Crude Oil Continues To Rebound, And LPG Upward Drive Is Still Insufficient

Crude Oil Continues To Rebound, And LPG Upward Drive Is Still Insufficient

On 27th March, in the second half of April 2023, the CIF price of frozen goods in East China was US $559.00/ton for propane and US $549.00/ton for butane. The arrival cost of propane in RMB is 4229.00 yuan/ton, and the arrival cost of butane is 4153.00 yuan/ton.

On 27th March, in the second half of April 2023, the CIF price of frozen goods in South China was US $567.00 per ton for propane and US $557.00 per ton for butane. The arrival cost of propane in RMB is 4289.00 yuan/ton, and the arrival cost of butane is 4214.00 yuan/ton.

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Market analysis:

Against the background of easing overseas macro risk concerns and disrupting Kurdish crude oil exports, international oil prices have shown a continuous rebound, forming some support for the LPG market. Recently, the PG market has shown signs of stabilizing at a low level, but at present, it seems that the upward drive is still insufficient. Specifically, after the profits have been repaired, the operating rate of the PDH device has begun to slowly recover, and the parts of the device that were overhauled in the early stage are expected to return in a concentrated manner by the end of March and the beginning of April, driving up the demand for raw materials. However, in the context of the gradual recovery of shipments in the Middle East and the opening of the import window, China's LPG arrival volume is expected to significantly increase, and the supply side will remain relatively abundant. The market does not have a significant tightening expectation, so prices may be difficult to keep up with the increase in the crude end.