According to the Commodity Market Analysis System of SunSirs, as of May 29th, the average price of LNG in China was 4,322 RMB/ton, which is lower than the average price of 4,356 RMB/ton on May 1st. The decline in domestic LNG prices this month was 0.78%.

This month, the domestic LNG market prices rose first and then fell. In early May, the domestic LNG market continued to rise. After the holiday, traffic resumed smoothly, market circulation was good, and heavy vehicles began to increase. On the cost side, there is support, coupled with an increase in downstream replenishment demand, the market is operating at a high price, and liquid prices have continued to rise. In mid May, domestic LNG prices stopped rising and fell, with an overall weak trend. At present, upstream inventory is under pressure, and there are many heavy vehicles in the market. Downstream replenishment enthusiasm has weakened, with on-demand procurement being the main focus. Poor terminal demand, resistance to high prices, and flat market trading. In the face of weak demand, the prices of LNG have fallen sharply. In late May, due to the rise in sea gas prices, domestic liquid prices rebounded slightly. On May 29th, the bidding price for raw gas from PetroChina Northwest Liquid Plant in June was 2.58-2.8 RMB/cubic meter, with a lower price increase of 0.05 RMB/cubic meter compared to the previous period and a higher price increase of 0.17 RMB/cubic meter compared to the previous period, resulting in a transaction of 285 million cubic meters.

In May, domestic LNG prices experienced a significant decline, with the largest decline occurring in the week of May 13th at -3.69%.

LNG analysts from SunSirs believe that domestic LNG prices have been stabilizing recently. The new round of raw material gas bidding has raised the transaction price compared to the previous period, increasing cost support. It is expected that the short-term rise in domestic LNG prices will be the main trend.

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