According to data monitoring of SunSirs, the average price of LNG on May 28 was 2,533.33 RMB/ ton, down 5% from last Thursday (May 21), 13.14% from the beginning of May and 32.2% from the same period last year. On May 28, the LNG commodity index was 62.44, down 0.41 points from the previous day, a new low in the history of the cycle, down 70.12% from the high of 208.96 on December 25, 2017. (Note: cycle refers to 2012-09-01 to now)

According to SunSirs data monitoring, as of May 28, the average price of domestic LNG was 2,533.33 RMB/ ton, the price in Inner Mongolia was around 2,500 RMB/ ton, in Shaanxi was around 2,600 RMB/ ton, in Sichuan was around 2,800 RMB/ ton, in Shanxi was around 2,700 RMB/ ton, in Xinjiang was around 2,200-3,000 RMB/ ton, and the LNG price in all regions has not declined to a certain extent. The trend has been slowed down and tends to be stable. In some areas, the price of LNG market is still weak as a whole, due to the effect of price reduction and storage arrangement in the early stage is acceptable.

In recent days, the decline of domestic LNG has not stopped. In the off-season of consumption, domestic demand is limited, other regions are not optimistic, and prices are under pressure. At present, the start-up load of some liquid plants has been reduced to reduce the inventory pressure, and some liquid plants have maintenance plans. However, the contradiction between market supply and demand still exists. In addition, recently, imported LNG ships are intensively landed, the price has been continuously reduced, the transportation radius has been continuously expanded, the competition with domestic LNG is fierce, the end-users have more price comparison to get the goods, the domestic liquid plants have a general shipping situation, and the market delivery and investment atmosphere is weak. In the absence of obvious improvement in the demand side, the domestic LNG market is in a difficult situation, and in the short term, the pressure on the liquid price is low or normal.

According to the price monitoring of SunSirs, there were 11 kinds of commodities in the list of commodity prices rising and falling on May 27, 2020, among which WTI crude oil (3.31%), Brent crude oil (1.72%) and gasoline (1.42%) were the top 3 commodities. There were 2 kinds of commodities falling on a month on month basis, the first two products falling were DME (-2.37%) and LNG (-1.04%). The average price of this day is 0.47%.

Market Forecast

According to the LNG analyst of SunSirs, the current consumption is in the off-season, with sufficient gas source, no obvious improvement in market demand, weak terminal receiving, and difficult to achieve a short-term balance between supply and demand. It is expected that the domestic LNG market will be stable in the short term.

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