The domestic propane market fluctuated and fell in January. According to data monitoring from Business Society, the average price of propane in Shandong’s market was 5588 yuan/ton on January 1st, and 5370 yuan/ton on January 26th. The monthly decline was 3.89%, a decrease of 12.49% compared to the same period last year.

As of January 26th, the mainstream prices of propane in different regions in China are as follows:

Region/ January 26th

East China region/ 5000-5250 yuan/ton

North China region/ 5200-5250 yuan/ton

Shandong region/ 5050-5250 yuan/ton

Northeast region/ 5000-5200 yuan/ton

The domestic propane market was weak and declined in January. At the beginning of the month, Saudi Arabia introduced a slight increase in CP in January, which slightly boosted the propane market and slightly boosted prices. Subsequently, due to sluggish downstream demand and active upstream buying, coupled with weak prices of crude oil and related liquefied gas, propane prices continued to decline under the pressure of bearish news. On site inventory is relatively high, with downstream buying on dips and upstream reducing prices to reduce inventory.

Saudi Aramco announced its CP in January 2024, with propane priced at $620 per ton, an increase of $10 per ton compared to the previous month; Butane costs $630 per ton, an increase of $10 per ton compared to the previous month.

Overall, there are signs of an upward trend in the propane market at the end of the month. As the Spring Festival approaches, the upstream is actively selling goods, while the downstream is not actively entering the market. The CP is about to be introduced in February, and we will closely monitor the external market trends. It is expected that the propane market will operate stronger in the short term.