Price trend

According to the Commodity Market Analysis System of SunSirs, as of May 31, the average price of LNG in China was 3,760 RMB/ton, which decreased by 2.46% compared to the average price of 4,416 RMB/ton on May 1.

Analysis review

According to the weekly increase and decrease from March 6, 2022 to May 22, 2023, it can be seen that domestic LNG experienced a significant decline in May, with the largest decline in May being 6.25% in the week of May 1.

Domestic LNG prices fluctuated and fell this month. In mid to early May, there was an oversupply in the market, trading on the market was weak, LNG plants had strong willingness to discharge inventory, the price of LNG decreased. Coupled with the decline in costs, the price of LNG continued to weaken. in the off-season, natural gas demand was performing poorly, downstream restocked on demand and market transactions was limited. In terms of imported LNG, the LNG price at the receiving terminal had been lowered. In late May, as LNG prices continued to decline, downstream procurement began to increase, and domestic LNG prices began to stop falling and rise. However, the upward space was limited, and the market was consolidating in a narrow range.

Market outlook

LNG analysts from SunSirs believe that the LNG prices were adjusted narrowly recently, market supply was high, while terminal demand remained sluggish. Affected by the price reduction of imported gas, domestic gas was lowered from a high level. It is expected that the domestic LNG market will mainly be consolidate to be weaker in the short term.

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