- Price Trend
Last week, the domestic LPG market rose strongly. At the beginning of the week, the average price of the domestic LPG (Shandong) market was 3,896.67 RMB/ton, while at the end of the week, the average price was 3,960 RMB/ton, up 1.63% in the week, with the price down 4.35% compared with the same period last year.
- Analysis of Influencing Factors
Product: last week, the domestic LPG market overall went up, and the market trading atmosphere improved. As of 6 December, the price of LPG of Sinopec Guangzhou Chemical Co., Ltd. was 4,060 RMB/ton, of Sinopec Jingmen Petrochemical Co., Ltd. was 4,300 RMB/ton, of Sinopec Shanghai Petrochemical Co., Ltd. was 3,910 RMB/ton, of Sinopec Qingdao Refining Chemical Co., Ltd. was 3,900 RMB/ton, of Sinopec Shijiazhuang Refining Chemical Co., Ltd. was 3,900 RMB/ton, of Sinopec The factory price of Luoyang Petrochemical LPG was 4,150 RMB/ton.
Last week, China's civil LPG market remained an upward trend. The Northeast market showed a steady rise in civil use and raw materials. The South China market continued to rise, with a fair atmosphere. The East China market showed a slight rise, with a strong mentality. The inventory in the riverside market continued to rise without pressure. The Shandong market had a positive rise. At the beginning of last week, although CP rose in December, which was good for the market, the international crude oil fell significantly, which suppressed the price rise, but the manufacturers' mentality of supporting the market was obvious, and the price rose steadily. In the later period, crude oil rebounded sharply. In addition, the weather turned cold and the terminal consumption accelerated, the downstream market was active, the market transaction atmosphere improved, and the price rose strongly.
Saudi Aramco's December CP announced a slight increase in propylene butane. Propane rose to $440 /ton, up $10 / ton from last month; butane $455 / ton, up $10 / ton from last month.
Industry: according to the price monitoring of SunSirs, in the 48th week of 2019 (12.2-12.6), there were 10 kinds of commodities rising month on month in the energy sector, among which there were 3 kinds of commodities rising by more than 5%, accounting for 18.8% of the number of commodities monitored in the sector; the top 3 commodities were WTI crude oil (5.91%), MTBE (5.62%) and gasoline (5.07%). There were 2 kinds of commodities falling on a month on month basis, the first two products falling were LNG (- 0.58%) and fuel oil (- 0.22%). Last week's average was up or down 1.71%.
- Market Forecast
According to the LPG analyst of SunSirs, at present, crude oil rebounds sharply, and CP rises in December, which is good for the market. In addition, affected by seasonal factors, the weather is cooling down, the downstream replenishment cycle is shortened, and the enthusiasm for entering the market is high. At present, the manufacturer's shipment is relatively smooth, and the inventory is not under pressure. It is expected that LPG will still be upward this week.
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