SunSirs: Energy, Domestic LPG Market was Down Continuously Last Week (February 3-7)

1  Price Trend

Last week, the domestic LPG (Shandong) market continued to decline. On February 3, the average price of the LPG market was 3,733.33 RMB/ ton, and on February 7, the average price was 3,650 RMB/ ton, with a drop of 2.23% in the week. The price was 6.81% lower than the same period last year.

2  Market Analysis

Product: was weak, and the market trading atmosphere was flat, with a weak trading atmosphere. As of February 7, the price of LPG from Sinopec Guangzhou Chemical Co., Ltd. was 3,850 RMB/ ton, from Sinopec Jingmen Petrochemical Co., Ltd. was 3,850 RMB/ ton, from Sinopec Shanghai Petrochemical Co., Ltd. was 3,620 RMB/ ton, from Sinopec Qingdao Refining Chemical Co., Ltd. was 3,450 RMB/ ton, from Sinopec Shijiazhuang Refining Chemical Co., Ltd. was 3,500 RMB/ ton, from Sinopec Sinopec The factory price of Luoyang Petrochemical LPG was 3,400 RMB/ ton.

Last week, LPG market (Shandong) continued to decline. After the Spring Festival, the international crude oil fell mainly, which made a negative effect on the market. At present, the domestic market is delayed to start, and the demand is significantly reduced. The downstream market is mainly cautious and wait-and-see, and the enthusiasm for entering the market is not good. The manufacturer's shipment has been blocked continuously, and the inventory pressure is relatively obvious. Although there is a demand for storage and replenishment after the festival, the market has not improved at present, and the price has been continuously weak.

Saudi Aramco issued CP in February, with propane of $505/ ton, down $60/ ton compared with the previous month; butane of $545/ ton, down $45/ ton compared with the previous month.

Industry: according to the price monitoring of SunSirs, there are two kinds of commodities in the list of commodity prices rising and falling in the fifth week of 2020 (2.3-2.7). The top 2 commodities were thermal coal (1.47%) and petroleum coke (1.38%). There were eight kinds of commodities falling on a month on month basis, and 1 kind of commodities falling by more than 5%, accounting for 6.3% of the number of commodities monitored in the sector; the top 3 products falling were DME (-6.69%), Brent crude oil (-2.98%) and LPG (-2.23%). Last week's average was -0.82%.

3  Market Forecast

Although the Spring Festival has past, the current domestic market is delayed to start, resulting in a significant reduction in demand, the manufacturer's inventory pressure after the holiday is large, and the continuous interest to stimulate the downstream market, but there is no obvious effect, it is expected to continue to decline next week or the trend.

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