SunSirs: Cost Boost, China LNG had a weekly increase of over 10%

According to the Commodity Market Analysis System of SunSirs, the price of LNG in China has significantly increased this week. As of October 12th, the average price of LNG in China was 4,648 RMB/ton, which is a 10.25% increase compared to the average price of 4,216 RMB/ton on October 7th.

After the National Day holiday, the high-speed restrictions on hazardous chemical vehicles were lifted, transportation was smooth, and the circulation of LNG in the market was good. Recently, many regions in China have experienced cooling and rainy and snowy weather. The domestic weather has turned cold, leading to an increase in demand for LNG and an increase in willingness to replenish downstream reservoirs.

On the afternoon of October 9th, the bidding price for raw gas from PetroChina Northwest Liquid Plant in mid October (October 11-October 20th) was 2.63 to 2.68 RMB/square meter, with a lower price increase of 0.28 RMB/square meter compared to the previous period and a higher price increase of 0.25 RMB/square meter compared to the previous period. All 95 million cubic meters were sold. Due to the significant increase in raw gas prices and cost support, liquid plants have raised prices, and LNG prices in some regions have exceeded 5,000 RMB/ton. In terms of sea and gas, the LNG prices at some receiving stations have increased significantly.

LNG analysts from SunSirs believe that due to rising costs and colder weather, the domestic LNG market has shown a strong upward trend in recent days. After several consecutive days of rising, the trend slowed down and the enthusiasm for receiving goods from downstream decreased. It is expected that the domestic LNG price will fluctuate slightly in the short term, and there is still room for upward movement in the later stage as the heating season approaches.

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