Price trend

This week (4.3-4.7), the Shandong LPG market experienced a weak downturn. According to the monitoring of the Commodity Market Analysis System of SunSirs, the average price of LPG in the civilian Shandong market was 5,064 RMB/ton on April 3, and 5,106 RMB/ton on April 7. The weekly increase was 0.63%, and a decrease of 19.16% compared to the same period last year.

Analysis review

This week, the Shandong civilian market for LPG saw a slight increase, mainly due to news support. At the beginning of the week, due to a significant reduction in OPEC+ production to stabilize oil prices, sudden news caused crude oil to jump by more than 7%, news support increased, and LPG prices were boosted. Subsequently, the increase in crude oil weakened, and the support on the news side weakened. The positive news was exhausted, and the price of LPG stabilized. On the demand side, on the one hand, civilian gas was about to enter the off-season, and on the other hand, PDH had poor profits and low operating rates, chemical demand was less than expectations.

Market outlook

Overall, the positive effects of the surge in crude oil have been largely digested, and the demand for LPG is in the off-season, with seasonal pressure on spot prices. As the downstream just needed replenishment is basically in place, the market sentiment is weaker. It is expected that in the short term, the future LPG market will mainly fluctuate downward.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com