According to the data of SunSirs, the average price of domestic LNG was 3,923.33 RMB/ ton on November 30, and 3,766.67 RMB/ ton on November 1, with a rise of 4.16% in the month and a decrease of 15.63% compared with the same period last year.
Last month, the domestic LNG market first fell and then rose, rising more than 4% in the whole month. In November, the market continued to be depressed, prices continued to fall, the peak season was cold, depressing the mood of the industry. Due to the rapid price rise in the early stage, insufficient follow-up in the demand side, poor shipment from many local LNG plants, and continuous price drop, the overall heating in the middle and north of China and the bidding for raw gas were not expected to be good. At the same time, due to the emergency response to heavy polluted weather in some areas, industrial users reduced production, the demand continued to decline, and manufacturers' shipment was under pressure. As of November 23, the decline rate was about 11%, and then slowed down. Near the end of November, the market was boosted by favorable factors such as cold weather. The price rebounded strongly and rose 17.8% in a few days.
In the afternoon of November 27, PetroChina western direct gas supply LNG plant bid for raw gas in the first half of December. The trading natural gas volume was 120 million cubic meters, 38.85 million cubic meters less than that in the second half of November. The starting price was 1.74 RMB/ cubic meter. The decrease of trading volume has boosted the upward trend of LNG price. In addition, the recent temperature drop, the increase of urban fuel demand, the superposition of gas restriction in some regions, the regional tight supply, and the continuous price rise have a certain practical driving force. The domestic LNG price may continue to rise in the short term.
According to the data monitoring of SunSirs, as of November 30, the average price of Inner Mongolia was around 3,900 RMB/ ton, which was about 100 RMB/ ton higher than that at the beginning of the month. The average price in Shaanxi was around 4,250 RMB/ ton, up about 400 RMB/ ton. The average price in Shanxi was around 4,400 RMB/ ton, up about 500 RMB/ ton. In Xinjiang, the average price was around 3,550 RMB/ ton, down 650 RMB/ ton. The average price in Ningxia was about 4,010 RMB/ ton, up about 120 RMB/ ton. In Sichuan, the average price was around 4,200 RMB/ ton, up about 400 RMB/ ton, and the price of LNG in various regions rose sharply.
SunSirs LNG analysts believe that: currently cold weather is coming, temperature is falling, heating demand is going up, gas restriction in some areas is superimposed, bidding is reduced, regional supply is still tight, manufacturers are strong in price support, and all favorable factors are strong. It is expected that China domestic LNG market will be better in the short term, and the price may continue to rise.
