Demand weak suppresses the market price of domestic LPG prices

Since entering April, the domestic LPG market has continued to decline in the shock. According to the latest data from the business community monitoring, on April 1st, the average ex-factory price of LPG for the major refineries across the country was 7,174 yuan/ton. From late onwards, the price of liquefied gas jumped sharply, dropping by over RMB 100/ton on a single day. The price index on the 25th was RMB 6,808/ton, which fell below the 7,000 yuan/ton mark, a drop of over 5%.

Since entering in April, international crude oil has maintained a turbulent trend. The recent bad news in the crude oil market, the oil market is still facing tremendous downward pressure. As of the 24th, the Brent crude oil price has remained at around $118/barrel.

Analyst Zhou Cuiping of LPG analyst of Energy Business Group believes that the international liquefied petroleum gas market is weak in terms of crude oil turbulence and sluggish self-demand. The low cost of imported gas continues to weigh on the domestic gas market. Although the crude oil market has risen, it has subsequently returned to decline. , unable to support the liquefied gas market to stabilize or rebound.

Currently, the market price of international liquefied gas contracts for May is still bearish. The low cost of imported gas in South China impacted the domestic market price. Guangzhou Petrochemical's inventory pressure gradually faded. On the 25th, the factory price fell to 7,000 yuan/ton mark. In the Shandong market, the price of LPG on the 25th day in Jinan Refinery fell by 150 yuan/ton on a single day to 6,850 yuan/ton.

Business community monitoring data shows that in April, China's main refinery operating rate continued to decline slightly. The main domestic refineries operating rate remained at around 81.3%. Although Dalian Xitai, Anqing Petrochemical, Zhenhai Refining, Maoming Petrochemical, and Shanghai Petrochemical Plants were overhauled, Northeast Daqing Petrochemical, Fushun Petrochemical, and Northwest Dushanzi Petrochemical and Lanzhou Petrochemical started to reduce their load, leading to a decline in the operating rate of the main refineries. .

Although the overall supply of liquefied gas in the country continues to show a trend of shrinking, the south gradually enters a cool period as the weather gets warmer, while the civilian demand in the north is in peak season, but it is affected by high retail prices and the impact of substitute products. The weak demand side suppressed the market mentality.

At present, the international crude oil fluctuates and fluctuates. The international liquefied petroleum gas market is sluggish. The market has insufficient confidence in the market outlook. Under bad circumstances, Zhou Cuiping believes that there is still a wave of declines in the market at the end of the month. In April, the domestic liquefied petroleum gas market will end with gloomy decline. Better or will appear in the middle of May.