In the first half of September, the LPG market continued to fall. According to the data monitoring of SunSirs, the average price of LPG in Shandong market on September 1 was 3,200.00 RMB/ ton, and that on September 15 was 2,923.33 RMB/ ton, a decrease of 8.65% and a decrease of 6.20% compared with January 1.
In the first week of September, although there was a decline in the LPG civil market, the amplitude was not large. At the end of August, with the introduction of Saudi Aramco's CP price in September, although there was a rise, the increase was significantly lower than expected, which provided limited support to the market. With the arrival of autumn, the terminal demand is expected to grow, but due to the current market situation has not been changed, the downstream purchasing capacity is insufficient, and the manufacturer's shipping atmosphere is not good. The market supply of liquefied gas has little change and the output is relatively sufficient. China LPG civil market fell slightly.
In the second week of September, the decline of LPG civil market remained unchanged, and the range was relatively obvious. International oil prices continued to fall, news negative market mentality. There was no increase in downstream demand, and the overall trading atmosphere in multiple markets was slightly light. In addition, the early shutdown of enterprises has been restored, the market supply has increased, increasing the sales pressure. Down stream is cautious. Manufacturers’ shipments were not improved, inventory pressure gradually increased. Continuously reduce the price and give priority to shipment. The prices of some manufacturers have fallen below 3,000 RMB/ ton.
As of September 16, most of the Southern markets were down, with poor demand in South China and poor trading atmosphere in the market. Refinery prices fell sharply, with a range of 50-100 RMB/ ton. The decline range of the northern market was narrowed, and the prices of some enterprises were still up and down slightly. The price in Shandong was up or down by about 20 RMB/ ton, while the price in Northeast China was relatively strong.
On September 15, 2020, the opening price of LPG futures was 3,425, the highest price was 3,445, the lowest price was 3,377, the closing price was 3,402, the previous settlement price was 3,414, and the settlement price was 3,413, down 12 or 0.35%, the trading volume was 131,504, the position was 81,542, and the daily increase was -1,238. (unit: RMB/ ton)
At present, the international crude oil price falls sharply, which forms a significant pressure on the LPG market. Although the weather and temperature in the North has turned cold, the temperature is still relatively high, the terminal demand continues to be poor, the enthusiasm of downstream market entry is not high, and the market supply is sufficient, the manufacturer's shipment situation is general, and the inventory is mostly in the middle and high level. In the first ten days of September, the negative atmosphere of the market was relatively strong, and the downstream lacked confidence in the future market. In the short term, it is difficult to make an obvious breakthrough in the civil market of LPG. In the long run, China terminal demand of LPG is still expected to improve, and the downstream storage and replenishment demand before National holidays, the market is still expected to rise.
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