SunSirs: China LPG Price Keeps Rising in Off Season

2021-09-18by admin

  In July, affected by seasonal factors, LPG was in the off-season of traditional sales, but the rising market at the beginning of the month continued at the end of June, and the price continued to rise. According to the data monitoring of SunSirs, the average price of LPG in Shandong market was 4,326.67 yuan / ton on July 1 and 4,426.67 yuan / ton on July 5, with an increase of 2.31% during the period and 6.84% compared with June 1.

  Recently, there are many positive factors in the LPG market, and the leading price center has moved up. East China and North China showed the most obvious increase, followed by Shandong, and South China made up for it. In terms of international crude oil, the prices of international crude oil and external crude oil are running at a high level, and the news is favorable to the market mentality. Secondly, the CP price was introduced in July. Propane and butane were increased significantly. The rising import cost brought good support to the market. The mentality of the industry was good. Many manufacturers in the market delivered goods smoothly, and the market transaction atmosphere was mild. At present, the mainstream transaction price in Shandong is 4,350-4,400 yuan / ton. There is no obvious change in the supply of civil gas in Shandong.

  The rise of LPG futures market also brought a certain boost to the spot market. On July 5, the opening price of LPG futures contract 2108 was 4,943, the highest price was 4,998, the lowest price was 4,900, the closing price was 4,988, the former settlement price was 4,907, the settlement price was 4,951, up 81, or 1.65%, the trading volume was 67,413, the position was 51,899, and the daily increase was 575(Quotation unit: yuan / ton)

  On July 5, international oil prices rose. The US futures market was closed during the Independence Day holiday. The settlement price of the main contract in Brent crude oil futures market was $77.16/ barrel, up $0.99, or 1.3%. The negotiations between the organization of Petroleum Exporting Countries and its allies (OPEC+) reached a deadlock again, and the meeting was suddenly called to a halt. As soon as the news came out, oil prices rose sharply.

  At present, the market is dominated by favorable factors, the price center is constantly moving up, the price of Shandong civil gas is about to exceed 4,500 yuan / ton, the international crude oil continues to rise, the inventory of manufacturers is in a controllable state, and the mentality is relatively strong. However, as prices continue to rise, the resistance of the downstream increases, and the enthusiasm for entering the market has weakened compared with the previous period. LPG is still in the traditional off-season, and the terminal demand is weak, which brings a certain constraint to the market. The possibility of a substantial rise in the later period is limited. It is expected that the price of Shandong civil gas market will be strong in the short term, and there is still a possibility of weakening in the later period.