SunSirs: Weak Demand, the Growth of China LPG Rebound

https://www.chemnet.com   Oct 17,2023 SunSirs

Last week (10.7-10.13), the Shandong LPG market experienced a volatile decline, with a slight overall increase. According to the Commodity Market Analysis System of SunSirs, the average price of LPG in the civilian Shandong market on October 7th was 5,254 RMB/ton, and on October 13th it was 5,256 RMB/ton, an increase of 0.04% during the cycle, a decrease of 4.4% compared to the same period last year.

Last week, the civilian LPG market in Shandong rose first and then fell, with gains taking back. As of Friday, the mainstream price in Shandong was 5,200-5,300 RMB/ton. At the beginning of the week, the market was slightly boosted by news of the rise in crude oil, with downstream on-demand procurement and a climbing trend in LPG prices. Subsequently, due to the impact of low-priced supply at the port, LPG shipments were not smooth, inventory increased, and prices shifted from rising to falling.

In the future, the current market has sufficient supply, but due to demand constraints, there is limited room for further growth. On the contrary, due to the impact of low-priced related products, it is expected that the LPG market will mainly undergo a narrow adjustment in the short term.

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