In June, the civilian LPG market in Shandong experienced a downward trend, with a slight decrease compared to May. According to data monitoring by Business Society, the average price of LPG in the civilian Shandong market was 4,114 RMB/ton on June 1st, and 3,784 RMB/ton on June 28th. The monthly decline was 8.02%, a 35.6% decrease compared to the same period last year.

In June, the LPG market showed a rising and falling trend, with the overall market being constrained by demand and continuing to decline. At the beginning of the month, following the downward trend in May, the low-end quotation fell below 4,000 RMB/ton. Subsequently, downstream bargains entered the market, and the market atmosphere slightly improved, with prices slightly rising. However, due to the overall impact of the off-season demand and loose supply on the market, the import market maintains a relatively high landed volume, and low-priced imported goods continue to suppress the market, resulting in weak growth. After the Dragon Boat Festival, due to the high temperature affecting gas consumption, the demand for terminal replenishment has brought a relatively limited boost, and the price of LPG continues to decline weakly. Under the contradiction between supply and demand, the market has experienced multiple small ups and downs throughout the month.

The LPG futures market continued to decline in June, and from the demand side, the demand for civilian gas remains tepid, with downstream purchases being more on demand. The demand for chemical terminals is still poor, but lower costs have to some extent driven the operating rate to maintain a high level. During the peak summer travel season, there is still room for an increase in the operating rate of the oil transfer market. Overall, there are no prominent contradictions in the fundamentals of LPG, and it is expected that the futures price will fluctuate mainly,

Overall, in the off-season of demand, demand remains weak, and short-term positive market conditions have limited boost. It is expected that the LPG market will mainly fluctuate and decline in July.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.