The off-season August has passed, and the propane Market in the traditional sales peak season has come, but it has not been able to go up as expected. Propane entered the market in September, showing a continuous downward trend. According to the data monitoring of business agency, the average market price of propane was 3457.00 yuan / ton on September 3 and 3350.00 yuan / ton on September 10, with a decrease of 3.11% during the period, which was the same as that on August 1.

Jinjiu has entered the traditional sales peak season. As the weather gradually turns cold, the industry has greater expectations of market demand. However, at present, Jinjiu has passed one third. Propane market performance is too pessimistic, and it does not show an upward trend. Instead, it falls again and again. At present, there are many negative factors in the market, which bring too much pressure to propane upward.

On the news surface, the falling cost of imported gas and the severe decline of international crude oil are one of the main reasons for the decline of propane. Due to the impact of the weakening demand caused by the epidemic situation, WTI fell by nearly 8%, and Brent crude oil fell below $40 / barrel for the first time since June. Secondly, although CP rose in September, the increase did not meet the expectation, which provided limited support to the market. Then there is demand. Due to the slow improvement of terminal demand, there is no obvious change in the current market. The overall downward trend of the civil LPG market has brought about obvious constraints on the market. At present, although the overall output of domestic refineries has been reduced, the market supply is still sufficient. At present, there are many negative factors, the downstream mentality is cautious, more on-demand replenishment, the enthusiasm for entering the market is not high. Manufacturers blocked shipment, inventory gradually accumulated, continue to reduce prices, profit delivery.

Regional specification September 10

Propane in East China,% (V / V) not less than: 952850-3300 yuan / ton

Propane in North China,% (V / V) not less than: 953300-3460 yuan / ton

Propane in Shandong area,% (V / V) not less than: 953200-3400 yuan / ton

Propane in South China,% (V / V) not less than: 952880-2980 yuan / ton

Propane in Central China,% (V / V) not less than: 953050-3400 yuan / ton

Propane in Northeast China,% (V / V) not less than: 95 3280-3800 yuan / ton

At present, there are some differences in the domestic propane market trend among different regions, only a small part of the region remains stable, and most other regions are weak in reducing the price.

International crude oil: on September 8, the U.S. WTI crude oil futures market price plummeted, and the settlement price of the main contract was $36.76/barrel, down $3.01. Brent crude oil futures market prices fell sharply, the main contract settlement price to 39.78 US dollars / barrel, down 2.23 US dollars. WTI fell nearly 8%, and Brent crude oil fell below $40 / barrel for the first time since June due to concerns that demand may be restrained due to the aggravation of the global epidemic, and the resonance impact of sharp falls in US technology stocks and energy stocks.

In terms of the international market, Saudi Aramco announced CP in September 2020, with propane at $365 / T, stable compared with the previous month; butane at $355 / T, up $10 / T from last month.

At present, the continuous downward trend of international crude oil has a significant drag on the market, and the civil LPG market is mainly weak. The domestic refineries supply is stable and the port supply is sufficient. Although Jinjiu has arrived, the terminal demand has not been significantly improved, the demand has not been followed up, and the downstream wait-and-see mood is strong and the mentality is more cautious. At present, the CP price is expected to fall in October, and there are many negative factors, all of which have brought constraints on the upward road of the market. It is expected that the propane market may still fall in the short term. In the long run, terminal demand is still the main problem.