Entering 2021, the LPG market will rise at the beginning. Shandong civil gas will go up sharply in the first week of January, and the current quotation is more than 4000 yuan / ton. According to the data monitoring of business society, the average price of LPG in Shandong market was 3490.00 yuan / ton on December 31 and 4083.33 yuan / ton on January 7, up 17.00% in the first week and 28.95% compared with November 1.
As of January 7, the mainstream prices of LPG in various regions of China are as follows:
Specification ﹣ mode of transportation ﹣ region ﹣ mainstream transaction price
Civil gas and automobile transportation in North China: 3950-4230 yuan / ton
Civil gas and automobile transportation in eastern China: 4500-4510 yuan / ton
Civil gas and automobile transportation in South China: 4300-4550 yuan / ton
Civil gas and automobile transportation in Shandong Province: RMB 4000-4300 / T
Civil gas and automobile transportation in Northeast China: 4150-4702 yuan / ton
After the introduction of the sharp rise in CP price in Saudi Aramco in January, the LPG civil market began to increase the ex factory price significantly during the new year’s day. After the holiday, the rising route of the market remains unchanged, and the ex factory price continues to rise. At present, many plants in Shandong’s civil gas market have broken through the 4000 mark, and the price has increased by 400-700 yuan / ton compared with that before the holiday. There are many positive factors in the market, and the rising cost of the first batch of products supports the upward price. Secondly, the international crude oil rose sharply on January 5, and the news was favorable to the market mentality. At present, the weather is cooling down obviously, the terminal demand has increased, and there is also a demand for replenishment after the festival. In addition, snow has appeared in some areas during the week, so there is a certain resistance in transportation. The manufacturer’s shipment is smooth, the market transaction atmosphere is positive, so the price rises sharply.
In terms of international crude oil, on January 5, the price of WTI crude oil futures market in the United States rose sharply, with the settlement price of the main contract at US $49.93/barrel, up US $2.31 or 4.85%. Brent crude oil futures market prices rose sharply, the settlement price of the main contract was 53.60 US dollars / barrel, or 2.51 US dollars or 4.91%. International oil prices soared on Tuesday, with WTI and Brent crude oil up nearly 5%, mainly due to Saudi Arabia’s unexpected announcement that it will voluntarily reduce production in February and March, and other OPEC + member countries maintaining stable production.
After the festival, the main players in the LPG futures market brought obvious support to the spot market, and the futures and spot rose hand in hand. On January 7, the opening price of LPG futures contract 2102 was 3945, the highest price was 4029, the lowest price was 3933, the closing price was 3953, the former settlement price was 3957, the settlement price was 3973, down 4, or 0.10%. The trading volume was 80727, the position was 35408, and the daily increase was – 426. (quotation unit: yuan / ton)
At present, the civil price of liquefied gas has risen to a relatively high level. Although the current rising trend has continued, the price has been pushed up too fast after the festival, the downstream’s acceptance capacity is limited, and it is already in conflict with the high price. The market transaction atmosphere has obviously weakened compared with the previous period. With the downstream delisting, the price may suspend the rising trend in the short term, and the horizontal consolidation is the main trend.