SunSirs: China LNG Price Drops 20% in a Row

According to the data monitoring of SunSirs, the average price of domestic LNG on February 5 was 3,226.67 RMB/ ton, down 6.02% compared with the previous day, down 22.87% compared with 4,183.33 RMB/ ton at the beginning of the week, and up 4.42% compared with the same period last year.

Last week, domestic LNG continued to fall. Inner Mongolia, Shaanxi, Shanxi, Hebei and other places have collectively lowered their prices, with a daily decline of about 4% - 7%. In just a few days, the market price has dropped by 20%. Last week's sharp drop in liquid prices was mainly due to the coming Spring Festival, the shutdown of downstream users for holidays, the decline of purchasing enthusiasm, the decline of gas station sales, the continuous weakening of demand side, the abundant supply in the market, the recent competitive bidding of raw gas, the decrease of cost, the positive price reduction and shipment before the festival, the negative mentality of the industry, and the weak short-term market operation.

According to the data monitoring of SunSirs, the average price of domestic LNG on February 5 was 3,226.67 RMB/ ton, down 6.02% compared with the previous day, down 22.87% compared with 4,183.33 RMB/ ton at the beginning of the week, and up 4.42% compared with the same period last year. Inner Mongolia 3,180-3,600 RMB/ ton, Shaanxi 3,150-3,600 RMB/ ton, Shanxi 3,000-3,650 RMB/ ton, Ningxia 3,300-3,350 RMB/ ton, Henan 3,700-4,300 RMB/ ton, Sichuan 3,400-3,800 RMB/ ton, LNG price in various areas decreased in a large area.

SunSirs LNG analysts believe that: with the coming of Spring Festival, downstream users are stopping work for holidays, their purchasing enthusiasm is declining, the demand side continues to weaken, the supply side of the superimposed market is increasingly abundant, the contradiction between supply and demand is becoming increasingly obvious, the delivery of LNG plants is under pressure, the price falls again, and some of them are upside down, so the mentality of the operators is rather negative. It is expected that China LNG market price will decline before the Spring Festival.

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