SunSirs: Poor Shipment, Obvious Drop in China LPG Market

In the middle of September, China domestic LPG market was weak, and the Shandong civil gas market fell significantly. According to the data monitoring of SunSirs, the average price of LPG in the civil Shandong market was 5,916.00 RMB/ ton on September 15 and 5,600.00 RMB/ ton on September 22, respectively, with a weekly drop of 2.34%, up 7.01% compared with the same period last year.

Last week, the domestic LPG market as a whole was mostly lower, and the Shandong civil gas market was significantly lower, with most manufacturers reducing their ex factory prices. The first is the cost. On September 15-22, the international crude oil dropped significantly, and the raw materials fell in a negative market mentality. The second is the demand. Although entering the peak season, the terminal demand is limited. The downstream has an obvious wait-and-see attitude, and the enthusiasm for entering the market is general. In terms of supply, upstream shipment is blocked, inventory and sales pressure is too high, and profits are continuously ceded, mainly for shipment.

From September 15 to 22, the LPG futures market was also weak. On September 22, the opening price of the LPG futures contract 2210 was 5,488, the highest price was 5,549, the lowest price was 5,370, the closing price was 5,426, the previous settlement price was 5,499, the settlement price was 5,452, down 73, the trading volume was 114,259, the position was 28,010, and the daily position increase was -4,440. (Quotation unit: RMB/ ton)

As of September 22, the international crude oil market continued to decline, bringing bad news to the market in terms of costs. Although with the continuous decline of civil gas prices, the lower reaches entered the market on bargain hunting, and the coming of the 11th small holiday, the market trading atmosphere has improved. However, the manufacturers have a general mentality, and they mainly arrange warehouses before the festival. Therefore, it is expected that China LPG price of Shandong civil gas market will be consolidated or weak in the short term.

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