In May, the civilian LPG market in Shandong fluctuated and rose. According to data monitoring from SunSirs, the average price of LPG in the civilian Shandong market was 5,052 RMB/ton on May 1st, and 5,152 RMB/ton on May 29th. The monthly increase was 1.98%, an increase of 22.96% compared to the same period last year.

After the May Day holiday, LPG experienced a surge, mainly due to an increase in demand for chemical products. Especially with the increase in operating rate of PDH devices, active entry into the downstream market, stable demand, stable production of upstream devices, low inventory, supporting the mentality of operators, and an increase in LPG prices. Subsequently, due to the shutdown of PDH devices in the region, demand decreased, and combustion demand was in the off-season, which constrained the LPG market and caused prices to stop rising and falling. In late May, some LPG factories underwent maintenance and supply tightened, leading to an increase in LPG prices, which then fluctuated from high levels until the end of the month.

The LPG futures market in May showed a strong trend of volatility. The LPG used for combustion has entered the off-season, and there is an expectation of an increase in chemical demand. The operating level of downstream deep processing equipment for LPG fluctuates narrowly, driving up demand, The PDH unit started operating at 76.21%, and the alkylated oil started operating at 43.38%, The operating rate of MTBE equipment is 67.48%. Although the profit of the chemical plant is still a loss, the profit loss has decreased and is being repaired upwards.

Overall, the LPG market in May was boosted by demand and the market has improved. Currently, the main downstream PDH production is maintained at around 75%, while propane prices are expected to rise. It is expected that LPG will fluctuate and rise in the short term.

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