The LPG market in Shandong began to decline continuously in mid March. After entering this week (3.21-3.25), it was not easy to look forward to the rising market, but it was blocked again. The rebound did not continue. According to the data monitoring of business society, the average price of LPG in Shandong market was 3800.00 yuan / ton on March 21 and 3843.33 yuan / ton on March 25, with an increase of 1.14% this week and 3.41% compared with March 1.
As of March 25, the mainstream prices of LPG in various regions of China are as follows:
Specification ﹣ mode of transportation ﹣ region ﹣ mainstream quotation
Air transportation in North China: 3920-3720 tons
Civil gas and automobile transportation in East China: RMB 3810-3950 / T
Civil gas and automobile transportation in South China: 4100-4200 yuan / ton
Civil gas and automobile transportation in Shandong Province: RMB 3750-3800 / T
At the beginning of the week, the rise of international crude oil brought some support to the market. Under the mentality of buying up downstream, the LPG civil market entered the market actively, the market transaction atmosphere was good, and the manufacturer’s quotation continued to push up. However, the international crude oil plummeted on March 24, which affected the market mentality. The trading atmosphere of the market was light again. After replenishment, the downstream companies withdrew from the market one after another, with a cautious mentality. Manufacturers shipping blocked, part of the inventory there is a certain pressure, more profit priority shipping, prices have declined. At present, the market supply in Shandong is relatively sufficient. On the demand side, the current weather temperature is gradually increasing, and the demand is decreasing. In the international market, near the end of the month, Saudi Aramco’s CP price is about to come out, but the CP is expected to fall in April, bringing some bad news to the market.
In the past seven days, the LPG futures market has been volatile and low, bringing Limited benefits to the spot market. On March 25, the opening price of LPG futures contract 2105 was 2770, the highest price was 3888, the lowest price was 3760, the closing price was 3867, the former settlement price was 3827, the settlement price was 3842, up 40, or 1.05%, the trading volume was 74076, the position was 30628, and the daily increase was – 589. (quotation unit: yuan / ton)
Overall, the market demand has improved this week, and the overall focus of Shandong civil gas market has moved up. However, the international crude oil market fluctuates frequently and has a large range, which brings limited benefits to the LPG market. Moreover, the expected decline of CP price in April brings bad news to the market. After the completion of downstream replenishment, the market withdraws from the market to wait and see, and obviously lacks confidence in the future market. As the weather continues to heat up, market demand is expected to decline. At present, due to many negative factors in the market, Shandong civil gas market is expected to be easy to fall but difficult to rise in the future.
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