SunSirs: Limited Benefits, China LPG Market Fluctuates in a Narrow Range

China domestic LPG market narrowed last week, and the Shandong civil gas market rose first and then fell, with the decline greater than the increase in the week. According to the data monitoring of SunSirs, the average price of liquefied gas in the civil Shandong market was 5,498 RMB/ ton on October 17, and 5,494 RMB/ ton on October 24, with a weekly drop of 0.07%, 18.53% lower than the same period last year.

The overall fluctuation range of domestic liquefied gas market was limited last week. Shandong civil gas market rose first and then fell, with a poor trend. During the week, the market was mixed. In terms of cost, the weakness of international crude oil declined, which temporarily did not support the market. However, the supply is relatively low, and there is no obvious change. The upstream inventory is temporarily controllable, and the mentality of price fixing is obvious. In terms of demand, the weather continues to cool, terminal demand is good, and the overall market transaction atmosphere is mild. Shandong civil gas market is dominated by narrow adjustment.

Last week, the LPG futures market also showed a trend of high first and then low, with limited support for the spot market. On October 24, the opening price of the LPG futures contract 2211 was 5,066, the highest price was 5,200, the lowest price was 5,058, the closing price was 5,162, the previous settlement price was 5,137, the settlement price was 5,155, up 25, the trading volume was 93,534, the position was 24,842, and the daily position increase was -4,990. (Quotation unit: RMB/ ton)

At present, the international crude oil has stopped falling and rose, which has brought certain benefits to the market. However, the enthusiasm of the downstream market entry has turned weaker than that in the early stage, and some manufacturers have slightly lowered the factory price, mainly making profits for shipment. It is expected that the Shandong civil gas market may still fall slightly.

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