SunSirs: Negative Factors Were Concentrated, and LPG Was Downward Broadly

Price trend

This week (5.8-5.12), the Shandong LPG market experienced a broad decline. According to the Commodity Market Analysis System of SunSirs, the average price of LPG in the civilian Shandong market on May 8th was 4,920 RMB/ton, and on May 12th it was 4,588 RMB/ton. The weekly decline was 6.75%, and a decrease of 27.55% compared to the same period last year.

Analysis review

This week, the Shandong LPG civilian market was weak and declined, with an increased decline. During the week, crude oil fell several times, and the news suppressed market sentiment. At the same time, the concentration of low-priced cargo sources at ports further impacted the domestic market. With the rise of temperature, the demand for civilian heating decreased, and the demand for chemical industry decreased due to the tightening of profits. Downstream construction had decreased, and bearish factors were concentrated. On Thursday and Friday, the Shandong civilian LPG market experienced a drop of 200 to 250 RMB/ton.

Market outlook

Overall, upstream inventory was not high, while prices had fallen to low levels. Downstream entered the market when prices were low, and demand is expected to further improve. It is expected that the low price decline of LPG in the short term will slow down and fluctuate in a narrow range.

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