SunSirs: China Domestic LNG Prices have Stabilized after Rising (November 6-10)

According to the Commodity Market Analysis System of SunSirs, the price of LNG in China increased last week. As of November 10th, the average price of LNG in China was 4,860 RMB/ton, which is 0.62% higher than the average price of 4,830 RMB/ton on November 6th.

The domestic LNG prices have stabilized after a slight increase last week. The domestic cold air is coming, and the demand for replenishment has increased. Coupled with cost support, some liquid factories have slightly increased their prices. But the market supply is sufficient, with more heavy vehicles, and the upward momentum of liquid prices is weakened. On the afternoon of November 9th, the bidding price for raw gas at PetroChina Northwest Liquid Plant in mid November (November 11-November 20th) was 2.8 to 3.1 RMB/square meter, with a lower price of 0.52 RMB/square meter compared to the previous period and a higher price of 0.29 RMB/square meter compared to the previous period. All 11 million cubic meters were sold. The price of raw gas has decreased, cost support has weakened, and the domestic LNG market is stabilizing.

LNG analysts from SunSirs believe that the recent decrease in raw gas prices has weakened cost support. The inventory in the LNG market needs to be digested, and the industry is mostly stable and wait-and-see. It is expected the LNG prices is in consolidation in short-term.

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