In March, the domestic propane market continued its downward trend and stabilized at the end of the month. According to data monitoring by SunSirs, the average market price of propane in Shandong was 6,107 RMB/ton on March 1, and 5,173 RMB/ton on March 27. The monthly decline was 15.3%, and down 25.71% compared to the same period last year.
Analysis review
In March, the decline in the domestic propane market increased, and the market had a strong bearish mentality. At the beginning of the month, the market continued its weak trend at the end of February. Downstream procurement enthusiasm was not high, market prices followed the market, and upstream mainly destocked. As the price of crude oil fell to a low level, international external market prices continued to decline, and downstream demand continued to decline. As a result, upstream shipments were not smooth, and prices were significantly lowered several times. In late March, as propane prices fell to a low level and downstream bargains entered the market, trading volume increased, some markets experienced a slight increase and market atmosphere rebounded.
Saudi Aramco introduced CP in March 2023, with propane at 720 US dollars per ton, a decrease of 70 US dollars per ton compared to the previous month; Butane was 740 US dollars/ton, down 50 US dollars/ton from last month.
Market outlook
Overall, the propane market price is still higher than the external market price, so the momentum for propane to continue to rebound is limited. It is expected that in the short term, the propane market will mainly consolidate and operate after entering April.
