SunSirs: China LPG Market was Ups and Downs in June

In June, the overall LPG civil market rose slightly, and the period was dominated by shocks. According to the data monitoring of SunSirs, the average price of LPG in Shandong market was 2,750.00 RMB/ ton on June 1, and 2,793.33 RMB/ ton on June 30, with an increase of 1.58% and the maximum earthquake amplitude of 4.95%.

In the first ten days of June (1-10), the market was in an upward trend. The trend of international crude oil is good. On June 2, WTI crude oil and Brent crude oil respectively reached the high points in recent three months, and Saudi Aramco's CP price in June was higher than expected, which brought good news to the market. LPG rose positively. The domestic gas in Shandong increased by 50-100 RMB/ ton, and the national market also rose to varying degrees. The downstream mentality was good, the market replenishment was positive, the factory shipment situation was good; the price was firm, and rose for three days in a row.

In the middle of June (10-20), the market mainly fell. Under the impact of crude oil slump on June 11, the market lacks favorable support, the enthusiasm of downstream market entry is weakened, and the pressure of manufacturers to ship goods was greater, and the overall weakness was down. In the later period, the market was boosted again by the continuous rise of international crude oil for 3 days, and LPG followed the rise. But this rally was too short-lived, only two days after the rise turned back to the downward channel.

In late June (20-30), the market rose first and then fell. Due to the close of the Dragon Boat Festival holiday, the market trading atmosphere was good, the price rose slightly. However, affected by seasonal factors, it was difficult for manufacturers to ship goods, and it went down again after the holiday.

In June, the overall atmosphere of shipment was flat, and most manufacturers were still in a state of imbalance between production and sales. In July, the Saudi Aramco CP was introduced, and the propylene butane increased by $10/ ton, better than expected, which brought obvious support to the market. However, the traditional off-season in July has not passed, and the demand of the terminal market in summer is limited. It is expected that the market will rise first and then fall in August.

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