SunSirs: Under Multiple Favorable Conditions, China LPG Market Keeps Rising

Last week (7.20-24) the LPG civil market was more positive, and the price continued to rise. According to the data monitoring of SunSirs, the average price of LPG in Shandong market was 2,933.33 RMB/ ton on July 20, 3,110.00 RMB/ ton on the 24th, with an increase of 6.02% in the week, and the price was 10.41% higher than that half a month ago (July 13).

Last week (7.20-24), the civil market of LPG in Shandong continued to rise, with an increase of about 250 RMB/ ton during the week. During the week, the overall international crude oil rose slightly, which brought some support to the market. Civil gas mainly followed the rise. In the downstream buying mentality, they were more active in entering the market. The market atmosphere was good, the manufacturers delivered goods continuously and smoothly. Under the low inventory operation, the mentality was strong. At present, CP expects the price to rise in August, which improves the mentality of the industry to a certain extent. In terms of domestic supply, the supply of domestic gas has been reduced by a small margin. There were many positive factors during the week, and gas prices continued to rise.

In the last week, the increase was larger, and the lower reaches of the market were more active in the early stage, mainly replenishing goods in the market. But in the later stage, with the price rising too fast, the downstream resistance mentality strengthened, and after the replenishment, they withdrew from the market one after another. Considering that it is still in July, which is still the traditional off-season, the weather temperature is high, the terminal demand needs to be improved, and the driving force of continued rising in the later stage may be insufficient. However, as the overall inventory in the region is under control, it is expected that the trend of civil gas market will stabilize first and then rise in the short term.

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