According to the Commercial Analysis System of Business She, the domestic butane market continued its downward trend in December. As of December 29, the average price for butane was reported at 5112.50 yuan/ton (including tax), a decrease of 2.85% from the 5262.50 yuan/ton on December 1.
In terms of supply: In mid-to-late December, the butane market continued to decline, with prices falling in Wanhua's competitive bidding, resulting in poor transaction conditions and limited market support. The main factory prices for butane continued to follow the drop, and as downstream companies processed their previous raw material orders, new orders were signed in limited quantities. By late December, as butane prices hit an annual low, leading regions implemented lock-in operations, with news of expected production cuts from suppliers gradually emerging, leading to a predominantly weak consolidation in the butane market. As of December 29, the fixed price for butane in Shandong region was around 4800 yuan/ton, while liquid butane prices were around 4400 yuan/ton.
Upstream: In Shandong, the price for pure benzene in the region fluctuated. On January 1, it was priced at 5254.33 yuan/ton; by December 29, it had risen to 5268.67 yuan/ton, a slight increase of 0.25% from the beginning of the month. Recently, local refineries in Shandong have been cautious about shipping pure benzene, favoring stability in prices. Off-site transactions in the East China spot market were mundane, and paper traders negotiated generally, with many orders settled within the month. Prices for pure benzene by SINOPEC and PetroChina refineries in East and South China remained stable at 5300 yuan/ton.
Butane market: Butane prices fluctuated downward in December, with Saudi Arabia's crude palm oil prices adjusted upwards, but naphtha prices fell, leading to prices around 4570 yuan/ton for Shandong's butane by December 29.
Downstream: In November, unsaturated resin markets showed a weak trend, with declining costs due to falling butane prices and a lack of support from end-users at the end of the year. However, purchasing by downstream customers was primarily for essential needs, limiting support for unsaturated resins. Analysts from Business She's butane product team believe that with butane prices reaching an annual low and some manufacturers implementing lock-in operations, the market might see an upward trend soon.