In July, the overall center of gravity of propane Market shifted upward, and the atmosphere of market transaction was positive, which made propane in the off-season break the situation of following the rules. The average price of propane (Shandong) market on July 1 was 2927.50 yuan / ton, and that on July 31 was 3350.00 yuan / ton, with an increase of 14.43% in the month and a decrease of 7.01% over the same period of last year.
| PVA 1799 (PVA BF17) |
Regional standard enterprises rose and fell from July 1 to July 31
Shandong propane,% (V / V) not less than: 95 HSBC Petrochemical 2980 yuan / ton 3350 yuan / ton + 370
Shandong propane,% (V / V) not less than: 95 Hualian Petrochemical 2880 yuan / ton 3250 yuan / ton + 370
Shandong propane,% (V / V) not less than: 95 Hengyuan Petrochemical 3000 yuan / ton 3500 yuan / ton + 500 yuan
Shandong propane,% (V / V) not less than: 95 Haiyou Petrochemical Company: 2850 yuan / ton, 3355 yuan / ton + 505
Shandong propane,% (V / V) not less than: 95 Binzhou Dayou 2880 yuan / ton 3250 yuan / ton + 370
At the beginning of July, the growth of propane market was not prominent. Due to the weak downward trend of LPG civil market, which affected the market mentality, propane continued the off-season market, and the price mainly fell in a narrow range, but the market downturn was only a few days. As the port has been in the state of profit inversion for a long time, and the domestic propane price is low, pushed up by the port, the market ushered in a rebound on July 6.
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In mid July, propane market rose strongly and continued to push up. The rebound of international oil price and the strong rise of LPG civil price have significantly boosted the market, and the strong rise of air intake cost has supported the upward trend of port price. The port inventory is low, and the price has continued to rise under multiple favorable conditions. During this period, the domestic propane refinery output decreased. Under the support of low supply, the downstream market entry was positive, the market turnover atmosphere improved significantly, and the manufacturers’ mentality was strong, and the increase was more obvious.
In late July, the propane market was mainly in a narrow range. Due to the rapid growth rate of propane in the middle of the month, due to the wide decline of import cost in the later stage, the increase of supply caused by partial concentration to ships, and the terminal demand to be improved, the price dropped slightly at first. However, after the introduction of CP in August, the propylene butane increased by 5 US dollars / ton, which obviously supported the market. Under the support of high import cost, it stopped falling and rebounded. During this period, propane production decreased and market supply decreased. In terms of demand, the downstream purchase is more on demand, but the upstream inventory is in the middle level, the market production and sales are stable, and the price is stable and upward.
In terms of international market, Saudi Aramco announced CP in August 2020, with propane 365 USD / T, up 5 USD / T compared with last month; butane 345 USD / T, up 5 USD / T compared with last month.
Under the hot weather in July, it was the traditional off-season demand for propane Market, but it did not have the same downturn as in previous years. The overall temperature of this year is lower than that of previous years, which is beneficial to the rise of propane. The slight rise in international oil prices this month has boosted the market to some extent. In terms of demand, downstream buyers are more active in entering the market, and the overall market shipment is better. The import of propane was significantly reduced, the port inventory was at a low level, and the overall shipment of domestic refineries was smooth. In the future, CP rose slightly in August, but its support to the market is limited. The traditional off-season has not passed, the weather is hot, and the terminal demand still needs to be improved. It is expected that the price rise will continue in August, but the range may be narrowed.
| PVA 1788 (PVA BP17) |