekend last week, the mainstream price in Shandong this Friday was 5350-5400 yuan/ton, which is the same as last Friday’s price. Especially recently, the price of propane has increased significantly, and downstream caution has led to a significant drop in prices at the beginning of the week, with a range of 100-200 yuan/ton. Subsequently, the enthusiasm for downstream market entry increased, and the trading atmosphere improved. In addition, the market had a positive expectation for September, and on-site inventory remained low, while upstream actively pushed up.

Saudi Aramco’s CP was introduced in August 2023, with propane at $470 per ton, an increase of $70 per ton compared to the previous month; Butane is $460 per ton, an increase of $85 per ton compared to the previous month.

Overall, the inventory in the Shandong propane market remains at a relatively low level, and there is still room for improvement in the future. The CP will be introduced soon in September, and we will closely monitor the changes in the market production and sales situation.