SunSirs : In May, the LPG Market Experienced Twists and Turns, and Rose as a Whole

After the five small holiday, the liquefied gas market did not continue the downward line at the end of April, but a rebound market, but the overall Shandong civil gas market after the holiday was twists and turns trend, the overall compared with the beginning of the month is still up. According to the data monitoring of SunSirs, the average price of LPG in Shandong market was 4066.67 RMB/ton on May 5, and 4233.33 RMB/ton on May 17, with an increase of 4.10% during the period and 45.98% compared with the same period last year.

As of May 17, the mainstream prices of LPG in various regions of China are as follows:

First of all, look at the market of Shandong civil gas after the festival, the centre of gravity of Shandong civil gas has moved up after the festival, and the manufacturers have adjusted up one after another. The main reasons for the post-holiday rise are the following two points. One is that the international crude oil prices maintain a small rise trend after the holiday, and the news surface brings some positive support to the liquefied gas market. Second, there is a certain demand for replenishment downstream after the festival. The enthusiasm for entering the market is good, and the transportation is limited during the holiday period. The shipping atmosphere of manufacturers has improved significantly during the holiday period. The mentality is firm, and the price is mainly adjusted. But as prices rose to relatively high levels, they fell back by mid-May. Due to the small change in the supply of Shandong region, the supply in the region is relatively sufficient, and the international crude oil on the 14th appeared a substantial decline, the downstream is also limited to the high price acceptance capacity, with the replenishment after the end of the market has been withdrawn to wait and see, the market transaction atmosphere declined, the manufacturer's quotation appears loose, small profit shipment is the main. Enter this week (May 17), liquefied petroleum gas back up, the weekend two days Shandong liquefied gas prices pushed up in a row, LPG jumped in the futures market, most manufacturer inventory in a controllable state, Shandong domestic gas upward, but not rises, as the weather warming, terminal consumption slows, brings to the market must contain.

Look at the futures market, the 17th LPG futures market rose to the spot market to bring some positive support. On May 17, LPG futures contract 2106 opened at 4150, the highest was 4328, the lowest was 4142, and the closing price was 4248. The former settlement price was 4107, and the settlement price was 4254, up 141, up 4.75%. The trading volume was 91531, the position amount was 24601, and the daily increase position was -3249. (Quotation unit: RMB/ton)

Taken together, the current domestic gas prices are relatively high in Shandong, downstream to resist the price, the market enthusiasm, and temperatures on the rise, the late demand has weakened the expected, the overall inventory under control, the current manufacturer inventory no obvious pressure, Shandong domestic gas market in the short term is expected to price relatively strong, long term view still has the potential to fall.

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