SunSirs: The Rising Trend of China LNG has Continued

According to the data of SunSirs, on October 23, the average price of domestic LNG was 3,223.33 RMB/ ton, up 7.8% compared with the beginning of the week (October 19), up 34.12% month on month, and 14.12% lower than the same period last year.

Analysis of Influencing Factors

Last week, the domestic LNG market was still in a continuous upward trend. The price in Many places rose to above 3000 RMB, Shaanxi, Shanxi, Inner Mongolia, Ningxia, Xinjiang, etc. had increased significantly. The price of LNG plants had increased 100-250 RMB/ ton during the week, which pushed up the sentiment. Since October 20, the benchmark price of feed gas has been raised by 0.1 RMB/ m3 to 1.38 RMB/ m3, which has boosted the market once again. Meanwhile, the price of inlet gas also showed an upward trend, driving up the atmosphere of LNG market. At present, some cities in northern China have begun heating, the demand is expected to increase, the downstream replenishment is positive, and the supply of LNG plants is relatively sufficient. Last week, the construction started to improve, and there are not many maintenance of enterprises. The LNG plant had no pressure in inventory, and the goods could be transported smoothly. The overall market mentality was good, and the price was rising steadily.

According to the data monitoring of SunSirs, as of October 23, the average price is around 3,210 RMB/ ton in Inner Mongolia; 3,340 RMB/ ton in Shaanxi; 3,360 RMB/ ton in Shanxi; 3,630 RMB/ ton in Xinjiang; 3,220 RMB/ ton in Ningxia, and 2,790 RMB/ ton in Sichuan. The price of many places is rising.

Market Forecast

SunSirs LNG analysts believe that: with the begining of winter heating, some areas have begun to fuel and replenish, and the demand is gradually increasing. The downstream procurement is more active, the production and sales of LNG plants are not under pressure, the market atmosphere is good, and the price is pushed up strongly. China domestic LNG prices are generally rising, and it is expected that China domestic LNG market will continue to rise in the short term.

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