According to the Commodity Market Analysis System of Shengyishe, as of November 30th, the average price of LNG in China was 6,646 RMB/ton, which is 5,140 RMB/ton higher than the average price on November 1st. This month, the price of LNG in China has increased by 29.30%.

The domestic LNG prices have significantly increased this month. In early November, domestic LNG prices fell sharply. There is sufficient market supply and a large number of heavy vehicles. Downstream replenishment enthusiasm has weakened, market demand is weak, upward momentum is insufficient, and the trend of LNG has declined. In mid November, cold air hit China and liquid prices began to rise. With the arrival of cooling and snowfall weather, coupled with the heating period, the demand for downstream replenishment has increased. Under the policy of limiting gas and ensuring supply, some liquid plants have reduced production and operation, resulting in reduced market supply and no pressure on liquid levels. In late November, the price of LNG in China increased significantly. On the afternoon of November 29th, during the first week of December (December 1st to December 7th), the bidding price for raw gas at PetroChina Northwest Liquid Plant was 4.4-4.51 RMB/cubic meter, with a lower price increase of 1.42 RMB/cubic meter compared to the previous period and a higher price increase of 1.52 RMB/cubic meter compared to the previous period. All 62.16 million cubic meters were sold. The significant increase in raw material gas prices has led to a collective surge in liquid prices, with some liquid factories experiencing prices exceeding 7,000 RMB. In terms of sea and gas, the prices of receiving stations have increased.

According to the weekly K-bar chart from September 4, 2023 to November 20, 2023, it can be seen that domestic LNG rose significantly in November, with the largest increase of 4.4% in the week of November 20.

LNG analysts from SunSirs believe that the recent cold weather has led to a reduction in supply under gas restriction policies, coupled with an increase in raw gas prices. Under the combination of positive factors, the domestic LNG market continues to rise. It is expected that domestic LNG will continue to operate strongly in the short term, but the recent high growth rate has limited downstream delivery capacity, and caution is still needed.

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