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Home - News - Continued Weakness, the LPG Market Fluctuated Downward in July

Continued Weakness, the LPG Market Fluctuated Downward in July

July 28, 2022

Price trend

In July, the domestic LPG market continued to be weak, and the Shandong civil LPG market fluctuated and fell. According to the data monitoring of SunSirs, the average price of LPG in Shandong market was 5,890.00 RMB/ton on July 1, and the average price on July 27 was 5,630.00 RMB/ton, a decrease of 4.41% during the month, an increase of 24.19% compared with the same period last year.

Analysis review

In July, the traditional off-season of the domestic LPG market has not yet passed, and the overall trend is still weak, with less favorable market support, and the Shandong civil gas market fluctuated and fell. At the beginning of the month, supported by the rise of international crude oil, Shandong civil gas was relatively firm, and the price rose in a narrow range. However, the subsequent growth momentum was insufficient, and the benefits brought to the market in terms of cost were limited. In addition, the market demand was limited, the terminal demand was weak, the enthusiasm for downstream entry into the market was limited, and the market trading atmosphere was light. During the month, there was little change in Shandong market supply, the market supply was relatively sufficient, and it was difficult for prices to rise.

In July, the LPG futures market as a whole was still dominated by the declines, which brought limited support to the spot market. On July 27, the opening price of LPG futures contract 2209 was 5,391, the highest price was 5,434, the lowest price was 5,243, the closing price was 5,261, the previous settlement price was 5,276, the settlement price was 5,320, down 15, the trading volume was 117,717, the open interest was 70,842, and the daily Masukura -2,123. (quotation unit: RMB/ton)

Market outlook

Recently, the international crude oil price has fluctuated, and the overall trend is still weak, which brings a certain negative to the market. In July, the traditional sales off-season has not yet passed, the weather is hot, the terminal consumption is slow, and the enthusiasm for entering the market in the downstream is limited. The supply side of the Shandong market is relatively abundant, and the contradiction between market supply and demand is still there. It is expected that the price of Shandong's civil gas market will continue to decline in August.