In March, the civilian LPG market in Shandong experienced a volatile decline. According to data monitoring from SunSirs, the average price of LPG in the civilian Shandong market was 4,870 RMB/ton on March 1st, and 4,810 RMB/ton on March 28th. The monthly decline was 1.23%, a 3.06% decrease compared to the same period last year.

The overall performance of Shandong's LPG market in March was average, with significant impact from demand. In the first half of the month, downstream factories unexpectedly shut down, resulting in a significant decrease in demand. On site supply has turned from tight to loose, and downstream consumers have shown a clear resistance to high prices. In addition, civilian combustion demand has entered the off-season with warmer weather, putting pressure on LPG prices. In the second half of the month, the price of LPG dropped to a low level, and downstream restocking on dips led to an increase in trading volume. At the same time, with the rise of international oil prices and the support of various positive factors, the price of LPG has stopped falling and risen. However, overall demand fell short of expectations and the rebound was weak. Compared to the prices at the beginning of the month, the overall market decline in March came to an end.

The LPG futures market in March showed a fluctuating trend in the range. Overall, the market supply was loose throughout the month, and the impact of the off-season has recently suppressed market sentiment. However, the expectation of positive chemical demand in the future and the strengthening of crude oil have formed a bottom, maintaining a range of fluctuations overall.

Overall, the loose supply situation in the domestic market will continue for a period of time. In late March, imports will remain at a high level, and the degree of supply easing will be enhanced. At the same time, the slowdown in combustion demand will further suppress the market. Chemical demand will first maintain stability and support the price of LPG. It is expected that the LPG market will fluctuate downward in the short term.

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