SunSirs: Energy, Domestic LPG Market Continued to Rise Last week (December 16-20)

1. Price Trend

Last week, the domestic LPG market continued to rise. At the beginning of the week, the average price of the domestic LPG (Shandong) market was 4,093.33 RMB/ ton, while at the end of the week, the average price was 4,316.67 RMB/ ton, up 5.46% in the week, 0.39% higher than the same period last year.

2. Analysis of Influencing Factors

Product: As of December 20, the domestic LPG market rose sharply last week, with a good trading atmosphere. The price of LPG of Sinopec Guangzhou Chemical Co., Ltd. was 4,700 RMB/ ton, of Sinopec Jingmen Petrochemical Co., Ltd. was 4,900 RMB/ ton, of Sinopec Shanghai Petrochemical Co., Ltd. was 4,330 RMB/ ton, of Sinopec Qingdao Refining Chemical Co., Ltd. was 4,200 RMB/ ton, of Sinopec Shijiazhuang Refining Chemical Co., Ltd. wasw 4,300 RMB/ ton, of Sinopec Sinopec Luoyang Petrochemical LPG factory price was 4,500 RMB/ ton.

Last week, China's LPG market was dominated by civil gas. Under the favorable conditions of tight international spot supply, the price continued to rise. At present, the price has risen to a relatively high level, and the downstream is in a state of conflict with the high price. The market transaction was reduced. However, the price difference between civil gas and propane is large at present, and the manufacturer's mentality is relatively strong due to strong seasonal factors.

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 50th week of 2019 (12.16-12.20), there were 7 kinds of commodities rising month on month in the energy sector, including 1 kind of commodities rising by more than 5%, accounting for 6.3% of the number of commodities monitored in the sector; the top 3 commodities are LPG (5.46%), DME (2.79%) and petroleum coke (2.27%). There WERE 6 kinds of commodities falling on a month on month basis, and the top 3 products falling were MTBE (- 2.04%), LNG (- 1.50%) and methanol (- 1.42%). Last week's average up and down was 0.5%.

3. Market Forecast

According to LNG analyst of SunSirs, at present, the price difference between civil gas and propane is large. In addition, affected by seasonal factors, the weather is cooling, the downstream replenishment cycle is shortened, the enthusiasm for entering the market is high, and the manufacturer's mentality is relatively strong. However, there are still differences between the north and the south. It is expected that the national market will fluctuate next week, and Shandong market will adjust slightly.

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