The latest market data after December 1, 2025 shows that the market cost of LPG (civilian gas, automobile transportation) in Shandong is driving up. As of December 9th, the benchmark price of LPG in SunSirs was 4,527.50 RMB/ton, an increase of 0.78% compared to the beginning of this month (4,492.50 RMB/ton).

Cost side: The rise in CP in December directly raised the bottom line of imported LPG costs, providing solid cost support for the entire market and strengthening the mentality of both buyers and sellers.

Supply side: The reduction in supply from local refineries in East China, especially in Shanghai and Jiangsu, coupled with the inherent tight supply in Zhejiang, has led to a significant decrease in regional supply, forming the fundamental basis for price increases.

Demand side: The demand for chemical industry has rigid support and has slightly rebounded. Under the mentality of 'buying up, not buying down', downstream purchasing enthusiasm is stimulated. The key external factor is the strong performance of the adjacent markets in Central and South China, which has created a regional bullish atmosphere and further boosted the sentiment of the East China market.

Market differentiation and constraints

Domestic gas vs imported gas: Despite the increase in import costs and the shortage of ships, the price difference between imported gas and domestic gas has widened to a high level, weakening its competitiveness. Therefore, although imported gas has increased, its growth rate is significantly lagging behind that of domestic gas.

Limited acceptance of high prices: There is a clear "price ceiling" in the market. Downstream users, especially cost sensitive enterprises, generally choose to purchase and lock in sources at relatively low prices. For high priced resources, actual transactions are limited. This indicates that the current increase is more driven by cost and emotional factors, rather than explosive growth on the demand side.

In summary, this week the East China market has shown a strong upward trend driven by costs and supply, but the demand side is cautious in accepting high prices. The overall focus of the market has shifted upwards, but there has been resistance in the high price area. The follow-up trend needs to pay attention to changes in import costs, the recovery of domestic refinery supply, and the sustainability of the surrounding market, especially to observe whether the current high prices can be absorbed by downstream actual demand.

If you have any enquiries or purchasing needs, please feel free to contact SunSirs with support@sunsirs.com.