In May, the domestic LPG market fluctuated frequently, and the overall civil gas in Shandong showed a fluctuating upward trend. According to the data monitoring of SunSirs, the average price of LPG in the Shandong market was 4066.67 RMB/ton on May 1 and 4143.33 RMB/ton on May 31, with an increase of 1.89% in May and 55.76% compared with the same period last year.
Although the overall focus of the Shandong civil gas market moved upward in May, the favorable and negative factors of the market in the month were staggered, and the fluctuation was frequent. After May 1 holiday, Shandong civil gas is the first upward trend, manufacturers have been increasing. The main reasons for the rise after the festival are as follows: first, the international crude oil price keeps a small upward trend after the festival, and the news side brings some favorable support to the LPG market. Second, there is a certain demand for replenishment downstream after the festival, and the enthusiasm for entering the market is good, and the traffic and transportation are limited during the holiday period. The factory's delivery atmosphere has been significantly improved during the holiday period, with a strong mentality and price increase as the main factor.
However, as the price rose to a relatively high level, the market dropped in the middle of May. Due to little change in supply in Shandong, the supply in the region was relatively sufficient, and the international crude oil fell sharply on the 14th, and the downstream also had limited ability to accept high prices. With the end of replenishment, one after another withdrew from the market to wait and see, the market transaction atmosphere declined, the quotation of manufacturers became loose, and the shipment was mainly made with a small margin of profit. At the end of the month, although the LPG market was boosted by the sharp rise of international crude oil, the rise did not continue and returned to the downward trend at the end of the month. In terms of supply, there is no obvious change in the supply of civil gas in Shandong recently. On the demand side, due to the obvious warming of the weather, slow terminal demand, long replenishment cycle in the downstream, weak overall market demand, manufacturers mostly guarantee shipment, and are more cautious, resulting in weak prices.
Shortly, the LPG futures market has been surging, which has brought some support to the spot market. On May 31, the opening price of LPG futures contract 2107 was 4306, the highest price was 4396, the lowest price was 4302, the closing price was 4392, the former settlement price was 4246, the settlement price was 4354, up 146, or 3.44%, the trading volume was 123279, the position was 53580, and the daily increase was–1469(Quotation unit: RMB/ton)
On the whole, the price rise of CP in June brought some support to the market due to the increase in imported gas cost. The enthusiasm for downstream market entry has improved compared with the previous period, and the market transaction atmosphere is mild. However, the negative market factors still exist, the terminal consumption is slow, and the traditional consumption off-season is coming. It is expected that the market price of Shandong civil gas will be firm for the time being, and there is still a possibility of a decline in the long term.
