Huatai Futures Liquefied Petroleum Gas Daily Report
23 March 2023Huatai Futures Liquefied Petroleum Gas Daily Report 20230323: PDH Unit Load Expected to Rebound
On March 21st, the China East Coast spot price for propane and butane delivered in the second half of April 2023 was $546/ton. Converted to Chinese yuan, the propane and butane delivery costs were 4,133 yuan/ton.
On March 21st, the China South Coast spot price for propane and butane delivered in the second half of April 2023 was $554/ton. Converted to Chinese yuan, the propane and butane delivery costs were 4,194 yuan/ton.
According to the Saudi Press Agency (SPA) on Thursday, Saudi Foreign Minister Faisal and Iranian Foreign Minister Hossein Amirabdollahian agreed in a phone call to meet soon and prepare for the reopening of embassies between the two countries.
Market Analysis:
Recently, with the continuous decline of international propane prices, the profit of domestic PDH units has marginally improved. Some units that were previously under maintenance are expected to return soon, driving the load and raw material demand of the units to rebound and providing certain support to the market. However, overall, the fundamental outlook of LPG itself lacks sufficient upward momentum. While demand is expected to recover, the supply is also expected to increase as shipping volume from the Middle East gradually resumes and import windows open. As for macro concerns, while panic sentiment has eased in recent days, risks have not been completely eliminated, so it is still not advisable to be too optimistic about the rebound of the PG market.
One-sided neutral; temporarily observing.
Risk-None.