- Price Trend
Last week, the domestic Liquefied Petroleum Gas (LPG) (Shandong) market pushed up slightly. At the beginning of the week, the average price of the domestic liquefied gas market was 3,876.67 RMB/ton, while at the end of the week, the average price was 3,890 RMB/ton, up 0.34% in the week, and the price was 12.9% lower than the same period last year.
- Analysis of Influencing Factors
Products: last week, the domestic LPG was narrow range adjustment, the market trading atmosphere improved. As of November 15. The price of LPG of Sinopec Guangzhou Chemical Co., Ltd. was 3,840 RMB/ton, of Sinopec Jingmen Petrochemical Co., Ltd. was 4,000 RMB/ton, of Sinopec Shanghai Petrochemical Co., Ltd. was 3,650 RMB/ton, of Sinopec Qingdao Refining Chemical Co., Ltd. was 3,750 RMB/ton, of Sinopec Shijiazhuang Refining Chemical Co., Ltd. was 3,750 RMB/ton, and of Luoyang Petrochemical Co., Ltd. was 3,900 RMB/ton.
Last week, the domestic LPG (Shandong) market rose steadily, with no obvious fluctuation. The recovery of LPG market has stimulated the mentality of propane downstream replenishment and driven the atmosphere of propane transaction. At the beginning of the week, international crude oil continued to fall. In the face of news that the market continued to be bullish, petrochemical enterprises cut prices, and most manufacturers followed suit. The downstream demand was flat, and the upstream traders mainly delivered goods. Thursday's slight rise in crude oil boosted the market, but in the north of the heating season, terminal demand did not improve substantially. After the price reduction, the shipment has improved, the inventory pressure has been eased, and the manufacturers have increased slightly.
Industrial chain:
Dimethyl ether (DME): last Tuesday, the market price of DME (Henan) continued to fall. The downstream had a negative attitude towards the future market, and had no intention to enter the market for the continuously falling market, and was cautious and wait-and-see. At present, there is no obvious improvement in market demand, and the shipment of manufacturers is not smooth. The inventory in Henan Province is increasing gradually, and the mentality is relatively tired. This week, The company xinlianxin repeatedly implemented the minimum guarantee policy. The price of most of the manufacturers fell below 3,000 RMB/ton. At present, the price has fallen to the cost, and some enterprises' profits are hanging upside down, reducing production to ease the pressure of sales and inventory.
Propane: last week, the propane market adjusted sideways, and the trading atmosphere slightly improved. At the beginning of the week, the international crude oil fell continuously, and the trend of the LPG market was weak. In addition, the imported gas resources were abundant and the price was low, which hit the enthusiasm of the downstream market. The market transaction atmosphere was weak, and the demand was average. The main enterprises delivered profits and the price fell slightly. Later in the week, with the slight increase of international crude oil and the decrease of propane price, the mentality of downstream replenishment was stimulated. The trading atmosphere was gradually improved. The market rose and fell mutually, and Shandong market recovered after the slight increase.
Saudi Aramco announced in November CP that all of the propanbutane had been increased. Propane rose to $430/ton, up $10/ton from last month; butane rose $44/ton, up $10/ton from last month. The c.i.f. cost of long-term propane is about 3,844 RMB/ton, and butane is about 3,916 RMB/ton.
Industry: according to the price monitoring of SunSirs, in the 45th week of 2019 (11.11-11.15), there are three kinds of commodities rising month on month in the energy sector, the top 3 of which are liquefied natural gas(LNG) (3.27%), MTBE (1.23%) and liquefied petroleum gas (LPG) (0.34%). There are ten kinds of commodities falling on a month on month basis, with methanol (- 4.10%), petroleum coke (- 3.96%) and dimethyl ether (- 2.98%) as the top 3. This week's average was - 0.57%.
- Market Forecast
Liquefied gas analysts believe that: the current price is relatively low, the downstream mentality has improved, replenishment into the market. Business analysts believe that the price of LPG is relatively low at present, and the downstream mentality has improved. Market demand is still expected to increase, the seller's mentality is strong, and the willingness to decline is not strong. It is expected to stabilize first and then rise next week.
If you have any questions, please feel free to contact SunSirs with support@sunsirs.com .