The propane market fluctuated and rose in November

The domestic propane market fluctuated and rose in November. According to data monitoring by Business Society, the average price of propane in Shandong’s market was 5490 yuan/ton on November 1st, and 5688 yuan/ton on November 28th, with a monthly increase of 3.6%, an increase of 0.28% compared to the same period last year.


As of November 28th, the mainstream prices of propane in different regions of China are as follows:

Region/ November 28th

East China region/ 5400-5550 yuan/ton

North China region/ 5600-5750 yuan/ton

Shandong region/ 5550-5650 yuan/ton

Northeast region/ 5500-5700 yuan/ton

In November, the domestic propane market first rose and then fell, with an overall increase. In early November, the on-site inventory of Shandong propane market was low, and the sales were smooth. With a sudden drop in temperature, downstream markets actively entered the market, while upstream prices rose. With the rise of propane prices to a high level, downstream resistance is evident, and there is a rebound in the increase. Entering mid November, the northern region experienced a surge in civilian demand due to the winter season, which steadily increased and supported the propane market. At the same time, chemical demand remains at a normal level, market supply and demand remain at a good level, downstream actively enters the market, and market prices remain stable. In late November, propane prices began to slightly decline, with downstream investors seeking dips and upstream investors adjusting flexibly, with a slight downward adjustment being the main focus.


Saudi Aramco announced its CP in November 2023, with propane at $610 per ton, an increase of $10 per ton compared to the previous month; Butane costs $620 per ton, an increase of $5 per ton compared to the previous month.


Overall, with the upcoming release of the CP in December, there will be a concentration of imported propane arriving at the port in the future. Due to weak demand and weak price increases, we will closely monitor the dynamics of the external market. It is expected that the propane market will experience a narrow consolidation and operation in the short term.