Price trend
According to the data monitoring of SunSirs, as of February 9, the average price of domestic LNG was 5,754 RMB/ton, which was 2.90% lower than the average price of 5,926 RMB/ton on February 3.
Analysis review
Domestic LNG prices continued to fall this week. After the holiday, the market resumed work in an all-round way, the supply in the market increased, the demand for replenishment in the downstream was limited, and the market began to oversupply. This week, some regions in China were blocked by traffic due to rain and snow, and LNG plants reduced their prices for sales. Affected by domestic gas, the price of some terminals of imported gas dropped sharply.
At 14:00-14:30 on February 9, PetroChina supplied the feed gas to Northwest Liquid Plant in the middle of February 2023 (February 11-20). The final turnover of 30 million m3 of resources was 3.52-3.56 RMB/m3, down 0.28 RMB/ton from the low price in early February and 0.42 RMB/ton from the high price.
Market outlook
LNG analysts from SunSirs believe that the oversupply of LNG in the domestic market increased recently, the price of raw gas was reduced, and the domestic rainy and snowy weather increased. Led by multiple negative factors, it is expected that the domestic LNG price will continue to fall in the short term.
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