China Propane Prices to Inch Up

Recently, the international crude oil prices recovered to some extent, giving support to the market sentiment. At present, China’s propane prices hover at highs, but the further increase in the propane prices will be limited.

According to sources, propane and butane CP August increased. Therein, propane CP August was $580/mt, up $25/mt M-O-M, and butane CP August was $595/mt, up $25/mt M-O-M. Moreover, the duty-paid cost of propane was RMB 4,586/mt, and that of butane was RMB 4,670/mt. The increased CP propane gave strong support to the market sentiment. In early August, the international crude oil prices declined to some extent, weighing down the growth of China’s propane prices. Therefore, SCI reckons that market participants need to pay close attention to the international crude oil price trends.

On the whole, as the international crude oil prices hover at highs and the propane supply is relatively low, SCI reckons that China’s propane prices will continue to go up in the short term, but the increase in the propane prices will be limited.