SunSirs: Terminal Demand is Weak, LPG Market is Difficult to Rise in The Future
Entering this week (6.6-6.13), Shandong’s civil gas market fluctuated lower. Although the fluctuation was frequent, the range was limited. According to the data monitoring of the SunSirs, the average price of LPG in the Shandong market was 4176.67 RMB/ton on June 6 and 4140.00 RMB/ton on June 13, with an overall decline of 0.88% in the week, up 45.26% compared with the same period last year.
Shandong’s civil gas market fell as a whole this week. Although it fluctuated frequently in the week, the range was limited, and the overall control was within 50 RMB/ton. The overall transaction atmosphere of the market picked up in the middle and late part of the week. On Monday, due to the sluggish delivery of manufacturers last weekend, the market transaction price decreased. With the rise of international crude oil in the later stage, the news was favorable to the market mentality, and the civil gas market in Shandong stopped falling and went up. In addition, with the arrival of the Dragon Boat Festival, the enthusiasm of downstream market entry was better than that in the earlier stage. In terms of current market supply, the supply of civil gas in Shandong has not changed much this week and is still in a sufficient state. In terms of demand, due to seasonal factors, the weather temperature is high, and the overall demand of the gas market is weak. At present, the manufacturers mainly guarantee the delivery, but they are cautious, and the market fluctuation is limited.
In the crude oil market, the international oil price rose on the 11th. As of the close of the day on June 11th, the futures price of light crude oil delivered in July on the New York Mercantile Exchange rose by the US $0.62 to the US $70.91 per barrel, or 0.88%; London Brent crude for August delivery rose $0.17, or 0.23%, to $72.69 a barrel.
On June 11, the opening price of LPG futures contract 2108 was 4400, the highest price was 4509, the lowest price was 4400, the closing price was 4490, the former settlement price was 4414, the settlement price was 4461, up 76, or 1.72%, the trading volume was 63929, the position was 59276, and the daily increase was 6598(Quotation unit: RMB/ton)
Comprehensively, the current behavior in the international crude oil and futures market is the main, which brings some support to the market. With the end of the Dragon Boat Festival holiday, there is a certain demand for replenishment downstream, and the enthusiasm for entering the market is expected to improve. But the current market is still in the short-term, the traditional demand off-season, terminal demand is weak, market supply and demand contradiction still exists, which brings obvious control to the market, and it is difficult to increase the market in the future. It is expected that the price of the Shandong civil gas market will be strong after the saving, and there is still a risk of weakness in the long term.