In November, Shandong LNG market rose first and then stabilized. At the end of the month, it accelerated its decline and fell as a whole. According to the data monitoring of SunSirs, the average price of LPG in the civil Shandong market was 5,178 RMB/ ton on November 1, and 5,124 RMB/ ton on November 29, with a weekly drop of 1.04%, 3.86% lower than the same period last year.

At the beginning of this month, due to the impact of domestic public health and safety time, the regional transportation is not smooth, and downstream demand is difficult to scale, leading to the poor delivery of goods by upstream enterprises and the price drop. In the second week of November, along with the recovery of future transportation, the enterprise's goods movement was smooth, the enterprise's inventory was controllable, and it actively pushed up. However, the international oil price fell for three consecutive weeks, and the downstream market entry mentality became weaker. Although the market rebounded, the decline was greater than the increase, which depressed the confidence of the industry. Some enterprises gave up profits and goods slightly, and the market entered the consolidation stage. In the last week of November, the market entered a stage of rapid decline. Affected by the escalation of domestic public health and safety incidents, the transportation resistance increased, and the on-site inventory increased. The upstream was stable and the price was lowered many times. As of November 29, the mainstream price of civil LPG in Shandong market was 5,050-5,200 RMB/ ton.

The LPG futures market continued to decline this month, mainly due to the following two reasons: First, the crude oil price continued to weaken, driving down the cost expectation; Second, the domestic economy is not optimistic in the short term. LPG spot demand is weak and the price is weakened periodically. On November 29, the opening price of the LPG futures contract 2301 was 4,780, the highest price was 4,893, the lowest price was 4,741, the closing price was 4,781, the previous settlement price was 4,796, the settlement price was 4,800, down 15, the trading volume was 120,082, the position was 72,389, and the daily increase was 661. (Quotation unit: RMB/ ton)

To sum up, there are many negative factors in the current market, with overstock in the market and mainly destocking in the market. It is expected that China Shandong civil LPG market may still decline in the near future.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.