This week, domestic Shandong propane continued to rise, exceeding 5000 yuan/ton. According to the Commodity Market Analysis System of the Business Society, the average price of propane in Shandong on August 7th was 4818 yuan/ton, and on August 11th it was 5363 yuan/ton. The weekly increase was 11.31%, a decrease of 4.37% compared to the same period last year.

As of August 11th, the mainstream prices of propane in different regions in China are as follows:

Region/ August 11th

East China region/ 3850-4000 yuan/ton

North China region/ 4000-4150 yuan/ton

Shandong region/ 4050-4150 yuan/ton

Northeast region/ 3850-3950 yuan/ton

This week (8.7-8.11), the Shandong propane market rose strongly, with multiple broad increases of 150-200 yuan/ton. Due to the limited supply of goods in northern ports and the maintenance of some enterprise installations, the supply in the region has tightened. The Shandong market has led the rise, while downstream buyers have entered the market. Upstream shipments are smooth, inventory remains low, and low supply and high demand support the continuous rise in propane prices.

Saudi Aramco’s CP was introduced in August 2023, with propane at $470 per ton, an increase of $70 per ton compared to the previous month; Butane is $460 per ton, an increase of $85 per ton compared to the previous month.

Overall, the current propane price has risen to a high level, and downstream resistance to high priced sources has increased. With downstream restocking approaching its end in the future, it is expected that the propane market will rise from a low level and stabilize from a high level.