In 2021, the propane market continued the rising trend at the end of 2020. In January, the overall trend was first up and then down, with a large range of rise and fall within the month, showing a “roller coaster” market. According to the data monitoring of business news agency, the average market price of propane was 4157.50 yuan / ton on January 1 and 4020.00 yuan / ton on January 31, with a decrease of 3.31% in January and an increase of 4.76% compared with December 1.

As of January 29, the mainstream propane prices in different regions in China are as follows:

Regional specifications January 29

Propane in East China,% (V / V) not less than: 95 4200-4450 yuan / ton

In North China,% (V / V) is not less than 95.4000-4120 yuan / ton

In Shandong Province,% (V / V) propane is not less than 95 3900-4050 yuan / ton

In South China,% (V / V) is not less than: 95 4270-4450 yuan / ton

Propane in Central China,% (V / V) not less than: 95 4230-4606 yuan / ton

It can be seen from the trend chart that in the first half of January, the propane Market frequently increased the ex factory price, with a large range, and the price went up continuously to 5500 yuan / ton. First of all, in the first half of the month, the market price began to rise sharply during the new year’s Day holiday, which supported the continuous increase of the ex factory price of propane Market. Firstly, the CP price of Saudi Aramco was introduced in January, resulting in the sharp rise of propane butane, which brought obvious benefits to the market. Secondly, in the first half of the month, the international crude oil market was the main market, and the news was favorable to the market mentality. Downstream mentality is good, entering the market is more positive, manufacturers shipping smoothly, strong mentality. Among them, the northern market rose significantly, with an increase of 450-700 yuan / ton during the holidays. After the holiday, the market remained positive and continued to rise until the middle of the month.

But “a big rise will be accompanied by a big fall”. Sure enough, in the second half of the month, the market trend is in sharp contrast to the first half, and prices are mainly falling continuously. In the second half of the month, the decline of international crude oil was bad for the market mentality, and some low-cost ports brought a certain impact on the market. In addition, affected by the public health events in the north, the traffic was blocked, and the market demand became weak. In the first half of the month, the price rose too fast, the downstream resistance increased, the mentality was cautious, and the enthusiasm to enter the market was not high. Manufacturers shipping blocked, inventory gradually accumulated, frequent price reduction, profit based shipping. By the end of the month, the price had fallen back to about 4000 yuan / ton.

In terms of international market, Saudi Aramco announced in February that there was an increase in propane and butane. Propane was 605 US dollars / ton, up 55 US dollars / ton compared with last month; butane was 585 US dollars / ton, up 55 US dollars / ton compared with last month.

At the end of the month, the market price in Shandong mostly recovered to be stable. At present, the CP rise in February has brought some support to the market. However, the trend of international crude oil is not clear, which brings limited benefits to the market. With the Spring Festival approaching, manufacturers’ demand for storage and inventory may weaken before the festival, and the terminal market demand may weaken after the festival. It is expected that the market rise and fall in February will be limited, and the overall market may rise first and then fall.