SunSirs: China LNG Market Showed a Strong Upward Trend in April

According to the Commodity Market Analysis System of SunSirs, as of April 28th, the average price of LNG in China was 4,114 RMB/ton, which is 3,870 RMB/ton compared to the average price on April 1st. The price of LNG in China has increased by 6.30% this month.

This month, the domestic LNG market has seen a strong increase in prices. In early April, domestic demand for LNG performed poorly, with the market mainly oversupplied and liquid prices slightly declining. During the Qingming Festival, hazardous chemical vehicles were restricted and transportation was not smooth. After the Qingming Festival, transportation resumed smoothly and market trading increased. Maintenance of some domestic liquid plants has led to a decrease in the supply of LNG. In the context of tight supply, low liquid prices are starting to push upwards. Downstream restocking enthusiasm has increased, market demand has recovered, and the atmosphere of liquid factory adjustment is obvious. In mid April, due to the rise in import gas prices, domestic LNG prices followed suit, stimulating an increase in domestic terminal prices, and both sea and land prices of LNG rose. At the end of the month, the rise of domestic LNG slowed down, and the market was mainly wait-and-see.

According to the weekly K-bar chart from January 29, 2024 to April 15, 2024, it can be seen that domestic LNG prices increased significantly in April, with the largest increase of 1.91% in the week of April 15.

LNG analysts from SunSirs believe that domestic LNG prices have been stabilizing recently. The bidding for raw gas will start, and the market is mainly wait-and-see. Approaching the May Day holiday, downstream restocking demand has increased, and the market's upward momentum remains. It is expected that the domestic LNG prices will remain stable and improve in the short term.

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