I. price trend

Propane Market stabilized first and then rose this week. The average market price of propane at the beginning of the week was 4062.5 yuan / ton, and that at the end of the week was 4142.5 yuan / ton, up 1.97% in the week, 10.67% lower than the same period last year.

II. Analysis of influencing factors

Product: the domestic propane Market Transaction atmosphere this week is fair. As of December 6, Shandong Dongming Petrochemical Co., Ltd. stopped using propane for its own use, and Shandong Haiyou Petrochemical Group Co., Ltd. had no propane in stock, so the price was not offered temporarily. The ex factory price of propane of Tianjin Bohai Chemical Group supply and marketing company is 4060 yuan / ton, that of Shandong Dongying Hualian Petrochemical Co., Ltd. is 4170 yuan / ton, that of Shandong HSBC Petrochemical Co., Ltd. is 4250 yuan / ton, that of Shandong Hengyuan Petrochemical Co., Ltd. is 4300 yuan / ton, and that of Shandong Binzhou Dayou group is 4250 yuan / ton. The ex factory price of propane of Shandong Zhonghai Fine Chemical Co., Ltd. is 4250 yuan / ton, and that of Sinopec Qingdao Refining Chemical Co., Ltd. is 4150 yuan / ton.

Propane is on the whole up this week. In December of the beginning of the week, CP prices rose slightly, which boosted the market. However, international crude oil is on a downward trend, with a negative attitude. The downstream is more cautious and wait-and-see. The manufacturer’s shipping is generally but not willing to decline. It is mostly adjusted slightly according to its own situation, and the overall stability of Shandong region is mainly. On Thursday, the international crude oil rebounded sharply. In addition, the gas intake rose slightly, increasing downstream confidence. The enthusiasm for entering the market rose. The shipment situation of manufacturers improved significantly. Shandong province raised the price by about 70-100 yuan / ton.

Saudi Aramco’s December CP announced a slight increase in propylene butane. Propane rose to $440 / T, up $10 / T from last month; butane $455 / T, up $10 / T from last month.

Industry: according to the price monitoring of the business agency, in the 48th week of 2019 (12.2-12.6), there are 17 kinds of commodities in the list of commodity prices rising and falling, including 1 kind of commodity with an increase of more than 5%, accounting for 1.2% of the number of commodities monitored in the chemical sector; the top three commodities are R22 (5.77%), liquid ammonia (3.72%) and organosilicon DMC (3.17%). There are 26 kinds of commodities with a decline in the month on month ratio, and the top three products were propylene (- 3.85%), isopropanol (- 3.63%) and polysilicon (- 3.34%). This week’s average was – 0.26%.

III. future forecast

According to propane analysts of the business agency, CP prices rose slightly in December, crude oil went up, and LPG market went up, which all played a positive role in the market. Manufacturers’ mentality of improving shipment is relatively strong, and it is expected that there is still room for growth next week.