In December, the LPG market in Shandong continued to decline. According to data monitoring by SunSirs, the average price of LPG in the civilian Shandong market was 5,262 RMB/ton on December 1st, and 4,970 RMB/ton on December 27th. The monthly decline was 5.55%, a 1.55% decrease compared to the same period last year.

In December, the domestic LPG market experienced an increase in decline. At the beginning of the month, crude oil prices continued to decline, coupled with a weak decline in related products such as propane. The bearish news suppressed the market sentiment, and downstream market entry enthusiasm was weak. In terms of supply, upstream production is relatively stable, but there is a concentrated supply of goods at the port, resulting in overall loose supply. Subsequently, the shipment of related products propane narrowed the price difference with LPG, further suppressing the demand for LPG and leading to a continuous decline in the LPG market. At the end of the month, the market is facing rainy and snowy weather, with transportation restrictions in some areas, resulting in poor upstream cargo flow. In summary, the LPG market in December was affected by multiple bearish factors such as news, related products, demand, and weather, resulting in a continuous decline in LPG prices.

The LPG futures market in December showed a strong and volatile trend, with temperatures in mid November higher than the average level in previous years and lower than expected combustion demand. In addition, the number of congestion days in the Panama Canal has fallen, resulting in a significant drop in LPG prices and a weaker trend than crude oil. Afterwards, with the repair of PDH profits, there is a strong expectation of a rebound in the operating rate of PDH equipment, and a cold wave is coming across the country, increasing demand for combustion. Coupled with the stabilization and rebound of oil prices, the trend of LPG prices in December is relatively strong.

Overall, the current market has sufficient supply. In the early stage of New Year's Day, the upstream actively sells goods, while the downstream has low enthusiasm for entering the market. It is expected that the LPG market will experience a narrow decline in the short term.

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