In February, the civilian LPG market in Shandong experienced a volatile decline. According to data monitoring from SunSirs, the average price of LPG in the civilian Shandong market was 4,980 RMB/ton on February 1st, and 4,854 RMB/ton on February 27th. The monthly decline was 2.53%, a decrease of 14.09% compared to the same period last year.

In February, the LPG market in Shandong experienced a weak downturn. At the beginning of the month, due to the impact of the Spring Festival holiday, downstream stocking was completed ahead of schedule. The market has entered a holiday mode, and it is basically closed during the Spring Festival period. After the holiday, downstream construction began one after another, and demand fell short of expectations, mainly consuming inventory. At the same time, some regions have been affected by rainy and snowy weather, resulting in a decrease in market capacity and increased sales pressure on manufacturers. Downstream cautious entry into the market has led to multiple negative impacts, resulting in a further decline in LPG prices.

The LPG futures market in February showed a weak and volatile trend, with overall loose supply throughout the month. Downstream combustion demand was still acceptable, and gasoline addition demand rebounded during the Spring Festival period, followed by a off-season. The continuous pressure on profits in downstream chemical industries has affected demand. PDH's profits rebounded but remained in a loss making state, with unstable demand for LPG.

Overall, the weather is expected to warm up in the future, and the demand for civilian use is expected to decrease. Chemical demand is expected to increase, and the introduction of CP in March is imminent. We closely monitor international prices and anticipate a strong trend in the LPG market in the short term.

If you have any questions, please feel free to contact SunSirs with support@sunsirs.com.