SunSirs: China LPG Market in late June is Uncertain

According to the data monitoring of SunSirs, in late June, the overall LPG civil market showed a downward trend. On June 14, the average price of LPG civil market in Shandong was 2,866.67 RMB/ ton, and on June 29 it was 2,793.33 RMB/ ton, with a decrease of 2.56% during the period and a decrease of 26.49% compared with the same period last year.

In the last ten days of June, the civil use of liquefied petroleum gas (LPG) switched its upward trend to a downward trend. In the first ten days of June, the trend of international crude oil was better, which brought a significant boost to the civil gas market. Manufacturers pushed up the price of crude oil in the first ten days (June 1-12) by nearly 8%. However, in June, the weather was hot and the terminal demand was reduced, which brought obvious restraint to the market. The rising LPG was insufficient and finally returned to the downward line. On June 15, the one-day drop was as high as 4.07%.

From June 15 to 17, international crude oil rose for three consecutive days, boosting the market again, and LPG followed the rise. But this rally was too short-lived, only two days after the rise turned back to the downward channel. Until June 22, approaching the Dragon Boat Festival holiday, downstream demand for replenishment before the festival was more positive, the market atmosphere was better, manufacturers' shipment situation improved, and prices rose slightly. However, manufacturers' inventory pressure was not fully released and affected by seasonal factors, manufacturers' shipment was difficult, and it went down again after the festival. In terms of supply, the start-up of manufacturers was relatively stable, and the supply of civil gas was slightly increased compared with the previous week.

At present, the trend of international crude oil is uncertain, which has limited support for the LPG market. The current market is still affected by seasonal factors. In summer, the terminal market demand is limited, the downstream replenishment is finished, and the delisting consumption of inventory is mainly. The market transaction atmosphere is weakened, and it is expected to continue the weak trend in the short term.

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