1  Price Trend

Last week, the domestic LPG market rose first and then fell. At the beginning of the week, the average price of the domestic LPG (Shandong) market was 4,833.33 RMB/ ton, while at the end of the week, the average price was 4,800 RMB/ ton, with a decline of 0.69% in the week. The price was 12.94% higher than that of the same period last year.

2  Analysis of Influencing Factors

Product: the domestic LPG market rose first and then fell last week, with a general trading atmosphere. As of January 10, the price of LPG from Sinopec Guangzhou Chemical Co., Ltd. was 4,700 RMB/ ton, from Sinopec Jingmen Petrochemical Co., Ltd. was 4,830 RMB/ ton, from Sinopec Shanghai Petrochemical Co., Ltd. was 4,600 RMB/ ton, from Sinopec Qingdao Refining Chemical Co., Ltd. was 4,750 RMB/ ton, from Sinopec Shijiazhuang Refining Chemical Co., Ltd. was 4,650 RMB/ ton, from Sinopec Sinopec The factory price of Luoyang Petrochemical LPG was 4,750 RMB/ ton.

Last week, China's LPG rose and fell, showing mixed performance. The northern market as a whole rose first and then fell, while the southern market mainly fell. In the early stage, with the boost of broad rise in international crude oil, the overall LPG market rose and the price rose to a high level. However, with the price rising, the terminal demand was limited, the terminal inventory was basically above the middle level, the enthusiasm of the downstream market was not high, and the overall transaction atmosphere of the market was obviously weakened. In addition, the international crude oil width was lowered in the late last week, which affected LPG, mainly downward.

Saudi Aramco's January CP reported a sharp rise in both propylene and butane. Propane rose to $565/ ton, up $12/ ton from last month, and butane to $590/ ton, up $135 / T from last month.

Industry: according to the price monitoring of SunSirs, in last week of 2020 (1.6-1.10), there were 6 kinds of commodities in the list of rise and fall of bulk commodity prices in the energy sector, including 1 kind of commodity with a rise of more than 5%, accounting for 6.3% of the number of commodities monitored in the sector; the top 3 commodities were methanol (5.24%), fuel oil (3.70%) and DME (2.05%). There were 8 kinds of commodities falling on a month on month basis, 2 kinds of commodities falling by more than 5%, accounting for 12.5% of the number of commodities monitored in the sector; the top 3 products falling were LNG (-6.45%), WTI crude oil (-5.54%) and Brent crude oil (-4.71%). Last week's average was -0.69%.

3  Market Forecast

According to the LPG analyst of SunSirs, at present, the international crude oil reserves have a certain support for the LPG market. With the Spring Festival approaching, the storage, discharge and storage demand of manufacturers, if there is no obvious positive in the short term, there is still a possibility of price reduce.

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