SunSirs: China Shandong LPG Market Rose first and then Fell in December

In December, Shandong LPG market rose first and then fell. According to the data monitoring of SunSirs, the average price of LPG in the civil Shandong market was 5,118 RMB/ton on December 1, and 5,014 RMB/ton on December 28. The weekly decline was 2.03%, up 0.28% compared with the same period last year.

In December, the domestic LPG market rose first and then fell. Since late December, the price decline continued to the end of the month due to the superposition of bad news. In December, the civil LPG market in the east region actively pushed up, but given the acceptance of the downstream, the push was small. The refinery has a smooth flow of goods, and the downstream demand has warmed up. At the same time, with the gradual liberalization of local control policies and the recovery of road transportation, the market trading atmosphere has improved. However, the crude oil continued to fall in the future, resulting in insufficient momentum for the rise, and the market has stabilized. In late December, the market turned from stable to declining. On the one hand, transportation and demand were simultaneously suppressed due to the impact of the mask incident, and there was a strong wait-and-see atmosphere in the downstream. On the other hand, the market of related products was poor, and it was difficult to improve demand, and prices were continuously lowered. By the end of the month, the mainstream price of civil LPG in Shandong was 4,900-5,200 RMB/ton.

In December, the LPG futures market fell in shock, and the weak domestic and international economic environment and weak demand led to a large resistance to the rise of LPG. On December 28, the opening price of the liquefied petroleum gas futures contract 2302 was 4,385, the highest price was 4,390, the lowest price was 4,273, the closing price was 4,294, the previous settlement price was 4,367, the settlement price was 4,324, down 73, the trading volume was 98,227, the position was 77,496, and the daily position was 4,846. (Quotation unit: RMB/ton)

To sum up, the peak of infection in some parts of China has passed, and demand is gradually recovering. At the same time, the weather is cold, which is in the peak season of civil demand, and the price is relatively firm. It is expected that the Shandong civil LPG market will continue to decline with limited space next month, which is expected to stop falling and stabilize.

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