Last week, the domestic LPG market continued to be weak, mainly downward. On April 26, the average price of the domestic LPG (Shandong) market was 2,976.67 RMB/ ton, and on April 30, the average price was 2,806.67 RMB/ ton, with a weekly decline of 5.71%, 37.07% lower than the same period last year.

Analysis of Influencing Factors

Market: on the 26th, the civil LPG market recovered, and the trading atmosphere in Shandong market was weaker than that in the earlier stage. Last week, due to the approaching of the end of the month, most of the manufacturers needed to arrange store. Although the May Day holiday came, the early replenishment of the downstream was basically over, and the market entry was not active. Most of the delisting was mainly based on cautious wait-and-see. The manufacturers made small profits and stimulated the downstream marke. Crude oil continued to decline on April 28, once again depressing the market mentality, Shandong civil gas fell again, the extent of the increase, the main enterprise inventory pressure was still there, the pressure on inventory increased, the price continued to fall.

International market: Saudi Aramco announced in April that the price of propane and butane were lowered. Propane fell to $230/ T, down $200/ T from last month; butane $240/ T, down $240/ T from last month.

Industry: according to the price monitoring of SunSirs, in the 16th week of 2020 (4.20-4.24), there was one kind of commodity in the list of commodity price rise and fall in the energy sector, with diesel rising (0.67%). There were 11 kinds of commodities falling on a month on month basis, 4 kinds of commodities falling by more than 5%, accounting for 25% of the number of commodities monitored in the sector; the top three products falling were WTI crude oil (-34.08%), Brent crude oil (-11.72%), and dimethyl ether (-7.75%). This week's average was -4.6%.

Market Forecast

At present, the demand of the terminal market is basically stable and has increased compared with that of last month. On April 30, the rise of international crude oil has boosted the market. In May, CP will be released soon, with the expectation of rising and the increase of cost, which has also brought certain benefits to the market. The possibility of short-term growth is expected.

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