SunSirs: Domestic LNG Prices Fluctuated and Rose in April

Price trend

According to the Commodity Market Analysis System of SunSirs, as of April 30th, the average price of LNG in China was 4,416 RMB/ton, and the price was 4,310 RMB/ton on April 1st. The increase in domestic LNG prices this month was 2.46%.

Analysis review

According to the weekly increase and decrease from February 6, 2023 to April 24, 2023, it can be seen that domestic LNG rose significantly in April, with the largest increase of 7.56% in the week of April 17.

This month, domestic LNG prices were mixed, with fluctuations and an increase overall. In early April, due to the impact of snowfall and rainy weather in some areas of China, transportation was not smooth, and coupled with insufficient market demand, LNG prices continued to decline. After the Qingming Festival, the weather had improved, but the oversupply situation in the market was still ongoing, and the demand side remained sluggish. In mid April, after a continuous decline in domestic LNG prices, it remained at a low level. Downstream replenishment demand increased, and LNG prices stopped falling and rose. The price of raw gas increased, cost side support was positive, and there was a strong bullish atmosphere in the industry. Starting from late April, after a continuous increase in LNG prices in the early stages, downstream delivery capacity was limited, and LNG prices began to decline. As the May Day holiday approaching, the demand for pre holiday restocking increased, and LNG prices operated smoothly after it rose again.

Market outlook

LNG analysts from SunSirs believe that the domestic LNG market fluctuated and fluctuated in April. After May Day, transportation resumed and shipments were smooth. Downstream demand was weak, and the market was mainly wait-and-see. It is expected that the LNG market will mainly be sorted in the short term.

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