On November 28, 2025, China's domestic liquefied petroleum gas (LPG) market prices rose, with the average price reaching RMB4,360 per ton. This represents an increase of RMB19 per ton compared to the previous business day, marking a 0.44% rise.

Spot market: The domestic LPG market remained largely stable, with downstream buyers primarily making essential purchases. Prices may fluctuate within a narrow range in the short term. Supply: Domestic product volume increased compared to the previous period. Demand: Among chemical downstream sectors, PDH plant operating rates rose slightly, MTBE rates remained unchanged, while alkylation rates declined. Inventories: Port arrivals decreased this period, leading to a downward trend in port inventories, while on-site inventories also declined. Cost-wise, instability in the Russia-Ukraine situation remains pronounced. Combined with expectations of Fed rate cuts, international oil prices rose. Overall, domestic supply increased slightly while import arrivals decreased. Chemical demand remained relatively stable, with combustion demand gradually rising due to falling temperatures.

The international market showed a trend of rising first and then falling, but the overall price center shifted upward. Non-US cargo supply remains tight amid robust market buying interest. January Middle East cargo negotiations are active with firm demand. The arbitrage window between Europe/US and Far East markets remains open, though buying interest has weakened as Far East arbitrage opportunities shrink. In the Far East market, LPG prices rose initially before declining. Strong early buying supported prices, but they began falling later due to weakening crude oil prices. In the shipping market, charter demand increased this week, leading to slight freight rate hikes for Middle East to Far East and US Gulf to Far East routes.

East China Region: On the previous working day, the average price of commercial gas rose by 13 RMB/ton to 4,360 RMB/ton, a 0.30% increase.

This week, the East China market primarily saw price increases, with overall performance remaining strong. The December CP was released higher late last week, with rising import costs bolstering sentiment across the supply chain. Refinery supply tightened, concentrated in Shanghai and Jiangsu, while Zhejiang's already limited supply further narrowed overall availability. On the demand side, chemical demand saw slight improvement this week. Downstream buyers showed strong purchasing enthusiasm amid the upward trend, while robust performance in Central and South China boosted overall sentiment in East China. For imported gas, elevated import costs bolstered importer confidence. Recent arrivals in East China remained persistently low, with no immediate pressure for port shipments. However, the significant price gap with domestic gas meant this week's import price increases were less pronounced than domestic gas hikes. Most downstream buyers opted for low-price orders, limiting high-price transactions.

South China Region: On the previous working day, the average price of residential gas rose by 25 RMB/ton to 4,360 RMB/ton, an increase of 0.58%.

This week, the South China LPG market saw across-the-board increases, primarily supported by tight supply and rising costs. In the residential gas segment, terminals led the price hikes in the region. Due to delayed port arrivals, some storage areas faced low or near-empty inventories. Coupled with expectations of rising costs, importers successively pushed prices upward. Refineries, operating under low supply and inventory conditions, were driven by terminal price increases and quickly followed suit with catch-up hikes midweek. With the final December CP price confirmed at an increase largely in line with expectations, and subsequent vessel arrivals gradually replenishing supplies, terminals saw improved sales momentum driven by profit margins. For industrial gas, refineries experienced some relief in supply pressure. Support came from slight increases in terminal gasoline prices and the strong performance of residential gas, leading to a corresponding upward shift in industrial gas pricing.

Shandong Region: On the previous working day, the average price of civil gas rose by 10 RMB/ton to 4,460 RMB/ton, an increase of 0.22%. For ether-treated C4, the market average price increased by 6 RMB/ton to 4,281 RMB/ton.

This week, Shandong's civil gas market stabilized before rising, with the market center gradually climbing to a two-month high. Early in the week, market fluctuations were limited. Refineries maintained smooth sales volumes supported by strong demand, but low downstream MTBE and propane prices dampened adjustment momentum. Later in the week, as CP increases took effect, import costs rose significantly, driving up related propane prices. This slightly improved profitability for downstream chemical plants, boosting market sentiment. Some enterprises implemented small price hikes, and the price spread for resources within Shandong Province is gradually narrowing.

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