SunSirs: LPG Market Fluctuated and Rose in April

Price trend

In April, Shandong LPG operated in a volatile manner, with an overall increase. According to data monitoring by SunSirs, the average price of LPG in the civilian Shandong market was 5,030 RMB/ton on April 1st, and 5,126 RMB/ton on April 27th. The monthly increase was 1.91%, a decrease of 19.53% compared to the same period last year.

Analysis review

In April, the LPG market was stronger, and during the off-season of demand, it was significantly affected by news. At the beginning of the month, the sudden news caused crude oil to jump by over 7% due to OPEC+'s significant reduction in production and stabilization of oil prices. News support was enhanced, which boosted LPG prices. Subsequently, the increase in crude oil weakened, the support on the news side weakened, and the positive news was exhausted. The price of LPG fell back to the lowest point on the 12th, with a monthly average price of 4,900 RMB/ton, a decrease of 2.58% compared to the beginning of the month. The price  dropped to a low level, downstream restocking was carried out at low prices, manufactures destocking was smooth, and the LPG market experienced a wave upward trend, with prices operating on a stronger side. As of April 27th, the mainstream quotation for LPG in the civilian market in Shandong region was 5,150-5,200 RMB/ton.

The overall LPG futures market rose in April, with a significant boost from international oil prices. In the off-season of demand, it was difficult to rise. On April 25th, the opening price of liquefied petroleum gas futures contract 2306 was 4,732, the highest price was 4,750, the lowest price was 4,652, the closing price was 4,685, the previous settlement price was 4,730, the settlement price was 4,701, a decrease of 45, the trading volume was 108,050, the position was 81,406, and the daily increase was -5,297. (Quotation unit: RMB/ton)

Market outlook

Overall, as the May Day holiday approaches, there is an expected increase in commercial demand. At the same time, the weather has cooled down recently, and the demand for civilian combustion has increased. The trend of the civilian LPG market at the end of the month is stronger, and it is expected that there will be a wave of upward trend in May. However, overall demand is still in the off-season, and there is limited room for growth.

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