SunSirs: The off-season continued, China LPG Market Fell steadily in Early August

In the first week of August, China domestic LPG market was still weak as a whole, and the Shandong civil gas market fell steadily. According to the monitoring data of SunSirs, the average price of LPG in Shandong civil market was 5,626.00 RMB/ ton on August 1 and 5,600.00 RMB/ ton on August 4, with a decrease of 0.46% during the week and an increase of 17.07% over the same period last year.

At the beginning of August, the domestic LPG market continued its off-season, and the overall trend was weak. It was difficult to find a good market, and the Shandong civil gas market fell steadily. In terms of cost, the international crude oil market fell mainly during the week, bringing obvious bad news to the market. In August, CP was introduced, and both propylene and butane fell sharply, which hit the mentality of the domestic market. In terms of demand, the weather in August was hot, and the terminal demand did not improve significantly. The downstream maintained more on-demand replenishment, and the market trading atmosphere was poor. The negative factors in the civil LPG market are obvious, and the price remains weak.

At the beginning of August, the LPG futures market fluctuated and fell, which brought limited support to the spot market. On August 4, the opening price of LPG futures contract 2,209 was 5,472, the highest price was 5,488, the lowest price was 5,287, the closing price was 5,304, the previous settlement price was 5,376, the settlement price was 5,375, down 72, the trading volume was 109,143, the position was 52,803, and the daily increase was -4,233. (quotation unit: RMB/ ton)

At present, the international crude oil is weak, the support brought by the cost to the market is limited, the terminal demand has not been significantly improved, the negative impact brought by the demand is obvious, the market trading atmosphere is weak, the supply of Shandong market is relatively sufficient, and the positive factors of the domestic LPG market are insufficient. It is expected that the price of China Shandong civil gas market will be weak in the short term.

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