Price trend

According to the Commodity Market Analysis System of SunSirs, as of April 7th, the average price of LNG in China was 3,926 yuan/ton, which was a decrease of 8.91% compared to the average price of 4,310 yuan/ton on April 1st.

Analysis review

This week, domestic LNG prices continued to decline. This week, due to the impact of snowfall and rainfall in some parts of China, transportation was not smooth, and coupled with insufficient market demand, LNG prices continued to decline. After the Qingming Festival, the weather had improved, but the oversupply situation in the market was still ongoing, and the demand side remained sluggish. On April 7th, the bidding for raw gas supply to the factory of PetroChina Western Company ended, with a starting price of 2.08 yuan/square meter and a transaction price of 2.25-2.33 yuan/square meter. The transaction price for the low-end was reduced by 0.04 yuan/square meter compared to the previous auction, while the transaction price for the high-end was reduced by 0.04 yuan/square meter compared to the previous auction.

Market outlook

LNG analysts from SunSirs believe that the price of domestic LNG market continued to decline recently. Downstream demand was poor, and market supply exceeded demand. In addition, the decrease in raw gas prices had weakened cost support. Under the influence of bearish factors, it is expected that domestic LNG prices will continue to decline in the short term.

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