SunSirs: LPG Market Fluctuated and Fell in February

Price trend

In February, the LPG market in Shandong fell in shock. According to the monitoring of the data of the SunSirs, the average price of LPG in the civilian Shandong market was 5,772 RMB/ton on February 1 and 5,650 RMB/ton on February 27, with a decline of 2.11% in the month, and down 5.3% from the same period last year.

Analysis review

In February, the domestic LPG market began to fluctuate. In January, the demand for LPG market increased significantly and the low level of on-site inventory supported the market. The market continued until the beginning of February. At the beginning of the month, the CP price was introduced, the import cost increased significantly, which was good for the domestic demand market, and the delivery of trading inquiries was significantly active. However, the supply of high-priced goods was soon restrained. Downstream purchases were made on demand, and there was a strong wait-and-see atmosphere. At the same time, the crude oil price fell several times in the month, further depressing market confidence, resulting in the price of LPG dropped many times. In the late February, the price adjustment was in place, the enterprise went smoothly, the stock in the market was controllable, and the price began to rebound slightly. Throughout February, the LPG market was affected by demand, and the price fell mainly from high points.

Market outlook

In general, the profit of propane dehydrogenation unit in chemical industry is under pressure, and some units have been shut down, but the catering industry in various regions has recovered rapidly, and the recovery progress is fast, the supply market is relatively stable, and the inventory is controllable. Under the game of supply and demand, it is expected that the LPG market will be dominated by volatility at high levels in early March.

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