In April, the domestic propane market continued to decline, with a broad decline. According to data monitoring by Business Society, the average market price of propane in Shandong on April 1st was 5383 yuan/ton, and on April 26th it was 5088 yuan/ton. The monthly decline was 5.48%, a decrease of 21.43% compared to the same period last year.

As of April 27th, the mainstream prices of propane in different regions in China are as follows:

Region/ April 27th

South China region/ 5050-5100 yuan/ton

North China region/ 5050-5200 yuan/ton

Shandong region/ 5050-5100 yuan/ton

Northeast region/ 5050-5250 yuan/ton

In April, the propane market remained weak and demand dragged on, continuing to decline. In early April of this month, the CP introduced a sharp drop, resulting in lower import prices and considerable profits for port traders. Crude oil prices have skyrocketed, with limited news support, weak demand, and low demand for combustion. The demand side is constrained, and the propane market is weak and declining. In the middle of the month, the propane market experienced a rebound, with downstream bargains entering the market and periodic restocking, pushing propane up. However, as prices rose to high levels, downstream purchasing enthusiasm decreased, and propane prices stabilized. As the end of the month approaches the holiday, downstream inventory demand and propane prices begin to strengthen.

Saudi Aramco’s CP was introduced in April, and the contract prices for propane and butane were significantly reduced, with propane at $555 per ton, a decrease of $165 per ton compared to the previous month; Butane is $545 per ton, a decrease of $195 per ton compared to last month.

Overall, with the May Day holiday approaching and downstream pre holiday stocking operations, demand is expected to increase, and it is expected to enter the short-term market in May. The Shandong propane market is slightly upward, but overall demand is still weak and difficult to improve, with a long-term bearish outlook.