SunSirs: LPG Market Fell in March

Price trend

In March, the Shandong LPG market fell steadily. According to data monitoring by SunSirs, on March 1, the average price of LPG in the civilian Shandong market was 5,662 RMB/ton, and on March 28, the average price was 4,962 RMB/ton. The monthly decline was 12.36%, and down 28.82% compared to the same period last year.

Analysis review

In March, the Shandong LPG market significantly declined, with prices relatively stable in the early and late March, and significant price declines during the mid March period. The main reasons for the decline were as follows: First, in March, the price of LPG was relatively high, and downstream procurement was mainly on demand. Civil demand entered the off-season, and the contradiction between supply and demand had increased. The second was that the prices of crude oil and imported gas had been fluctuating and falling, which hit the mentality of the industry. At the same time, related products had also fallen significantly, further dragging the market for LPG. Overall, in March, the supply side was relatively loose and the demand side tightened, which led to the price of LPG downward under pressure.

Overall, at the end of the month, the crude oil price rebounded, the LPG market stopped falling and stabilized, the weather gradually warmed, and the downstream civil demand entered the off-season. In the chemical industry, PDH construction continued to rebound. Currently, the LPG price had been adjusted to a phased low.

Market outlook

It is expected that in April, the LPG market will undergo a narrow consolidation and operation, paying close attention to changes in crude oil and downstream demand.

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