SunSirs: China LPG Market Turns from High to Low after the National Day Holidays

After returning from the National Day holiday, the domestic liquefied gas market rose in shock. The Shandong civil gas market was first high and then low, with the overall focus moving up. According to the data monitoring of the business community, the average price of liquefied gas in the civil Shandong market was 5,456 RMB/ ton on October 7 and 5,498 RMB/ ton on October 13, with a rise of 0.77% during the period and a decrease of 9.02% compared with the same period last year.

In the first week after the festival, the domestic liquefied gas market trend was volatile. The Shandong civil gas market was first high and then low, and the overall focus moved up slightly. During the holidays, thanks to the favorable rise of international crude oil, the liquefied gas market followed the trend. In addition, after the holidays, the lower reaches of the market were concentrated for replenishment. The market trading atmosphere was good, the manufacturers' mentality was firm, and the prices continued to rise. However, since October 10, the international crude oil fell for three consecutive days, which temporarily did not support the market and affected the mentality of the industry. The enthusiasm of downstream market entry has weakened, and the liquefied gas market has been unable to continue to rise. The price began to callback on October 11.

In the first week after the festival, the LPG futures market also showed a trend of rising first and then falling. On October 13, the opening price of LPG futures contract 2211 was 5,095, the highest price was 5,135, the lowest price was 5,030, the closing price was 5062, the previous settlement price was 5,090, the settlement price was 5,086, down 28, the trading volume was 96,980, the position was 61,543, and the daily position increase was -2,006. (Quotation unit: RMB/ ton)

At present, affected by social and public health events, the terminal demand is limited. The downstream is cautious, and the market is mostly delisted and wait-and-see. The trading and investment atmosphere of the market has weakened, and the liquefied gas market is running in a weak trend. However, the international crude oil futures rebounded on October 13, and the cost once again boosted the market. It is expected that China Shandong civil gas market has limited falling space, with a narrow consolidation in the short term.

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