SunSirs: Under the Support of Costs, the Market Price of LPG Rose at the Beginning of the Month

Price trend

Since the beginning of June, the overall trend of the domestic LPG market was strong, and the Shandong civil gas market was mainly on the rise after the holiday. According to the data monitoring of SunSirs, the average price of LPG in the Shandong market was 6,237.50 RMB/ton on June 1, and the average price on June 7 was 6,362.50 RMB/ton, an increase of 2.00% during the period, and an increase of 53.93% compared with the same period last year.

Analysis review

At the beginning of the month, it was the Dragon Boat Festival holiday, the overall trend of the domestic LPG market was firm, and the price focus of Shandong's civil gas market moved up. The rise in the market is mainly positive from the international crude oil. After the holiday, the international crude oil fluctuated and rose, which brought obvious support to the market. In addition, there was a certain demand of replenishment for downstream after the holiday, the market trading atmosphere was mild, the manufacturer's mentality was strong, and the price was raised. However, due to the weak terminal demand, the rising market was blocked. In addition, the current civil gas price was relatively high, and the market had insufficient motivation to continue to rise, and the price fell within a narrow range on the 7th.

On June 7, the opening price of LPG futures contract 2207 was 5,932, the highest price was 6,045, the lowest price was 5,923, the closing price was 5,976, the previous settlement price was 5,966, the settlement price was 5,996, up 10, the trading volume was 121,019, the open interest was 52,110, and the daily Masukura -3,599. (quotation unit: RMB/ton)

Market outlook

The current high international crude oil price has brought obvious support to the market. However, with the arrival of the off-season, the terminal demand is weak, the market trading atmosphere is limited, and the price of civil gas is at a high level, making it difficult for the market to rise. It is expected that the price of Shandong's civil gas market may fluctuate and decline in the short term.

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