Market for Propane

January 22nd, 2019

I love grilling out! It is one of my favorite things to do...…………………….

 

Today’s post is by Ashley Riviello, Account Manager at SafeSourcing, Inc.

According to Trading Economics, propane was quoted at 0.68 USD/GAL on Thursday December 27, 2018. Propane reached an all-time high of 1.67 in February of 2014 and a record low of 0.33 in January of 2016. Propane is expected to trade at 0.71 USD/GAL by the end of this quarter, according to Trading Economics global macro models and analysts’ expectations. Looking forward, we estimate it to trade at 0.66 in 12-months’ time.

I have been working on an RFQ for a few weeks. This RFQ was actually one that I did on my own since starting back with SafeSourcing, Inc. I obviously had to do my market research and found out that propane has declined. Prices are going down drastically.

I love grilling out! It is one of my favorite things to do. It’s also something that most households in the US enjoy doing as well. Many appliances run on propane also. Obviously, the most common propane appliance is an outdoor grill; however, households can run almost exclusively on propane…from dryers to space heating.

According to the website Propane Deal (a website dedicated to having access to not only statistics about propane usage, but also where to find propane dealers near you), 47million people in the US use propane for grills and 14.3 million households run on propane. This accounts for about 4.5% of the population. The Midwest region has the highest residential propane consumption (8% of all households); Michigan is the state with the most residential propane users (6.6% of all homes). On average, a US household consumes 464 gallons of propane every year. That is a lot of propane for one household. Approximately 47-million people in the US use propane in their everyday lives.

If you are reading this, and you have a huge demand for propane, now is the time to find the best deal. The market is going down, but the need for propane is rising. Let us save you money on things you need in your everyday life. We have the ability to save you 5-30% annually on your propane needs.

For more information on how SafeSourcing can help in your procurement efforts, or on our Risk Free trial program, please contact a SafeSourcing Customer Service Representative. We have an entire team ready to assist you today.

References….………………………………………………………………………

  1. www.cdn.tradingeconomics.com/commodity/propane 2019
  2. www.propanedeal.com/basics/propane-usage 2018
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