Propane market began to decline after the middle of May. Although it rebounded in recent days driven by the sharp rise of international crude oil, the market was blocked again on the 26th and returned to the decline. According to the data monitoring of business news agency, the average price of propane in Shandong was 4378.25 yuan / ton on May 16 and 4333.25 yuan / ton on May 26, with a decrease of 1.03% during the period and a rise of 51.38% compared with the same period last year.

As of May 26, domestic mainstream propane prices by region are as follows:

region Specifications May 26th

East China Propane,% (V / V) not less than: 95 4000-4150 yuan / ton

North China Propane,% (V / V) not less than: 95 4320-4400 yuan / ton

Shandong Province Propane,% (V / V) not less than: 95 4250-4300 yuan / ton

South China Propane,% (V / V) not less than: 95 4000-4050 yuan / ton

Central China Propane,% (V / V) not less than: 95 RMB 4250-4550 / T

It is obvious from the trend chart that the overall trend of Shandong propane market is weak in May, and the decline is more obvious after the middle of the year. But into this week, as the international crude oil rose sharply, to bring obvious support to the market. And because of the early low price to stimulate shipment, upstream inventory was released, most refineries actively pushed up, prices rebounded. The north and south of the market trend of a certain deviation, Shandong market up more obvious. Although the continuous upward trend of international crude oil has brought support to the market, the low price of Lianyungang in East China has brought restraint to the Shandong market. At present, most of the downstream companies are making up according to the demand, and the market transaction atmosphere is general. The propane Market in Shandong has insufficient power to continue to rise, and the price has dropped. The southern market was mainly stable as a whole. Due to the low price in South China, the market shipment situation improved and the price rebounded at a low level.

In the crude oil market, on May 26, international oil prices rose slightly. The settlement price of the main contract in the US WTI crude oil futures market was US $66.21/barrel, up US $0.14 or 0.2%. Brent crude oil futures market settlement price of the main contract at 68.87 U.S. dollars / barrel, or 0.22 U.S. dollars or 0.3%, on Wednesday, the U.S. Energy Information Agency (EIA) data bring good, crude oil inventory decline, combined with the arrival of North America driving season, market demand improvement is expected to strengthen, overshadowed the market’s worries about Iran’s crude oil back to the international market.

In the international market, Saudi Aramco’s CP announced in May that propane and butane all decreased. Propane was 495 US dollars / ton, down 65 US dollars / ton compared with last month; Butane is 475 US dollars / ton, down 55 US dollars / ton from last month.

At present, there are obvious differences in the market trends between the north and the south, with the low rebound in the South China market and the high decline in the Shandong market. Shandong propane price is around 4300 yuan / ton. Although the upward trend of international crude oil has brought obvious boost to the market, the weather continues to heat up, the downstream demand is still weak, and it is difficult for the domestic market to push up as a whole. It is expected that the propane market price will be strong in the short term, and it is still likely to weaken in the long term.