In August, the LPG civil market (Shandong) showed a fluctuating upward trend, and the fluctuation range was relatively limited during the period. According to the data monitoring of the business agency, the average price of liquefied gas in Shandong market on August 1 was 3116.67 yuan / ton, and that on August 31 was 3176.67 yuan / ton. During the period, the average price rose by 1.93% and decreased by 30.69% compared with January 1.
In August, the LPG market continued the rise in July, and the focus continued to move upward. There were more favorable conditions in the month, supporting the market to rise again. However, due to the traditional off-season has not passed, the market is still negative factors, the road to rise is more difficult, showing a volatile upward trend in the month. At the beginning of the month, the market first returned to rationality. Due to the resistance of the downstream to high prices, more cautious wait-and-see, manufacturers’ shipment is hindered, and more small price cuts to stimulate downstream market entry. Subsequently, due to the slight increase of CP price in August and the slight rise of international crude oil during the period, the overall supply of the market did not change much, and the support price rose again under multiple favorable conditions. The enthusiasm of the downstream to enter the market turned active, and they entered the market to replenish goods one after another. The manufacturer’s inventory is controllable as a whole, the production and sales are balanced, the mentality is firm, and the price rises sharply.
In the middle of the month, Shandong LPG civil market continued to rise, the range was narrowed, and most prices exceeded 3200 yuan / ton. From August 10, Shandong market continued to rise slightly. On the 10th, international crude oil rebounded slightly, bringing some support to the market. Downstream more on-demand procurement, market entry enthusiasm, manufacturers shipping smoothly. The overall inventory in the upstream is mostly maintained at the median level. The market supply of civil gas in Shandong has not changed much, and the mentality is relatively firm. From October to December, the prices of main producers increased slightly, while other manufacturers followed. However, the ability of the downstream to accept high prices is limited. With the price rising, the resistance increases, and the enthusiasm for entering the market turns weak. Until the 17th, the price was loose and the market was up and down. With the continuous price rise, downstream delisting and wait-and-see, the atmosphere of manufacturers’ shipment weakened, and the overall inventory increased slightly, reaching the above median level.
At the end of the month, Shandong LPG civil market remained stable on a large scale with limited fluctuation range. The price was mostly maintained at about 3200 yuan / ton, and the market transaction atmosphere was general. From August 18 to 20, due to the limited downstream demand and resistance to high prices, the enthusiasm for entering the market turned weak and the atmosphere of shipment was general. The market was weak at first, but the range was not large. Subsequently, on the 21st and 24th, there were two small rises, but the range was still limited. Due to the low level of supply in the District, after the price dropped slightly, the downstream market was appropriately replenished, and the transaction atmosphere was improved. After the manufacturers’ inventory fell to the middle level, some of them pushed up sporadically, and the upstream mentality was strong, and the end of August was high consolidation.
Until August 31, the mainstream prices of LPG in various regions in China are as follows:
Specification, mode of transportation, region, date, mainstream transaction price
Civil gas and automobile transportation in North China on August 31, 3000-3120 yuan / ton
Civil gas and automobile transportation in East China on August 31, 2960-3000 yuan / ton
Civil gas and automobile transportation in South China on August 31, 2920-2950 yuan / ton
Civil gas and automobile transportation in Shandong Province on August 31, 3150-3200 yuan / ton
Civil gas and automobile transportation in Northeast China on August 31: 3100-3300 yuan / ton
Civil gas and automobile transportation in Western China on August 31, 2940-2950 yuan / ton
International crude oil price fluctuated in August and upward news boosted LPG Market
In August, the international crude oil market continued to release good news. The US crude oil inventory decreased sharply, the US crude oil inventory decreased significantly, and the meeting of the OPEC + Joint Ministerial Supervision Committee (jmmc) put pressure on the oil producing countries whose output exceeded the target, requiring them to further reduce production from August to September. As a result, a large number of offshore drilling platforms in the Gulf of Mexico were forced to shut down and the crude oil production decreased Low. International crude oil prices rose in August, with WTI crude oil futures up 7.15%.
LNG futures market rose first and then fell in August, which had limited support for spot market
On the whole, the LPG civil market in August was still affected by seasonal factors, the shipment was weak, the terminal market demand was limited, and most of the downstream market entry enthusiasm was general, and most manufacturers’ inventory was in the middle and high level. However, the CP price was released in September at the end of the month, propane remained stable compared with the previous month, and butane increased by $10 / T, although the increase was less than expected, it also brought some positive support to the market. With the end of the off-season in August and the traditional sales peak season of “gold, nine silver and ten”, the demand is expected to increase, but the negative factors still exist, and the market supply in September will increase slightly. It is expected to rise slightly in the short term. In the long run, September and October may have a substantial upward trend.
