SunSirs: China LPG Market Rose first and then Fell in September

In September, the Shandong LPG civilian market first rose and then stabilized, with a slight decline at the end of the month. According to data monitoring by SunSirs, the average price of LPG in the civilian Shandong market was 4,980 RMB/ton on September 1st, and 5,294 RMB/ton on September 26th. The monthly increase was 6.31%, a decrease of 1.78% compared to the same period last year.

In early September, the LPG market showed a significant upward trend. In early September, the CP surge was introduced, coupled with several consecutive increases in crude oil prices during the week. With strong support from the news, there was also a small amount of inventory on the market, and upstream goods were flowing smoothly. The LPG market actively pushed up. The demand side is steadily following up, the weather is gradually turning cold, and the demand for civilian combustion is expected to increase. The demand for chemical industry is also following up in a golden and silver atmosphere. Subsequently, the market entered a period of volatility and decline, with LPG prices rising to high levels. Downstream resistance was evident, and upstream began to give up profits and sell goods. In late September, there was an increase in enthusiasm for upstream cargo in the LPG market, coupled with an increase in port supply and an increase in supply. In order to stimulate cargo movement, refinery prices fell.

In September, the LPG futures market continued to fluctuate, and Saudi Arabia's CP prices continued to rise in September. The propane inventory in the United States is at a high level and there are currently no signs of destocking, with external FEI prices dropping slightly. Due to the impact of production reduction plans, the Middle East has seen a decrease in exports, with a tight supply of LPG in the short term. Civil demand has improved as the weather cools down, while chemical demand will be affected in the future due to cost inversion. Overall, the upward drive of the LPG market has weakened in the short term.

Overall, as the Double Festival approaches, the willingness to destock upstream increases, supply side expectations increase, and downstream stocking behavior also exists. Under the supply and demand game, it is expected that LPG will be slightly reduced in the short term.

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